July 23, 2012 FINANCIAL TECHNOLOGY M&A: INDUSTRY MULTIPLES ON THE RISE; VOLUME IN THE PAYMENTS SEGMENT REMAINS STRONG

Berkery Noyes has issued its first half 2012 trend report covering mergers and acquisitions (M&A) in the Financial Technology Industry.

The Payments segment experienced a 30 percent volume increase compared to first half 2011. The most active associated buyer during the last two and a half years was VeriFone, a provider of point-of-sale electronic payments solutions, with six transactions.

“Demand in emerging markets, regulations, and mobile payments technology are heavily influencing growth projections,” stated Peter Ognibene, Managing Director at Berkery Noyes. “There are several other important trends occurring as well. For one thing, there’s more competition between the traditional credit card model and peer-to-peer payments schemes for online transactions. Secondly, businesses are adopting software and centralized gateways that improve the efficiency of e-commerce transactions management. There’s also strong demand for technologies to comply with requirements around digital security, identity verification, and fraud prevention.”