FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019 · FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019 May 8, 2019S May 28, 2019 NG Enterprise Value: $26.2B NS April 2, 2019 Capital Raised:

FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 1


[email protected]

Office: (415) 217-3418

O B S E R V A T I O N S O N K E Y F I N T E C H T R E N D S

• The financial technology market continues to attract strong interest from financial investors and strategic acquirers alike, with 700+ M&A transactions completed in the last 12 months globally

• Consolidation has accelerated as the sector matures and is expected to continue as fintech market leaders reach scale and look to pursue inorganic add-on opportunities, or become part of larger entities themselves

• On the heels of two other blockbuster payment processing deals in Q1’19, Global Payments and TSYS announced they will merge as the payment processing landscape continues to undergo transformative change; the largest players continue to jockey for market share of a global market that is migrating further online and into industry-specific software-driven environments

• The announcement of Libra—a digital currency spearheaded by Facebook and in collaboration with a number of fintech leaders, including Mastercard, PayPal, and Visa—has dominated fintech headlines and represents perhaps the most mainstream introduction of blockchain technology

• Technology companies are increasingly seeking to integrate billing and payments directly into their solutions to both improve end-user experience and to capture incremental economics from payment processing

• Corporations globally are eager to optimize B2B transactions and are investing in cloud-based software solutions that improve procurement, APautomation, supply chain finance, and settlement activities, as well as working capital exchanges that enhance profitability

• The banking and insurance industries continue to evolve as financial institutions adopt software solutions to defend against competitive unbundled offerings, improve operational workflows, and enhance client experience across business lines

• Consumer adoption of digital and mobile payment and financial services solutions has accelerated globally as the proliferation of smartphones, digital currency, and digital native banks make online transaction increasingly frictionless, secure, and convenient

H A R R I S W I L L I A M S ( “ H W ” ) A S A F I R MT E C H N O L O G Y , M E D I A & T E L E C O M ( “ T M T ” ) G R O U P

• Founded in 1991

• 300+ professionals across eight offices globally

• 150+ closed transactions in the last 24 months

• 21st record year in 2018

• 10 industry groups

• 35+ professionals across Boston, San Francisco, and London

• 42 closed transactions in the last 24 months

Managing [email protected]

Office: (415) 217-3411


Office: (617) 654-2117


Office: +44 (0) 20 7518 8901


Office: (617) 654-2133

[email protected]: +44 (0) 20 7518 8909

[email protected]

Office: (617) 654-2115

2017

2017

• Architecture, Engineering, and Construction

• eCommerce and Retail Software• Education Technology• Energy Technology• Facilities and Real Estate

Technology• Financial Technology• Government Technology• Healthcare IT• Industrial and Supply Chain

Software

• Compliance Software• CRM and Member Management

Software• Data and Analytics• Enterprise Software• Human Capital Management• Infrastructure and Security

Software• IT and Tech Enabled Services• Managed Services, Hosting, Data

Center Solutions• Online Marketing, Data, and

Research

[email protected]

Office: (415) 217-3420

[email protected]

Office: (617) 654-2122

mailto:[email protected]











has received a majority

investment from

has received a majority

investment from

Provider of youth sports management software and integrated payments solutions

Provider of integrated payments and member management solutions for faith-based and non-profit organizationshas been

acquired by

Provider of integrated SaaS, insurance, and payments solutions for residential and commercial property managers

has been acquired by

Provider of integrated SaaS civic engagement and payment solutions for government entities

&

S E L E C T R E C E N T H W F I N A N C I A L T E C H N O L O G Y T R A N S A C T I O N S

Select Market Participants Select Market Participants Select Market Participants

Solutions focused on supporting B2C and B2B

payments and financial activity, and serving the financial needs

of enterprises of all sizes

Solutions focused on delivering improved financial and payment experiences,

personal wealth management, and access to consumer loans

Solutions focused on serving the specific operational and compliance needs of banks, insurance companies, and

asset managers

PAYMENTS B2B TRANSACTIONS FINANCIAL SOFTWARE BANKING INSURANCE ASSET MGMT. / TRADING PAYMENTS PERSONAL FINANCE

has acquired

Provider of a SaaS platform serving single family and condo high rise associations with unified property management, resident portals, accounting, payments, and security solutions

INVESTING


Provider of member management software and payment processing solutions for non-profit organizations, camps, and sports leagues

has received a strategic

investment from

Provider of next generation integrated digital government software and payment solutions, designed to improve government operations, revenue collection, and citizen engagement


Provider of eLearning, workforce management, and compliance solutions to enterprises and professionals across financial services, healthcare, and real estate


