1st Half 2022 Finance Industry Trends

1ST HALF 2022 KEY HIGHLIGHTS

The largest deal in 1st Half 2022 was Intercontinental Exchange’s announced acquisition of Black Knight, a provider of integrated software, data, and analytics solutions that facilitate and automate business processes across the homeownership lifecycle, for $15.92 billion.

Three of the top five highest value transactions in 1st Half 2022 occurred in the Banking segment. These three deals, with a combined value of $17.67 billion, accounted for 57 percent of the industry’s aggregate value year-to-date.

1ST HALF 2022 KEY TRENDS

Total transaction volume in 1st Half 2022 increased by 19 percent over 2nd Half 2021, from 226 to 268.

In terms of acquirer type, strategic volume rose 25 percent on a half year basis, from 167 to 209. Private equity volume remained constant
at 59.

Total transaction value in 1st Half 2022 declined by two percent over 2nd Half 2021, from $31.60 billion to $30.84 billion.

The median revenue multiple moved upward from 3.1x in 2nd Half 2021 to 3.3x in 1st Half 2022.

The segment with the largest rise in volume in 1st Half 2022 over 2nd Half 2021 was Capital Markets with a 45 percent gain, from 55 to 80 transactions.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,282 Financial Technology and Information transactions between 2020 and 1st Half 2022, of which 270 disclosed financial terms, and calculated the aggregate transaction value to be $142.51 billion. Based on known transaction values, we project values of 1,012 undisclosed transactions to be $26.83 billion, totaling $169.35 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2020 to 1st Half 2022 with enterprise values above $80 million received a median revenue multiple of 4.6x, whereas those in the $40-$80 million range garnered a median revenue multiple of 2.9x and those in the $10-$40 million range had a median revenue multiple of 1.8x.