Berkery Noyes, the leading independent investment bank specializing in the information content and technology industries, today released its Third Quarter 2011 Mergers and Acquisitions Update for the Financial Technology & Information Industry.
The report analyzes merger and acquisition activity over the first three quarters of 2011 and compares it with activity in 2010. This market includes information and technology companies in capital markets, payments, banking, insurance and other related professional financial services.
According to Berkery Noyes research, the report showed third quarter transaction volume increased 31 percent over the second quarter from 55 to 72 transactions, while transaction value increased 31 percent as well.
The most active acquirers in the third quarter were Welsh, Carson, Anderson & Stowe, Accenture, GTCR, SunGuard Data Systems, TPG Capital, and Emblaze, each with two acquisitions. MacAndrews & Forbes Holdings’ announced merger with M&F Worldwide Corp. was the largest transaction for the third quarter, with an acquisition price of $2.3 billion.
Median EBITDA multiples from 2010 to the first nine months of 2011 went from 13.5 to 12.8, a 5 percent decrease, while median revenue multiples rose from 2.4 to 2.6, an 8 percent increase.
“The increase in the number of closed transactions in the third quarter is a direct result of an increasingly more active private equity market, overall pent-up supply of companies wishing to sell, and a strategic buyer market that continues to shore-up product suites and customer bases through acquisitions,” said managing director John Guzzo.
Berkery Noyes specializes in Mergers & Acquisitions advisory services, in addition to structuring debt and equity transactions in the $25 million to $500 million range. Unique among investment banking firms, Berkery Noyes combines independent strategic research and industry intelligence with senior information technology banking expertise. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and more current information. The firm’s research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.
A copy of the THIRD QUARTER 2011 FINANCIAL TECHNOLOGY & INFORMATION INDUSTRY MERGERS & ACQUISITIONS UPDATE is available at the Berkery Noyes website.