Provider of integrated software, data and analytics solutions to the global energy market including financial services, capital markets, and trading and risk professionals


Provider of mental and behavioral health practice management, revenue cycle management, billings, and integrated payment processing solutions&


FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019P

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May 28, 2019

Enterprise Value: $26.2B

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April 2, 2019

Capital Raised: $88M

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Enterprise Value: NA

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Enterprise Value: $2.0B

Enterprise Value /

LTM Rev. LTM EBITDA 2019P EBITDA

11.2x 28.1x 25.1x

Enterprise Value /


6.2x 21.0x 17.9x

Enterprise Value /


3.4x 10.2x 10.2x

Enterprise Value /


6.8x 20.6x 17.7x

Enterprise Value /


7.9x 19.1x 20.2x

Enterprise Value: £247

Payments: Looking to the Future – Instant, Accessible, Ubiquitous

Introducing Libra

Amex Teams With SAP Ariba For End-To-End B2B Payments

Machine Learning Trends Transforming Finance

Technology and Analytics Driving HR Success

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S&P 500 Payment Networks

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S&P 500 Data & Compliance

Payment networks that facilitate next generation payment channels continue to benefit from accelerating migration of payments to digital environments

Payment networks are increasingly focused on enhancing their solution offering to deliver fast, frictionless, and secure payment processing as they seek to grow across end-markets and geographies

The traditional payment processing landscape is undergoing significant change as incumbents seek to maintain market share through consolidation and expansion of service and technology capabilities that improve customer experience

As payments continue to shift to digital platforms, software providers are keen to improve their competitive position by incorporating processing functionality directly into their solutions

B2B payments continue to be a key focus area for businesses globally as supply chain management can greatly benefit from software, driving demand for solutions that improve operations and reduce payment friction

Businesses continue to adopt solutions that improve collections and settlement, increase transparency across their entire ecosystem, and improve regulatory compliance and documentation

As financial services become increasingly digital, industries continue to implement stringent compliance requirements that are driving the adoption of software solutions to automate data collection and meet compliance demands

Heightened awareness of and focus on privacy and data protection in the digital age is driving the need for innovative solutions that offer security and improved visibility

Enterprises across all markets continue to transition from legacy offerings to cloud-based solutions that improve operational efficiency and are capable of delivering solutions to evolving industries and changing work environments

Incumbents and challengers alike continue to be acquisitive of solutions that expand their TAM and enable them to offer more integrated workforce management and benefits administration across industries

https://www.swift.com/future-of-payments

https://libra.org/en-US/white-paper/#introduction

https://www.pymnts.com/news/partnerships-acquisitions/2019/american-express-sap-ariba/

https://www.refinitiv.com/perspectives/ai-digitalization/the-machine-learning-trends-transforming-finance/

https://www.paychex.com/newsroom/news-releases/2019-paychex-pulse-of-hr-survey



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April 9, 2019

Enterprise Value: $850M

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4.9x 21.6x 19.4x

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4.3x 17.4x 16.1x

Enterprise Value /


7.5x 18.6x 15.5x

Enterprise Value /


5.1x 27.0x 18.0x

Price /

2019E Book Value 2020P Book Value

1.3x 1.2x

June 11, 2019

June 21, 2019


June 3,2019


May 29, 2019


Capital Raised: $55MBank Investments in Technology Not Yet Driving Revenue Growth

How Insurance Companies Are Coping with Digital Transformation

JPMorgan Launches You Invest Robo Advisor

Facebook is Discontinuing P2P Payments in the UK and France

Fintech Newcomers Reshape Japan’s Lending Landscape

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S&P 500 Banking

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S&P 500 Asset Management & Trading

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S&P 500 P2P Transfers

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Dec-14 Dec-15 Dec-16 Dec-17 Dec-18

S&P 500 Marketplace Lending

Traditional financial institutions continue to acquire, partner, and implement next-generation technology solutions across back-, middle-, and front-office functions to compete with specialized software upstarts

Digital-native banking platforms that offer consumers with flexible and convenient products are gaining prominence, putting additional pressure on incumbents, particularly as consumer loyalty remains low

Insurance carriers are increasingly focused on digitizing the customer journey to enable personalized and contextual interactions with policyholders and prospects across all channels and at a lower cost

Similar to the disruption occurring in the banking sector, digital-native and vertical-specific platforms continue to attract customers and put increasing pressure on traditional insurance providers

AMT organizations continue to seek software solutions that enhance research capabilities through data and analytics, improve liquidity and access to capital, and streamline investor relations functions and customer engagement

