NEW YORK — January 7, 2021 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2020 mergers and acquisitions trend report for the Financial Technology and Information Industry.
The report analyzes M&A activity for the sector during 2020 and compares it with data covering 2018 and 2019. This market includes information and technology companies in Capital Markets, Payments, Banking, Insurance, and other related financial services.
Total deal volume in 2020 declined by 12 percent over 2019, from 562 to 497. On a half year basis, M&A activity remained about constant in 2nd Half 2020 over 1st Half 2020, from 250 to 247. Total deal value in 2020 fell by 50 percent over 2019, from $180.06 billion to $90.20 billion. However, this was still 84 percent higher than its 2018 level. On a half year basis, M&A value increased 22 percent in 2nd Half 2020 over 1st Half 2020, from $40.63 billion to $49.57 billion.
The Banking segment decreased 15 percent in volume. As for value, six of the top ten largest deals in 2020 occurred in the Banking segment. These six transactions, with a combined value of $36.22 billion, accounted for 41 percent of the industry’s total value during the past year.
Deal activity in the Payments segment rose three percent from 2019 to 2020. Notable segment transactions in 2020 included Wordline’s announced acquisition of Ingenico Group for $10.87 billion, which will form one of the largest payment services providers; SoFi’s announced acquisition of Galileo Financial Technologies, a financial services API and payments platform, for $1.2 billion; FinTech Acquisition Corp. III’s acquisition of Paya, an integrated payments and commerce solution provider, for $1.3 billion; and Corsair Capital LLC’s announced acquisition of MSTS, a global B2B payment and credit solutions provider, for $300 million.
M&A volume in the Capital Markets segment fell 32 percent over the past year. The most active acquirer in the Capital Markets segment during 2020 was Cboe Global Markets with five transactions: BIDS Trading, the operator of the BIDS Alternative Trading System (ATS); Trade Alert, a real-time alerts and order flow analysis company; MatchNow, broker-neutral dark pool that facilitates liquidity for buyers and sellers seeking anonymity for their transactions; Hanweck Associates, which offers real-time risk analytics on global derivatives markets; and FT Options, a portfolio management platform provider.
A copy of the FINANCIAL TECHNOLOGY AND INFORMATION INDUSTRY M&A REPORT FOR FULL YEAR 2020 is available at the Berkery Noyes website.