January 23, 2013 PAYMENTS M&A LIFTS THE FINTECH INDUSTRY TO A STRONG 2012

Berkery Noyes’ report covering M&A in the Financial Technology and Information Industry for Full Year 2012 has been released.

Transaction volume underwent a seven percent increase over the past twelve months, from 282 transactions in 2011 to 302 transactions in 2012. Moreover, transaction value rose from $19.84 billion to $30.23 billion, an increase of 52 percent.

IntercontinentalExchange’s announced acquisition of NYSE Euronext for $10.19 billion was the largest 2012 transaction covered in the report. Regulators blocked several bids for NYSE Euronext in 2011, including a proposed merger with Deutsche Börse Group for $12.39 billion. The number of transactions in the Capital Markets segment decreased nine percent relative to 2011, which was similar to its 2010 volume.

“Algo trading software solutions present an opportunity for firms to improve execution quality and achieve higher commissions,” said Peter Ognibene, Managing Director at Berkery Noyes. “There is also a push towards more transparency around high frequency trading to prevent flash crashes and similar incidents. Likewise, with the transformation of the derivatives market by regulations such as the Volcker rule, technology companies in the capital markets sector are still facing some elements of lingering uncertainty.” Ognibene continued, “Businesses that are taking steps to adapt to the changing capital markets landscape are well situated to continue generating a healthy level of interest from acquirers.”

M&A activity in the Payments segment improved at a robust pace in 2012, rising 47 percent from 2011. With this growth, Payments had a slight edge over Capital Markets as the most active segment in the report on a year-to-year basis. In addition, four of the industry’s top ten highest value deals fell within the Payments segment, compared to two in 2011. These four transactions, with a combined value of $5.83 billion, represented 19 percent of the industry’s 2012 aggregate deal value.