Wealth managers and financial advisors continue to use partnerships and M&A to fend off online investment platforms and robo-advisors

Consumer utilization of peer-to-peer payment solutions—especially those facilitated through mobile platforms—has given rise to a number of innovative offerings and has forced incumbents to acquire or launch frictionless solutions to keep pace

Growing demand for peer-to-peer transfers continues to drive down costs as solutions providers of all scale compete to monetize rapidly growing payment volumes

Persistently low cost of capital has enabled traditional lenders to maintain competitiveness, forcing challengers to find unique ways to differentiate their offerings such as rapid and differentiated credit decisioning, alternative funding sources, and new product offerings

Marketplace lending has become increasingly specialized as niche players offering vertical specific solutions have successfully attracted new customers, despite being in the early stages of maturity

https://www.reuters.com/article/us-banks-digital-idUSKCN1TL0QA?utm_medium=email&utm_source=fintechweeklycom

https://knowledge.wharton.upenn.edu/article/rgax-ceo-digital-transformation-insurance-industry/

https://www.cnbc.com/2019/07/10/jpmorgan-creates-robo-adviser-you-invest-portfolios-with-free-etfs.html

https://techcrunch.com/2019/04/16/facebook-is-discontinuing-p2p-payments-in-messenger-in-the-uk-and-france-on-june-15/

https://asia.nikkei.com/Business/Business-trends/Fintech-newcomers-reshape-Japan-s-lending-landscape?utm_medium=email&utm_source=fintechweeklycom



• Insurity is a leading cloud-based software platform used by the property and casualty insurance industry, offering streamlined policy administration, data & analytics, claims, and billing functionalities.

• Insurity’s platform is used by over 250 insurance clients, spanning the largest global carriers and MGAs to regional players.

• The recapitalization by GI Partners will provide capital for Insurity to continue expanding its solutions platform and develop enhanced offerings in the global insurance marketplace.


Rev: NA EV / EBITDA: NA

EV / Rev: NA

Insurance

• RPM Technologies is a provider of enterprise wealth management software solutions and services for banks, brokers,dealers, and asset managers.

• The company offers scalable and mobile software solutions that improve client onboarding, streamline workflows, andintegrate with existing systems, to over 15 million customers.

• The acquisition builds on Broadridge’s existing wealth management business and enhances its solution set for retailbanking.


Rev: $62.5M EV / EBITDA: NA

EV / Rev: 8.0 x

• InstaMed is a cloud-based healthcare payments provider designed to simplify medical billing and payment processingby connecting providers, payers, and consumers on one platform.

• The company processed over $94B in payments in 2018 and offers solutions to address a variety of pain-points acrossthe healthcare landscape, including eligibility, patient engagement, and revenue cycle management.

• JP Morgan will incorporate InstaMed into its wholesale payments division, which moves over $6T daily, and expects torealize significant revenue synergies through selling into its large and well-established corporate client base.



EV / Rev: NA

Asset Management

• Black Mountain is a workflow and data solutions provider to alternative asset managers, with a focus on highlyconfigurable interfaces capable of integrating with a variety of systems and leveraging disparate data types.

• The company serves financial institutions that represent over $2 trillion in assets under management (AUM), including50 of the top 100 Collateralized Loan Obligation (CLO) managers, leading private debt funds, and other alterative assetmanagers.

• Vista’s investment will facilitate continued growth and product development aimed at enhancing Black Mountain’s dataaggregation, process management, and business reporting capabilities.



EV / Rev: NA

Asset Management

• Transactis develops and provides SaaS-based B2B and B2C bill presentment, payment, and processing for both largeand small enterprises globally.

• The company previously partnered with Mastercard in 2018 and provided enhanced messaging, data, and transparencyto Mastercard’s Bill Pay Exchange customers.

• The acquisition supports Mastercard’s efforts to streamline and modernize the customer billing experience across avariety of use cases, including telecom, utility, rent, credit card, and other personal bills.



EV / Rev: NA

Payment Processing

Payment Processing



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• The 10 most active strategic fintechconsolidators have acquired over 102 companies since 2015.

• This group completed 11 fintech acquisitions in the first half of 2019, with deal volume accelerating through Q2.

MOST ACTIVE STRATEGIC ACQUIRERS OF FINTECH ASSETS BY VOLUME2

GLOBAL FINANCIAL SOFTWARE M&A ACTIVITY2

• Across financial software, there were 166 M&A transactions closed in Q1 2019, with private equity transactions representing 36% of total deal volume.

