Q1 2020
Sector Update FintechImportant disclosures appear at the back of this report
GP Bullhound LLP is authorised and regulated by the Financial Conduct Authority
GP Bullhound Inc is a member of FINRA
2
We publish this quarterly fintech market report to provide quantitative insights into public and private market valuations across the transaction spectrum and qualitative insights into company business models, technology and customer trends.
Given the unprecedented events of the COVID-19 pandemic, this quarter we dedicate one of our trends to discussing the impact on the fintech sector. Overall, we believe that companies that can demonstrate how their technologies enable the digital shift, coupled with a high level of recurring revenue, will benefit from the tailwinds created by COVID-19. In this report we also feature CEO/Founder profiles from companies in the banking-as-an-infrastructure space, as we see this sector picking up momentum, and three companies making significant inroads in emerging markets via payments and lending.
Based in our London office, Claudio Alvarez heads up our fintech practice, which has completed over 20 transactions involving both equity and debt. Several of our recent fintech advisory transactions and investments are showcased below:
GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and capital to category leaders
Fintech perspectivesEXECUTIVE SUMMARY
MambuINVESTMENT BY
Bessemer Venture Partners
€30 million
Budget InsightACQUIRED BY
Crédit Mutuel Arkéa
Undisclosed
EcoVadisINVESTMENT BY
CVC Growth Partners
$200 million
MoneseINVESTMENT BY
Kinnevik, PayPal, IAG, Augmentum
$60 million
RevolutINVESTMENT BY
GP Bullhound Fund IV
$10 million
3
Key sector takeaways
Recent fintech transaction trends
Public market fintech analyses
Fintech CEO commentary
Appendix A: Fintech trading comparables by category
Appendix B: GP Bullhound fintech credentials & team
1
3
4
5
6
Contents
2
Appendix C: GP Bullhound corporate overview7
4
Section 1
Key sector takeaways
5
GP Bullhound’s views on current trends in fintechKEY TRENDS
COVID-19: Fintech sector update1
2
3
Challenger banks: renewed focus on business banking
Continued M&A activity in Open Banking
4 AI/ML fintech enablers get their chance to shine
6
GP Bullhound’s views on current trends in fintechKEY TRENDS
1
The COVID-19 crisis has had and will certainly continue to have an impact on industry and the broader economy over the next several months, and as we discuss later in this report, within the different fintech verticals the reaction has been drastic and immediate.
On a macro level, we see the COVID-19 pandemic bring to a head the importance of a digital economy and we expect the digital shift to intensify the fight between different stakeholders vying for market share in the digital wallets of individuals and companies alike. This fight amongst incumbent and challenger payment solutions will most likely lead to consolidation in the space – which was already happening pre-COVID-19 – but we think this will intensify as incumbents look to improve their capabilities with more agile technologies and some of the challenger companies struggle with significantly lower volumes.
Prior to the COVID-19 crisis we started to see a move to quality, as investors started to focus on quality of unit economics rather than growth at all cost. We expect this trend to gain momentum, especially in sub-sectors (FX, challenger banks, lending, trading) where monetisation is relatively nascent or companies that are heavily skewed to consumer spending. In our conversations with investors and companies focused on consumer fintech propositions, we have heard of significant reductions in marketing (for some marketing spend has been cut 100%), halting of geographic expansion, and slowing down of lending activities.
The companies that survive such drastic measures will most likely emerge with healthier unit economics if they are able to demonstrate user growth through organic channels and highlight their capabilities monetising users (credit, trading, better FX spreads) while managing lower levels of revenues around payment volumes, card fees and subscriptions.
While we do believe COVID-19 is a challenge for all fintech participants there will also be some sub-sectors (Banking SaaS, KYC/AML technologies, ML/AI) that benefit from the increased shift to a digital economy. We believe that companies that can demonstrate how their technologies enable the digital shift, coupled with a high level of recurring revenue, will benefit from the tailwinds created by COVID-19.
