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.