• Q2 2019 continued the trend of transformative acquisitions in payment processing as Global Payments followed Fiserv and FIS’ acquisitions of First Data and Worldpay, with its own acquisition of TSYS.

40 42 40 2944 41 35

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Q1-16 Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19 Q2-19



–R E P R E S E N T A T I V E E N T E R P R I S E & C O M M E R C I A L S O L U T I O N P R O V I D E R S

P A Y M E N T SO T H E R E & C F I N A N C I A L

S O F T W A R E

S E E N E X T P A G E F O R V E R T I C A L

P A Y M E N T S M A R K E T M A P D E T A I L

To receive the latest Financial Technology market maps, please contact HW at [email protected]




–R E P R E S E N T A T I V E V E R T I C A L L Y - F O C U S E D I N T E G R A T E D S A A S A N D P A Y M E N T S P R O V I D E R S

Note: Logos are representative of vertical participants and not comprehensive.

• Emergence of digital payment gateways and card not present transactions.

• Increasing subscription and recurring payments in B2C and B2B environments.

• Time sensitive and/or convenience driven.

• Payment processing bundled with software-based sale.

• Regulatory specific reporting and compliance.

• Meaningful payment processing volumes.

• Software vendor addition of payment facilitator (PayFac) models.





Visa V $389,844 $379,274 99.2% 30.7% 130.9% 13.3% 10.0% 67.2% 18.3x 16.7x 27.3x 23.6x 33.6x

Mastercard MA $269,822 $270,196 98.0% 34.2% 192.6% 19.6% 12.2% 59.5% 18.0x 16.1x 30.3x 26.5x 42.0x

American Express AXP $131,169 $103,082 97.7% 27.3% 113.2% 9.2% 17.9% NA 3.5x 3.0x NA NA 13.8x

Discover Financial Services DFS $36,844 $25,118 94.0% 10.6% 51.7% 4.9% 48.9% NA 4.8x 3.2x NA NA 9.1x

Fidelity National Information Services FIS $48,794 $39,703 97.9% 16.1% 72.7% (2.8%) 0.4% 28.3% 5.8x 5.8x 20.5x 14.8x 44.4x

Fiserv FISV $41,580 $35,775 98.8% 23.3% 74.0% 2.2% 6.1% 32.6% 7.1x 6.7x 21.9x 17.7x 30.8x

Alliance Data Systems ADS $27,926 $7,341 56.0% (40.5%) (25.2%) 0.9% NA 23.9% 3.6x 4.8x 15.0x 18.8x 10.0x

Global Payments GPN $30,241 $25,091 98.0% 45.6% 129.5% (15.3%) 32.7% 39.1% 9.0x 6.8x 23.0x 18.4x 48.1x

Cielo BOVESPA:CIEL3 $7,128 $4,767 37.4% (58.7%) (78.8%) (13.8%) (4.5%) 38.6% 2.4x 2.5x 6.1x 8.5x 7.7x

Euronet Worldwide EEFT $8,645 $8,742 99.7% 101.6% 146.3% 12.6% 12.3% 18.6% 3.4x 3.0x 18.4x 14.0x 33.5x

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VALUATION1

($ in millions)

B 2 B T R A N S A C T I O N S

P A Y M E N T S

F I N A N C I A L S O F T W A R E

Automatic Data Processing ADP $72,125 $71,956 97.0% 23.2% 88.0% 8.2% 5.4% 23.4% 5.2x 4.9x 22.3x 20.2x 44.0x

Paychex PAYX $29,640 $29,567 93.1% 21.1% 48.2% 9.9% 15.0% 41.1% 8.5x 7.4x 20.6x 18.2x 32.4x

Paycom Software PAYC $13,006 $13,039 97.1% 126.7% 461.3% 30.8% 27.1% 33.7% 23.0x 18.1x NM 43.7x 80.9x

Paylocity PCTY $4,831 $4,970 90.4% 58.6% 134.1% 25.1% 22.1% 10.4% 11.6x 9.5x NM 32.9x 93.2x

WageWorks WAGE $1,280 $2,025 89.4% 1.4% (9.6%) (0.8%) (0.7%) 18.6% 2.7x 2.7x 14.6x 10.5x 46.4x

Thomson Reuters TSX:TRI $33,552 $32,351 95.1% 46.3% 51.2% 3.9% 7.5% 19.6% 6.1x 5.7x 31.1x 23.1x NM

Moody's MCO $42,083 $37,031 97.0% 14.5% 119.2% 5.7% 5.3% 47.5% 9.5x 9.0x 20.0x 18.8x 26.9x

