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1st Half 2017 Finance Industry Trends
1ST HALF 2017 KEY HIGHLIGHTS
- The highest value deal in 1st Half 2017 was Vista Equity Partners’ announced acquisition of DH Corporation, a provider of technology solutions to financial institutions, for $3.49 billion, which Vista plans to combine with its portfolio company Misys. Misys and DH will operate under the new brand name Finastra.
- The most active acquirer during the half year period was Accenture with four industry acquisitions.
- Accenture acquired BeesPath’s ClosingBridge platform, which facilitates secure communications and file exchange for real estate finance transactions; Genfour, an automation service provider that works with clients in a variety of sectors, including insurance and banking; Infusion Development Corporation, a global software engineering, design and digital strategy firm with expertise in financial services, insurance and capital markets; and InvestTech Systems Consulting, a systems integration and technology consulting company that supports asset managers and investment service providers.
1ST HALF 2017 KEY TRENDS
- Total transaction volume in 1st Half 2017 increased by 19 percent over 2nd Half 2016, from 193 to 229.
- Total transaction value in 1st Half 2017 rose by 76 percent over 2nd Half 2016, from $10.66 billion to $18.76 billion.
- The median revenue multiple improved from 1.9x in 2nd Half 2016 to 2.3x in 1st Half 2017.
M&A Market Overview
Berkery Noyes tracked 1,103 Financial Technology and Information transactions between 2015 and 1st Half 2017, of which 260 disclosed financial terms, and calculated the aggregate transaction value to be $99.23 billion. Based on known transaction values, we project values of 843 undisclosed transactions to be $18.79 billion, totaling $118.01 billion worth of transactions tracked over the past two and a half years.
Disclosed median enterprise value multiples for all segments combined in this report during the last 30 months were 2.3x revenue and 12.5x EBITDA.