COVID-19: Fintech sector update
7
GP Bullhound’s views on current trends in fintechKEY TRENDS
1 COVID-19: Fintech sector update (continued)
ChallengerBanks
Online Payments
Banking Tech
Financial Data & Analytics
Lending
ChallengerBanks
Online lenders
Banking tech
Financial Data & Analytics
ChallengerBanks
ChallengerBanks
Online lenders
Banking tech
Financial Data & Analytics
ChallengerBanks
Sector Companies COVID-19 impact
Lower transaction activity + consolidation
Strong beneficiaries of digital shift+ consolidation
Beneficiaries of digital shift+ investors will prefer models with higher recurring revenues
Beneficiaries of digital shift but will experience a slowdown due to lower volumes
Concerns over SME & consumer defaults
8
GP Bullhound’s views on current trends in fintechKEY TRENDS
Source: TechCrunch, Wall Street Journal, CrunchBase, Fortune
2
As challenger banks look to grow into their valuations and balance out their exposure to the consumer, we will see continued investment in product & service offerings to build out their unified platforms for consumers and businesses.
Historically we noted challenger banks focusing their efforts on core consumer propositions with the launch of various lending and savings products and re-launching of paid plans to drive improvements in ARPU and user churn as investors focus in on unit economics.
In Q1 2020, we note renewed focus in business banking with Monzo, Starling (predominantly through BCR funding) and Revolut ramping up its free and paid plans to gain market share from traditional lenders and make progress on their monetisation of customers. We believe the well-funded players will continue to make in-roads in business banking, especially those who have the lending skill and talent to navigate the COVID-19 environment.
While there are pure-play players in the business banking space (OakNorth, Qonto, Soldo, Tide, and Penta), we expect there to be limited consolidation between consumer and business challenger banks and instead see consumer-focused challenger banks continuing to develop their own propositions and teams.
Challenger banks: renewed focus on business banking
Consumer
Business
Challenger
Established
9
GP Bullhound’s views on current trends in fintechKEY TRENDS
3
The acquisition of Plaid by Visa for $5.3bn in January this year and more recently the acquisition of Strands by CRIF in March signals to us the beginning of an M&A wave in this sector as traditional market participants look to enhance their capabilities in account aggregation, PFM and faster payments.
Given the mixture of established players such as Meniga, Personetics, MX Technologies and Moven, and the likes of well-funded challengers such as Tink and TrueLayer, we believe that this may also drive M&A through consolidation as these players drive for scale, combine infrastructure with best-in-class use cases (moving upstream) and investors look to supercharge growth and/or improve profitability.
Continued M&A activity in Open Banking 4 AI/ML fintech enablers get their chance to shine
There's been a lot of hype around the benefits and impact of AI/ML software on KYC/AML processes, fraud detection, credit scoring and sentiment analysis, and we believe the COVID-19 crisis (which will accelerate the shift to the digital economy) will prove to be the chance for some players in this space to show how their data analytic capabilities allow clients to make smarter and better decisions around lending and investment, detect fraud quicker and authenticate potential customers more efficiently.
If successful, we believe that players such as Onfido, Clear Score, Aire and Hooyu could start winning significant market share from traditional players and come into 2021 as the new standard for how AI/ML can be put to work effectively.