Experian LSE:EXPN $30,579 $27,328 96.8% 24.1% 72.0% 6.2% 4.6% 32.4% 6.4x 6.1x 19.7x 18.1x 31.2x

TransUnion TRU $17,755 $13,766 92.5% 2.8% 132.5% 19.8% 13.0% 35.4% 7.7x 6.8x 21.7x 17.3x 45.8x

Equifax EFX $19,138 $16,340 97.5% 7.2% 10.9% 1.5% 1.6% 21.8% 5.6x 5.5x 25.7x 16.1x 48.0x

As of June 28th, 2019

Western Union WU $11,362 $8,567 95.6% (2.0%) 6.4% 1.2% (5.0%) 24.6% 2.0x 2.1x 8.3x 8.9x 9.9x

Open Text Corporation OTEX $12,933 $11,080 97.3% 17.8% 42.2% 8.0% 4.2% 29.8% 4.5x 4.4x 15.3x 11.4x 39.6x

Cass Information Systems CASS $527 $704 78.2% (16.0%) 28.1% 10.6% NA 33.8% 3.5x NA 10.3x NA 23.3x

Basware HLSE:BAS1V $338 $298 43.7% (49.6%) (46.1%) (9.6%) 3.4% 4.7% 2.1x 2.0x 44.7x NM NM

FleetCor Technologies FLT $27,744 $24,207 99.1% 33.2% 101.7% 8.2% 8.5% 55.2% 11.4x 10.5x 20.6x 18.1x 28.0x

WEX WEX $11,809 $9,000 98.1% 9.1% 144.3% 19.5% 16.4% 36.7% 7.9x 6.8x 21.6x 16.0x 49.7x



–

SELECT RECENT M&A TRANSACTIONS1

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2

06/27/2019 WageWorks HealthEquity Provider of tax-advantaged programs in the United States. $2,000

06/10/2019 Wave Financial H&R Block Provider of cloud-based integrated software and tools for small businesses. $405

06/06/2019 Complus Data Innovations Passport Parking Provider of parking enforcement software. NA

05/27/2019 Total System Services Global Payments Provider of payment processing, merchant, and related payment services. $26,213

05/24/2019 Handshake Shopify Provider of an online sales order application. NA

05/22/2019 SafeCharge International Group Nuvei Provider of omnichannel payment services and risk management solutions. $768

05/15/2019 InstaMed Communications JPMorgan Chase & Co. Provider of a healthcare payments network, connecting providers, payers, and consumers. $500

05/08/2019 Earthport Visa Provider of cross-border payment services for enterprises and banks. $287

05/02/2019 Transactis Mastercard Provider of Software-as-a-Service based electronic bill presentment and payment solutions. NA

05/02/2019 NxGen Payscape Provider of credit card processing and payment services. NA

05/01/2019 Engage PEO Lightyear Capital Provider of outsourced benefits, worker’s compensation, payroll, and risk management services. NA

04/30/2019 Party Center Software Fullsteam / Aquiline Capital Partners Provider of an online booking and facility management software. NA

04/24/2019 PayNet Equifax Provider of an online platform that provides credit ratings on small businesses. NA

04/18/2019 Payzone First Data Provider of electronic payments systems and software. $117

04/07/2019 Resy American Express Provider of an online reservation platform for restaurant booking. NA

06/27/2019 Restaurant365 ICONIQ Capital Provider of cloud-based restaurant management software. $88

06/07/2019 Depop General Atlantic, HV Holtzbrinck Ventures Provider of mobile application allowing users to buy, sell, discover and explore things. $62

06/04/2019 Biz2Credit WestBridge Capital Provider of an online credit marketplace intended to finance small business. $52

06/03/2019 WorldRemit Leapfrog Investments, Accel, TCV Provider of an online digital money transfer platform. $175

05/30/2019 BigTime Software Wavecrest Growth Partners, Migration Capital Provider of cloud-based software for professional services firms. $14

05/22/2019 Instawork Spark Capital, GV, Burst Capital Provider of on-demand staffing app for gig workers and hospitality businesses. $18

05/21/2019 Marqeta Coatue Management Provider of a payment platform to offer an open API issuer payment processor. $260

05/21/2019 Ivalua Ardian, Tiger Global Management Provider of web based spend management software services. $60

05/21/2019 Motionsoft Edison Partners, Route 66, Roofdeck Partners Provider of software and business management services to fitness clubs. $17

05/12/2019 Greensill Capital SoftBank Group Provider of working capital and supply chain solutions. $800

04/24/2019 Wirecard SoftBank Group Provider of outsourcing and white label solutions for electronic payments worldwide. NA

04/03/2019 Rippling Kleiner Perkins Provider of automation software for human resource departments. $45

