NEW YORK — January 14, 2023 — Berkery Noyes, an independent mid-market investment bank, today released its full year 2022 mergers and acquisitions trend report for the Financial Technology and Information Industry. 

The report analyzes M&A activity for the sector during 2022 and compares it with data covering 2020 and 2021. This market includes information and technology companies in Capital Markets, Payments, Banking, Insurance, and other related financial services.

Total deal volume in 2022 decreased four percent over 2021, from 513 to 491. Total deal value in 2022 increased by five percent over 2021, from $46.40 billion to $48.61 billion.

The median revenue multiple shifted slightly from 3.1x in 2021 to 3.6x in 2022.

Over the past three years, deals in the $10-$20 million range received a median enterprise value multiple of 1.8x revenue, compared to 2.9x revenue for those in the $40-$80 million range and 4.6x revenue for those in the $160 million and above range.

M&A volume in the Payments segment increased six percent over the past year. Three of the overall industry’s top five highest value transactions during 2022 occurred in the segment. Along these lines were:

  • Global Payments’ announced acquisition of EVO Payments, Inc., a global provider of payment technology integrations and acquiring solutions, for $4 billion;
  • Madison Dearborn Partners’ announced acquisition of MoneyGram International, a digital P2P payments solution provider, for $1.7 billion; and
  • EQT’s acquisition of Billtrust, a B2B accounts receivable automation and integrated payments provider, for $1.5 billion.

Notable transactions in the Banking segment in 2022 included Intercontinental Exchange’s announced acquisition of Black Knight, Inc., a software, data and analytics company that serves the housing finance continuum, including real estate data, mortgage lending and servicing, as well as the secondary markets, for $16.3 billion; Private equity firms Centerbridge and Bridgeport’s acquisition of Computer Services, Inc., a provider of end-to-end fintech and regtech solutions, for $1.5 billion; and SoFi Technologies’ announced acquisition of Technisys, a cloud-native, digital multi-product core banking platform, for $1.1 billion.

High profile Insurance transactions included Voya Financial’s acquisition of Benefitfocus, a benefits administration technology company that serves employers, health plans and brokers, for $608 million; LexisNexis Risk Solutions’ acquisition of Flyreel, a Denver-based property insurtech that uses artificial intelligence (AI) and machine learning to enable self-service property inspections; and Harris’ acquisition of Agency Software, Inc., a property & casualty insurance software provider.

As for other select markets covered in the report, acquisition activity in the Capital Markets segment increased seven percent on an annual basis. Notable segment transactions in 2022 included Clearlake Capital Group and Motive Partners’ acquisition of the BetaNXT, a provider of management technology and outsourcing solutions, for $1.1 billion; Pitchbook Data’s announced acquisition of Leveraged Commentary & Data, a provider of news, research, data, insights, and indexes for the leveraged finance market, for $650 million; and London Stock Exchange Group’s announced acquisition of MayStreet, a market data solutions provider.

A copy of the FINANCIAL TECHNOLOGY AND INFORMATION INDUSTRY M&A REPORT FOR FULL YEAR 2022 is available at the Berkery Noyes website.