10
Section 2
Recent fintech transaction trends
11
02004006008001.0001.2001.400
0
10
20
30
40
50
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Total capital invested (LHS) Volume (RHS)
050100150200250300350
020406080
100120140
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Value (LHS) Volume (RHS)
0%
20%
40%
60%
80%
100%
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Americas Europe Asia Other
M&A deal value by region Fundraising deal value by region
$bn, number of deals $bn, number of deals
0%
20%
40%
60%
80%
100%
Q1
2017
Q2
2017
Q3
2017
Q4
2017
Q1
2018
Q2
2018
Q3
2018
Q4
2018
Q1
2019
Q2
2019
Q3
2019
Q4
2019
Q1
2020
Americas Europe Asia Other
Global fintech transaction volume slowing downM&A AND FUNDRAISING ACTIVITY BY QUARTER
Transaction M&A deal value and volume Fundraising deal value and volume
Source: Pitchbook as of 31 March 2020Note: Data includes all “fintech” M&A & fundraising deals and IPOs as defined by Pitchbook regardless of geography or transaction size(1) Spike in the M&A value in Q3 2019 was caused by 4 extraordinarily large transactions with an aggregate value of $94bn (Worldpay/FIS ($35.5bn), First Data/Fiserv ($22bn), Total System Services/Global Payments ($21.5bn), Refinitiv/LSE ($14.8bn)) (2) Spike in fundraises value in Q2 2018 was caused by an extraordinarily large investment in Ant Financial ($14bn)
(1)
(2)
Over the past two quarters we have seen a slowdown in both M&A and funding activity as Q3 2019 started the beginning of a plateau due to (1) Asian investors being less active and (2) investors focusing on later stage businesses, hence fewer deals but at higher values.
12
Continued consolidation in payments
Deal date Target Buyer Target description EV ($m) Implied EV/LTM Rev
12-Mar-20 Personal finance and employee benefits platform providing loans and savings products - -
11-Mar-20 Provider of cashless payment services in Poland 444 -
24-Feb-20 Personal financial management company to compare personalised offers for credit cards, loans, and more 7,100 7.1x
24-Feb-20 End-to-end payment processing solutions and services in Mexico 86 -
20-Feb-20 Online discount stock brokerage platform for self-directed investors 13,000 -
03-Feb-20 Provider of payment and transaction processing services 8,600 3.0x
27-Jan-20 Banking and payment services provider for credit card and transaction processing 237 1.3x
24-Jan-20 B2B international payment solutions for the travel industry 1,700 -
23-Jan-20 Provider of risk intelligence compliance screening services such as AML, KYC data 700 -
13-Jan-20 Banking as a service company empowering fintech tools via its financial services APIs 5,300 -
11-Jan-20 Digital credit platform providing consumer loans in India 185 -
09-Jan-20 Retail finance platform providing instalment credit and consumer loans 52 -
08-Jan-20 Online insurance brokerage services in Hungary 82 -
Selected M&A transactions, January – March 2020
Q1 2020 TRANSACTIONS
(1)
Source(s): Pitchbook, Capital IQ, Mergermarket(1): Announcement date
Q1 2020 saw a continued effort by strategics to consolidate the payments market with Plaid/Visa and Ingenico/Worldline being two of the largest deals. We also believe the Credit Karma / Intuit transaction may point to more deals to come in the consumer data space.
13
Date TargetLeadinvestor(s) Target description
Capital raised
($m)
25-Mar-20 Bill payment credit solutions for SMEs 75
23-Mar-20Fundraising platform, connecting HNWI to investment managers
147
17-Mar-20 Business banking solutions 20
09-Mar-20 UK-based challenger bank 78
02-Mar-20 Cloud native core banking solutions 83
26-Feb-20Financial services platform for mobile network operators and banks
55
24-Feb-20QR code-based payment app for offline retailers and businesses
75
24-Feb-20 Provider of a sustainability rating platform 200
17-Feb-20 UK-based challenger bank 500
13-Feb-20 Vertical payments solutions 120
13-Feb-20 Lender that offers crypto asset-backed securities 30
Date TargetLeadinvestor(s) Target description
Capital raised
($m)
10-Feb-20 UK-based challenger bank 77
04-Feb-20 Payments infrastructure platform 35
30-Jan-20 Online insurance marketplace 100
29-Jan-20 Payment solutions platform for merchants and shoppers 200
27-Jan-20 Cloud-based platform for B2B cross-border payments 80
22-Jan-20 Flexible financing solutions for small businesses 42
20-Jan-20 Neobank for SMEsand freelancers 115
20-Jan-20 Cloud-based open banking platform 99
17-Jan-20Accounts payable and on-demand invoice management solutions
260
15-Jan-20 Peer to peer payments platform 44
14-Jan-20 NondisclosedFinancial platform to facilitate digital trade transactions
240(1)
Selected fundraisings, January – March 2020
Source(s): Pitchbook, Capital IQ, Mergermarket(1): Mix of equity and debt
Investors still looking to gain exposure to challenger banksQ1 2020 TRANSACTIONS
We saw five challenger banks raise fresh rounds of capital in Q1 2020 and we still see further appetite for models that are genuinely differentiated.