04/02/2019 Bill.com Franklin Templeton, Fleetcor Provider of a cloud-based payment management plafform. $88

04/02/2019 Perch FirstMark Capital Provider of an online platform for home buying and selling. $220

04/02/2019 ezCater Lightspeed Venture Partners, GIC Provider of an online marketplace for business catering. $150



–R E P R E S E N T A T I V E I N S T I T U T I O N A L S O L U T I O N P R O V I D E R S





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VALUATION1

($ in millions)

B A N K I N G

I N S U R A N C E

A S S E T M A N A G E M E N T & T R A D I N G

Temenos SWX:TEMN $12,974 $12,414 94.6% 22.1% 266.9% 14.3% 17.6% 28.8% 15.4x 13.1x NM 34.0x 64.6x

Jack Henry & Associates JKHY $10,339 $10,339 81.8% 3.5% 58.5% 9.7% 0.2% 30.7% 6.5x 6.5x 21.1x 19.9x 35.9x

CoreLogic CLGX $5,172 $3,375 75.3% (19.4%) 12.4% (3.4%) (6.2%) 21.8% 2.9x 3.1x 13.3x 11.0x 25.0x

ACI Worldwide ACIW $4,363 $3,797 95.8% 39.2% 83.4% (1.4%) 30.6% 16.7% 4.3x 3.3x 25.9x 11.9x 55.7x

Oracle Financial Services Software BSE:532466 $3,486 $3,945 68.1% (23.9%) (8.4%) (1.9%) 8.7% 41.0% 5.0x 4.6x 12.3x 10.7x 22.5x

Q2 Holdings QTWO $3,622 $3,567 96.0% 33.0% 187.5% 24.3% 28.9% NM 15.0x 11.7x NM NM NM

Bottomline Technologies EPAY $1,948 $1,926 59.7% (12.8%) 110.8% 13.3% 4.6% 10.3% 4.7x 4.5x 45.8x 19.4x 132.5x

Guidewire Software GWRE $7,595 $8,294 93.0% 14.9% 73.0% 29.4% 0.9% 8.8% 10.3x 10.2x NM 47.5x 208.1x

Ebix EBIX $2,266 $1,533 56.4% (34.0%) 8.6% 36.8% 23.8% 32.7% 4.6x 3.7x 13.9x 10.6x 16.7x

Sapiens International SPNS $871 $831 95.5% 70.6% 45.7% 7.6% 10.5% 13.1% 3.0x 2.7x 22.9x 16.1x 55.2x

RELX LSE:REL $55,094 $47,093 97.4% 15.2% 40.0% (3.8%) 4.7% 30.3% 5.8x 5.5x 19.0x 15.3x 19.6x

Thomson Reuters TSX:TRI $33,552 $32,351 95.1% 46.3% 51.2% 3.9% 7.5% 19.6% 6.1x 5.7x 31.1x 23.1x NM

Moody's MCO $42,083 $37,031 97.0% 14.5% 119.2% 5.7% 5.3% 47.5% 9.5x 9.0x 20.0x 18.8x 26.9x

SS&C Technologies Holdings SSNC $22,941 $14,575 85.1% 11.1% 111.3% 104.2% 37.6% 32.2% 6.7x 4.9x 20.9x 12.2x 151.6x

MSCI MSCI $22,345 $20,220 97.0% 45.1% 223.5% 12.5% 7.8% 53.2% 15.6x 14.5x 29.3x 26.4x 35.1x

FactSet Research Systems FDS $11,182 $10,958 93.8% 45.1% 87.3% 8.7% 5.8% 33.3% 8.1x 7.7x 24.5x 21.4x 34.6x

Fair Isaac Corporation FICO $9,849 $9,103 98.0% 63.6% 193.8% 12.4% 9.2% 23.2% 9.3x 8.5x 39.9x 27.8x 56.0x

Broadridge Financial Solutions BR $15,711 $14,829 92.4% 11.5% 102.9% 0.6% 3.2% 18.8% 3.6x 3.5x 19.3x 16.1x 28.1x

Envestnet ENV $3,850 $3,546 94.1% 21.7% 112.1% 18.8% 11.5% 10.7% 4.7x 4.2x 44.2x 19.9x NM




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06/21/2019 Equian UnitedHealth Group Provider of insurance claim management services. $3,200

06/21/2019 Insurity GI Partners Provider of software solutions and services to the commercial and specialty insurance market. NA

06/21/2019 Capital Confirmation Thomson Reuters Provider of an online audit confirmation platform for auditors and accounting firms. NA

