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The fintech sector reported 141 transactions in the first half of 2018, with a total disclosed transaction value of nearly $40 billion, more than 26% up from the prior half year.

The surge in transaction values is due to increasing consumer and enterprise acceptance of digital banking, payments and financial data services, driving big ticket transactions such as Blackstone’s acquisition of Thomson Reuters for $17.0 billion. That’s according to a study from advisory firm Hampleton Partners.

The digital payment and transaction processing segment accounts for two of the fintech sectors top five deals and continues to deliver high multiples. A prime example was Paypal making a $2.2 billion all-cash acquisition of Stockholm-based payments provider, iZettle, at 19x trailing revenues. In another landmark transaction, French payment services business, Worldline, agreed to by the payments unit of Swiss stock market operator, SIX Group, for $2.75 billion.

As for online and electronic payments processing, whilst the transactions were predominantly focused in the U.S market, the largest of these deals went to the $442 million sale of First Data’s card processing business in seven European countries to its Italian rival SIA.

Jo Goodson, managing director, Hampleton Partners, said: “Fintech M&A activity is coming of age after the initial surge in somewhat random deal-making amongst the very early innovators. Now, corporate and financial buyers alike are chasing larger and more targeted investments which can help streamline back-office operations, improve the digital customer experience and cut costs.”

by Alex Hamilton
Alex is Senior Reporter at IBS Intelligence, follow him on Twitter or contact him at: alexanderh@ibsintelligence.com
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