14
Section 3
Public market fintech analyses
15
1,1
3,7
3,9
2.9
5,4
7,9
14.4
26.9
24.4
46.1
127.0
(0,8)
(1,0)
(2,3)
(2,0)
(1.8)
(4.1)
1.1
2.7
(14.7)
0.1
0.2
0.7
2.8
2.9
3.0
3.1
5.9
12.6
22.8
25.5
48.8
112.3
Market Cap as at 01-Jan-20 Change in Market Cap Current Market Cap
The value of the GP Bullhound’s fintech index dropped by ~$24bn over Q1 2020 as a result of the difficult trading environment caused by the COVID-19 pandemic.
We expect to see further volatility during the lockdown periodGP BULLHOUND'S 2020 FINTECH INDEX BY MARKET CAPITALISATION
Source: Capital IQ as at 31 March 2020Note: PayPal, Shopify, Adyen, Square, Market Axess and BlackLine bars are not at scale for illustration purposesOpening market capitalisation as of 1 January 2020; Current market capitalisation as of 31 March 2020
16
We expect to see further volatility as companies re-new year-end guidance and markets continue to adjust to a COVID-19 economy.
Source: Capital IQ as of 31 March 2020. 1 EV/Rev multiples except for online lenders which are computed as Market Cap/Rev multiples. Note: fintech Index constituents are: PayPal, Shopify, Square, Adyen, Market Axess, Xero, Envestnet, Q2, Blackline, Lending Club, Funding Circle, Ondeck, and Afterpay(1) YTD GPB fintech index EV / LTV revenues comparison
Fintech valuations are currently below the 3-year averageGP BULLHOUND FINTECH INDEX VALUATIONS
4x
6x
8x
10x
12x
14x
16x
Mar-17 Jul-17 Nov-17 Mar-18 Jul-18 Nov-18 Mar-19 Jul-19 Nov-19 Mar-20
GPB Fintech Index - TEV/LTM Revenues GPB Fintech Index - TEV/NTM Revenues
Mean: 11.8x
Mean: 10.1x
Dec ‘18: Trade war with China leads to a
market-wide sell-off
Mar ‘20: Multiples are down 22%(1) YTD due to the effects of COVID-19
As at 31 March 2020, the fintech index is trading 10.1x trailing 12 months revenues, which is 15% below the 3-year averageAs at 31 March 2020, the fintech index is trading at 9.6x next 12 months revenues, which is 5% below the 3-year average
17
Difficult trading environment caused by the COVID-19 pandemic. We expect volatility in the market to continue during the lockdown period; however, this Q1 2020 snapshot also highlights how certain verticals – financial data & analytics and some online payment players – are expected to trade well throughout this period.