06/07/2019 FinanceGenius Alogent Provider of cloud-based lending software suite that automates consumer lending. NA

06/06/2019 Vitech Systems Group CVC Capital Partners Provider of cloud-based administration software solutions. NA

06/04/2019 Certain Businesses of Chronos Solutions Covius Provider of document management, loan modification and business process workflow services. NA

06/03/2019 Green Street Advisors Welsh, Carson, Anderson & Stowe Provider of research, trading, and consulting services for real estate investment trusts. NA

05/29/2019 DBRS Morningstar Provider of credit rating services. $669

05/29/2019 Black Mountain Systems Vista Equity Partners Provider of software solutions for data aggregation and business reporting. NA

05/21/2019 RPM Technologies Broadridge Financial Solutions Provider of wealth management solutions to banks, insurance companies, credit unions. $300

05/16/2019 VUE Software Vertafore, Bain Capital, Vista Equity Provider of insurance distribution platform. NA

04/18/2019 Ohpen NPM Capital N.V. Provider of cloud-based core banking software. NA

04/10/2019 TechCanaryoration Applied Systems Provider of a cloud-based insurance sales and service productivity platform for agencies. NA

04/09/2019 Axioma Deutsche Börse AG Provider of markets portfolio optimization solutions for portfolio managers. $850

04/02/2019 Barracuda FX Broadway Technology Provider of foreign exchange trading and risk management software solutions. NA

06/25/2019 MX Battery Ventures, H.I.G. Growth Provider of a data platform intended to improve financial management. $100

06/25/2019 oneZero Financial Lovell Minnick Partners Provider of foreign exchange trading software and solutions. NA

06/25/2019 Open Financial Technologies Tiger Global Management Provider of a digital banking platform for small to mid-sized businesses. $30

06/24/2019 Blend General Atlantic, Temasek Provider of a machine-learning based digital lending platform. $130

06/20/2019 ActiveViam Guidepost Growth Equity Provider of a business intelligence and analytics platform. NA

06/06/2019 Synapse Andreessen Horowitz, Trinity Ventures Provider of banking financial service software for banks and fintech companies. $33

05/20/2019 Trumid Singapore Exchange, Arbor, Hillhouse Capital Provider of an electronic trading platform. $60

05/07/2019 VTS Brookfield Ventures Provider of a data and analytics platform for landlords, brokers, and tenants. $90

05/06/2019 Carta Andreessen Horowitz Provider of an ownership management and compliance platform. $300

05/02/2019 Indio Technologies Menlo Ventures, 8VC Provider of a workflow management platform for insurance agencies. $20

04/18/2019 Halo Investing Allianz Life Ventures, Piton Investment Provider of multi-issuer technology platform for structured notes. $11

04/17/2019 Salary Finance Blenheim Chalcot, Legal & General Provider of financial education and salary-linked savings and loans for employees. $33

04/16/2019 Cytora EQT Ventures Provider of AI-powered solutions for the commercial insurance industry. $33

04/11/2019 Lemonade SoftBank Provider of a peer-to-peer insurance platform designed for renters and homeowners. $300

04/01/2019 OpenFin Barclays, Wells Fargo Provider of runtime technology solutions for financial desktops. $17



–R E P R E S E N T A T I V E C O N S U M E R S O L U T I O N P R O V I D E R S





–

VALUATION1

($ in millions)

P E E R T O P E E R

P E R S O N A L F I N A N C E & M O B I L E W A L L E T S


Intuit INTU $64,850 $67,748 96.0% 28.1% 146.6% 10.7% 12.4% 28.5% 10.4x 9.3x 36.5x 25.8x 52.8x

Apple AAPL $943,183 $910,645 84.8% 6.7% 111.5% 9.4% (1.1%) 30.4% 3.6x 3.6x 11.9x 12.6x 15.7x

Amazon AMZN $964,279 $932,294 92.3% 11.3% 167.5% 30.9% 18.3% 11.9% 4.1x 3.5x 34.7x 22.5x 88.4x

Microsoft MSFT $981,318 $1,026,511 96.8% 35.8% 171.0% 15.8% 10.8% 41.9% 8.3x 7.5x 19.8x 17.5x 27.4x

Facebook FB $512,883 $550,916 88.3% (1.6%) 71.3% 37.4% 24.3% 52.3% 9.2x 7.4x 17.5x 13.9x 22.0x

PayPal PYPL $128,633 $134,483 95.4% 38.8% 224.8% 18.0% 16.4% 17.7% 8.3x 7.2x 47.1x 27.2x 60.7x

