August 26, 2013 M&A ACTIVITY RAPIDLY RISING IN THE INSURANCE SEGMENT OF THE FINTECH INDUSTRY

Berkery Noyes has released its Financial Technology report for half year 2013. Deal volume underwent an eight percent decrease in first half 2013. Transaction value fell 42 percent over the past six months, from $18.99 billion to $10.95 billion. Both volume and value throughout the past two-and-a-half years reached their respective peaks in second half 2012. When compared to first half 2012, volume increased seven percent and value dropped 11 percent in first half 2013.

The Capital Markets segment experienced a slight uptick in volume on a half year basis, from 49 to 54 transactions. Meanwhile, the segment with the largest half-to-half year increase in volume was Insurance, which rose 42 percent in first half 2013.

M&A activity in the Payments segment declined 37 percent during first half 2013. This followed a 36 percent increase between first and second half 2012, which was the segment’s highest point over the past two-and-a-half years. Upon further examination, volume in the Payments segment in first half 2013 was close to its historical average as recorded over the past 30 months.

“Whether it is taking advantage of big data, addressing holes in data security, or adapting to new regulations, payments companies are seeking a technological advantage over their competitors,” said Peter Ognibene, Managing Director at Berkery Noyes.

The industry’s highest value transaction in first half 2013, Fidelity National Financial’s announced acquisition of Lender Processing Services for $3.83 billion, occurred in the Banking segment.