70
80
90
100
110
120
130
140
150
Mar-19 May-19 Jul-19 Sep-19 Nov-19 Jan-20 Mar-20
Performance 1 Month 3 Months 6 Months 1 Year
Financial Data & Analytics (14.4%) (12.5%) (5.2%) 4.8%Nasdaq (10.1%) (14.2%) (3.7%) (0.4%)Banking Technology (7.5%) (16.3%) (9.7%) (1.6%)Payments (22.1%) (19.4%) (15.4%) (4.9%)HR & Payroll (18.9%) (22.1%) (13.2%) (10.8%)
Payments(4.9%)
Source: Capital IQ as of 31 March 2020Note: Detail on companies included in Appendix
COVID has impacted all sub-sectors - some more than othersSHARE PRICE PERFORMANCE – LAST 12 MONTHS
HR & Payroll(10.8%)
Financial Data & Analytics
4.8%
Banking Technology(1.6%)
Nasdaq(0.4%)
LTM performance
18
7.2x 21.0x29.2%HR & Payroll 12.0%
Mixed bag of trading updates as COVID impacts are differentINDICATIVE TRADING VALUATION BENCHMARKS
EV/ 2020E revenue (1)
EV/2020E EBITDA (1)
2020E EBITDA margin (1) Selected companiesVerticals
2020E revenue growth (1)
7.0x 21.4x35.1%Financial Data & Analytics 7.2%
9.6x 23.6x31.6%Banking Technology
8.1x 19.1x33.9%Payments 22.4%
16.1%
Source: Capital IQ as of 31 March 2020Note: Only selected logos shown, detail on companies included in Appendix (1) Mean
Although growth guidance for FY2020 has started making its way through analyst estimates, we think there are further downgrades to filter through with a flurry of potential upgrades for “tailwind” companies benefiting from the digital shift.
19
Section 4
Fintech CEO commentary
20
CEO profile
Bankable is a global architect of innovative payments and digital banking solutions powering Banking-as-a-Service. Bankable enables and serves dominant financial institutions, corporates and fintech entrepreneurs to bring to market highly differentiated payment solutions supported by a very strong, immediate business case.Eric is the founder and CEO of Bankable. He previously co-founded Valtech, an IT project-based consultancy, and spearheaded its transformation into a Euronext listed multinational in eight countries, with 1,500 staff and a peak market capitalisation of $1.5+ billion, all within six years.
“Bankable designs, builds, runs and operates the Banking platform of the future. I founded Bankable to provide transparency and real-time capabilities 24/7/365 with 100% uptime reliability for the end-customers of business and retail banks.
Our priority is to build API-enabled digital banking and payment solutions for the best-of-breed fintechs and incumbents locally, regionally and globally, powering the most ambitious and urgent use cases.”
Eric MouillleronCEO & FOUNDER
21
CEO profile
ZestMoney aims to provide affordable credit to millions of people who can't currently access it through traditional financial institutions. ZestMoney's proprietary risk engine makes it capable of disbursing credit to customers in every corner of the country within seconds, that too without human interference. The company currently has 15,000+ merchants across almost every vertical in both offline and online channels. Founded in 2015 by Lizzie Chapman, Priya Sharma and Ashish Anantharaman in Bengaluru, India, ZestMoney has raised $63 million in funding from a diverse suite of world-class investors, such as Ribbit Capital, Omidyar Network, Xiaomi, Naspers and, most recently, Goldman Sachs.
“At ZestMoney, we use advanced mobile technology, artificial intelligence and digital banking to make life affordable for millions of consumers, who currently have no access to credit cards or traditional finance options due to insufficient credit history.
Because ZestMoney was built keeping the specific financial challenges of the average Indian in mind, and because we push the boundaries of digital finance every day, we are able to bring affordability to countless households across the country. We stand by the words, ‘EMI for Everyone’.”
Lizzie ChapmanCEO & CO-FOUNDER
22
CEO profile
MFS Africa is the largest mobile money inter-operability hub in Africa, connecting 200m mobile account users across the continent. The company connects mobile network operators across the continent to each other, and to merchants, banks, and other FI through a single API. In addition to mobile remittance services, the MFS Africa API enables merchant payment, bulk payment, bank-to-wallet transfers, and an array of other cross-border, cross-platform digital payments services.MFS Africa has recently partnered with Visa in order to bridge the gap between the mobile money ecosystem in Africa and the world of online digital payments, and integrate Visa’s real-time push payments solution Visa Direct. MFS Africa is the first non-bank principal member of the Visa network in Africa.
“Where you are should not limit what you can do. This belief motivates everything we do at MFS Africa, where every day we connect African consumers to each other, and to the global digital economy. Whether the use case is remittances, e-commerce, or SME payments, our mission is to make borders matter less when it comes to moving money.”