Square SQ $30,634 $30,678 71.7% 17.8% 714.9% 49.0% NA 0.6% 9.3x 13.4x NM NM NM

Western Union WU $11,362 $8,567 95.6% (2.0%) 6.4% 1.2% (5.0%) 24.6% 2.0x 2.1x 8.3x 8.9x 9.9x

Green Dot Corporation GDOT $926 $2,599 52.6% (32.2%) 125.6% 17.0% 9.3% 16.3% 0.9x 0.8x 5.4x 3.6x 27.8x

On Deck Capital ONDK $1,130 $315 44.1% (41.5%) (15.8%) 33.5% 121.2% NA 5.6x 2.5x NA 24.6x 15.5x

LendingClub LC $1,633 $1,417 72.1% (12.8%) (28.9%) 2.7% 12.4% NA 2.4x 2.1x NA 12.7x NM



–



05/24/2019 Handshake Shopify Provider of an online sales order application. NA

05/22/2019 Live Auctioneers Cove Hill Partners Provider of an online auction site for collectibles, antiques, jewelry and art auctions. NA

05/16/2019 TodayTix Great Hill Partners Provider of a mobile commerce platform for last-minute theater tickets. NA

05/16/2019 instaGiv ClearCourse Partnership Provider of an online SMS fundraising and engagement platform. NA

04/25/2019 PayScale Francisco Partners Management Provider of cloud compensation software for individuals and business customers. NA

04/23/2019 Qgiv SphereCommerce Provider of online donation software solutions. NA

04/18/2019 Payzone First Data, AIB Group Provider of a consumer payment acceptance network that provides payment services in Europe. NA

04/17/2019 Lenda Reali Provider of an online platform that allows homeowners to complete home loan process online. NA

04/11/2019 FanXchange Vivid Seats Provider of an online and mobile secondary live events ticketing marketplace. $64

03/07/2019 HotelTonight Airbnb Provider of hotel-booking services focused on making last minute trips comfortable. NA

02/28/2019 Benefit Mobile LaSalle Capital Provider of a digital gift card platform. NA

01/31/2019 AltheteTrax Pineapple Payments Provider of cloud based payments-focused software platform serving recreational sports leagues. NA

01/23/2019 Flyt Just Eat Holding Provider of a mobile payment application for checking, splitting, and paying restaurant bills. $26

01/22/2019 Nutmeg Convoy Global Holdings Provider of digital wealth management services designed to provide easy access to investing. $319

01/15/2019 Pocket Concierge American Express Provider of restaurant booking service in Japan. NA

06/06/2019 Getsafe Earlybird, CommerzVentures Provider of digital insurance products that users can instantly buy on their phone. $17

06/04/2019 Tink AB PayPal Holdings Provider of a mobile application to track personal finances. $11

05/29/2019 SoFi Qatar Investment Authority Provider of a lending and refinancing platform for student loans. $500

05/23/2019 PayJoy Greylock Partners Provider of smartphone technology promoting greater credit access in emerging markets. $20

05/23/2019 Zero Financial New Enterprise Associates Provider of banking solution to combine simplicity of a debit card with cash back of a credit card. $20

05/22/2019 Wealthsimple Allianz X Provider of a savings and investment platform for consumers. $84

05/20/2019 Wagestream Balderton Capital, Northzone Ventures Provider of a wage management platform to be an affordable alternative to payday loans. $19

05/10/2019 OneDegree BitRock Capital Provider of an insurance platform designed to fully digitize the insurance process. $30

05/04/2019 Kurly Global Venture Partners Provider of an online grocery service. $88

06/03/2010 WorldRemit Leapfrog Investments, Accel, TCV Provider of an online digital money transfer platform for consumers. $175

04/17/2019 Salary Finance Blenheim Chalcot, Legal & General Provider of financial education and salary-linked savings and loans for employees. $33

04/11/2019 Lemonade SoftBank Provider of a peer-to-peer insurance platform designed for renters and homeowners. $300

04/10/2019 ShopBack Rakuten Capital, EV Growth Provider of cashback and consumer rewards in Asia Pacific region. $45

04/03/2019 Affirm Thrive Capital, Fidelity Provider of an online lending platform as an alternative to credit cards at the point of sale. $300

04/02/2019 Vestwell Goldman Sachs Principal Strategic Investments Provider of a digital retirement planning and savings platform. $30



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Disclosures

Sources

Documents

FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019 · FINANCIAL TECHNOLOGY SECTOR REVIEW | Q2 2019 May 8, 2019S May 28, 2019 NG Enterprise Value: $26.2B NS April 2, 2019 Capital Raised: