Q3 2018 Finance Industry Trends

Q3 2018 Key Highlights

• The largest transaction in the Capital Markets segment during Q3 2018 was State Street Corporation’s announced acquisition of Charles River Systems, a provider of investment management front office tools and solutions, for $2.6 billion.
• The highest value Payments deal in Q3 2018 was GrubHub’s announced acquisition of LevelUp, an analytics, loyalty, and rewards-based mobile platform that connects restaurants and guests, for $390 million.

Q3 2018 Key Trends

• Total transaction volume in the 1st 3 Quarters of 2018 improved by 14 percent over the 1st 3 Quarters of 2017, from 336 to 383.
• Total transaction value in the 1st 3 Quarters of 2018 rose by 15 percent over the 1st 3 Quarters of 2017, from $36.6 billion to $42 billion.
• The segment with the largest rise in volume in the 1st 3 Quarters of 2018 over the 1st 3 Quarters of 2017 was Payments with a 33 percent gain, from 30 to 40 transactions.

Multiples & Value Trends

• The median revenue multiple on a year-over-year basis increased from 2.6x to 3.0x.

Top Ten Deals Through Q3 2018

• The top ten deals by value have seen three new additions since our half year report, including two by SS&C Technologies in the Capital Markets segment: Intralinks Holdings for $1.5 billion and Eze Software for $1.5 billion.
• These three transactions, with an aggregate value of $5.6 billion, represented 13 percent of transaction value in the 1st 3 Quarters of 2018 and 60 percent of Q3 2018 transaction value.