Dare OkoudjouCEO & FOUNDER
23
CEO profile
TPAY MOBILE is MEA’s leading merchant acquirer, digital payment enabler (using mobile number only) & cross-border platform that unlocks access to 580m+ consumers in MEA. Leveraging direct carrier billing and mobile wallet/money, through one integration, merchant partners are able to unlock any mobile number linked source of funds across 24 countries. Sahar Salama is the CEO and Founder of TPAY MOBILE. Sahar received high honour MBA from Imperial College London and a BSc. in Computer Science with highest honour from the American University in Cairo. Sahar has over 25 years of managerial experience in platforms development, product development in hi-tech companies and telecommunications sectors with extensive international exposure.
Sahar SalamaCEO & FOUNDER
“At TPAY MOBILE, we created the first pan Middle East and Africa (MEA) cross border platform which can access every individual with a sim card / mobile number, allowing them to transact online using airtime, their monthly bill or mobile money balance.
The platform’s unparalleled reach spans 580m+ addressable users, most of which are underbanked, across 24 countries – this is the power of mobile and is TPAY’s unique proposition to its global merchant partners. Working with our merchant partners, we have big dreams to help unlock full access to the digital economy, across various use cases, in our region.”
24
Appendix A: Fintech trading comparables by category
25
S&P Global 58,982 63,093 4.6% 6.2% 4.9% 7.7% 51.4% 51.6% 52.3% 9.5x 9.1x 8.5x 18.4x 17.6x 16.3x 26.1x 24.2x 22.0x 15%
Moody's 39,594 44,044 4.5% 6.9% 4.2% 8.8% 48.4% 48.2% 49.1% 9.2x 8.8x 8.2x 19.0x 18.3x 16.8x 25.8x 23.8x 21.4x 15%
Thomson Reuters 33,485 35,672 4.0% 4.1% 29.5% 6.5% 25.4% 31.6% 32.3% 6.0x 5.8x 5.6x 23.8x 18.4x 17.2x 54.1x 35.6x 32.0x 21%
Experian 25,231 29,501 7.7% 6.0% 12.4% 8.1% 33.8% 35.3% 36.0% 5.9x 5.5x 5.2x 17.4x 15.5x 14.3x 28.1x 24.5x 23.3x 7%
IHS Markit 23,935 29,413 (2.7%) 6.3% 1.9% 10.4% 40.0% 41.9% 43.5% 6.7x 6.8x 6.4x 16.6x 16.3x 14.8x 23.2x 21.7x 19.1x 10%
MSCI 24,566 26,318 10.1% 9.5% 12.4% 11.5% 54.2% 55.3% 56.2% 16.9x 15.4x 14.0x 31.3x 27.8x 25.0x 45.3x 39.7x 34.5x 43%
Verisk Analytics 22,730 25,941 8.6% 6.3% 8.6% 8.1% 46.8% 46.9% 47.6% 10.0x 9.2x 8.6x 21.3x 19.6x 18.1x 31.9x 28.6x 25.8x 4%
Equifax 14,569 17,696 5.2% 5.8% 6.4% 9.4% 33.6% 34.0% 35.2% 5.1x 4.8x 4.5x 15.0x 14.1x 12.9x 21.4x 21.2x 18.8x (0%)
