1st Half 2023 Finance Industry Trends

1ST HALF 2023 KEY HIGHLIGHTS

The largest deal in 1st Half 2023 was Nasdaq’s announced acquisition of Adenza, a subsidiary of Thoma Bravo, which provides customers with end-to-end, trading, treasury, risk management and regulatory compliance platforms that can be delivered on-premise or on-cloud, for $10.5 billion.

Five of the top ten highest value transactions in 1st Half 2023 occurred in the Payments segment. These five deals, with a combined value of $3.79 billion, accounted for 19 percent of the industry’s aggregate value year-to-date.

1ST HALF 2023 KEY TRENDS

Total transaction volume in 1st Half 2023 decreased by 7.5 percent over 2nd Half 2022, from 223 to 206.

In terms of acquirer type, strategic volume decreased 8 percent on a half year basis, from 174 to 160. Private equity volume decreased from 49 to 46.

Total transaction value in 1st Half 2023 increased by 21 percent over 2nd Half 2022, from $16.48 billion to $19.88 billion.

The median revenue multiple moved upward from 4.7x in 2nd Half 2022 to 4.9x in 1st Half 2023.

The segment with the largest rise in volume in 1st Half 2023 over 2nd Half 2022 was Capital Markets with a 14.7 percent gain, from 68 to 78 transactions.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,213 Financial Technology and Information transactions between 2021 and 1st Half 2023, of which 239 disclosed financial terms, and calculated the aggregate transaction value to be $89.72 billion. Based on known transaction values, we project values of 974 undisclosed transactions to be $19.86 billion, totaling $109.58 billion worth of transactions tracked over the past two and a half years.

Transactions from 1st Half 2021 to 1st Half 2023 with enterprise values above $80 million had a median revenue multiple of 5.2x, whereas those in the $40-$80 million range garnered a median revenue multiple of 3.1x and those between $10-$40 million received a median revenue multiple of 1.7x.