Full Year 2023 Finance Industry Trends

2023 KEY HIGHLIGHTS

At $11.7 billion, GTCR’s announced acquisition of Worldpay, a leading payments technology company with unique capability to power global omnicommerce, was the largest transaction of 2023 in the Financial Technology & Information industry. Along with Worldpay, four of the top ten deals were in the Payment segment.

There were 89 financially sponsored transactions in 2023, with an aggregate value of $11.48 billion, representing 23 percent of the total volume and 28 percent of the total value, respectively.

2023 KEY TRENDS

Total transaction volume in 2023 decreased 21 percent over 2022, from 495 to 393.

Total transaction value in 2023 decreased by 16 percent over 2022, from $49 billion to $41 billion.

The median revenue multiple increased from 3.6x in 2022 to 4.2x in 2023.

M&A MARKET OVERVIEW

Berkery Noyes tracked 1,403 Financial Technology and Information transactions between 2021 and 2023, of which 271 disclosed financial terms, and calculated the aggregate value to be $106.95 billion. Based
on known transaction values, we project values of 1,132 undisclosed transactions to be $30.68 billion, totaling $137.63 billion worth of transactions tracked over the past three years.

Disclosed median enterprise value multiples for all segments combined in this report during the last 36 months were 3.5x revenue and 15.8x EBITDA.

Over the past three years, deals in the $10-$20 million range received a median enterprise value multiple of 2.1x revenue, compared to 4.7x revenue for those in the $160 million and above range.