TransUnion 12,560 16,127 7.1% 7.8% 7.4% 9.5% 39.7% 39.8% 40.4% 6.1x 5.7x 5.3x 15.3x 14.3x 13.0x 24.1x 21.3x 18.9x (3%)
FactSet 9,881 10,373 3.5% 3.6% (0.5%) 5.1% 35.5% 34.1% 34.6% 7.1x 6.9x 6.7x 20.1x 20.2x 19.2x 25.9x 26.2x 24.7x 5%
Black Knight 8,593 10,169 2.0% 6.9% 3.2% 7.4% 49.5% 50.1% 50.3% 8.6x 8.5x 7.9x 17.5x 16.9x 15.7x 30.1x 28.8x 26.0x 7%
FICO 8,969 9,881 5.5% 6.0% 9.9% 14.1% 32.1% 33.4% 36.0% 8.3x 7.9x 7.5x 26.0x 23.6x 20.7x 38.8x 36.0x 30.3x 13%
Morningstar 4,982 5,302 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a n.a n.a (10%)
CoreLogic 2,413 4,125 (2.5%) (0.0%) 3.8% 0.6% 28.1% 30.0% 30.2% 2.3x 2.4x 2.4x 8.3x 8.0x 8.0x 11.0x 10.4x 10.1x (19%)
Envestnet 2,845 3,429 11.0% 10.0% 12.2% 13.0% 21.3% 21.5% 22.1% 3.8x 3.4x 3.1x 17.9x 15.9x 14.1x 25.1x 24.5x 21.7x (19%)
BlackLine 2,966 2,763 20.9% 20.0% 39.7% 47.5% 9.3% 10.8% 13.2% 9.6x 8.0x 6.6x n.m. 74.0x 50.2x 136.3x 116.0x 84.6x 14%
LiveRamp 2,218 1,471 26.3% 30.2% n.a. n.a. (16.6%) (2.9%) 4.9% 4.2x 3.3x 2.5x n.m. n.m. 51.7x n.m n.m 107.9x (40%)
Mean 7.2% 8.5% 10.4% 11.2% 33.3% 35.1% 36.5% 7.5x 7.0x 6.4x 19.1x 21.4x 20.5x 36.5x 32.2x 32.6x 6.4%Median 5.4% 6.3% 7.4% 8.8% 34.7% 34.7% 36.0% 6.9x 6.9x 6.5x 18.1x 17.6x 16.5x 26.1x 24.5x 24.0x 7.1%
Market Cap (USDm) EV (USDm) Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA P/E
Share Price Performance
Company 31/Mar/20 31/Mar/20 19/20 20/21 19/20 20/21 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 LTM
Source: Capital IQ as of 31 March 2020Note: EV/Revenue multiples in excess of 50.0x, EV/EBITDA multiples in excess of 100.0x and P/E multiples in excess of 150.0x are considered not-material (“NM”) and are not included in average calculation
Trading comparables – Financial Data & Analytics
26
MarketAxess 12,612 12,353 19.1% 9.9% 25.1% 6.5% 55.2% 58.0% 56.2% 24.3x 20.4x 18.5x 43.9x 35.1x 33.0x 61.8x 53.9x 48.4x 35%
Jack Henry 11,910 11,908 7.8% 7.8% 6.5% 9.8% 32.6% 32.2% 32.8% 7.3x 6.8x 6.3x 22.5x 21.1x 19.3x 43.0x 40.3x 34.9x 11%
Temenos 9,449 10,472 15.5% 12.4% 20.4% 15.0% 39.3% 41.0% 42.0% 10.7x 9.3x 8.2x 27.2x 22.6x 19.6x 38.1x 33.3x 28.9x (15%)
Q2 2,860 3,197 29.2% 24.5% (1.1%) 120.6% 5.6% 4.3% 7.6% 10.1x 7.8x 6.3x n.m. n.m. 82.7x n.m n.m 139.7x (15%)
Bottomline Technologies 1,613 1,651 8.7% 9.1% 8.6% 10.2% 22.6% 22.6% 22.8% 3.8x 3.5x 3.2x 16.9x 15.6x 14.1x 28.3x 25.8x 22.3x (27%)
Mean 16.1% 12.7% 11.9% 32.4% 31.1% 31.6% 32.3% 11.2x 9.6x 8.5x 27.6x 23.6x 33.7x 42.8x 38.3x 54.8x (2.4%)Median 15.5% 9.9% 8.6% 10.2% 32.6% 32.2% 32.8% 10.1x 7.8x 6.3x 24.9x 21.9x 19.6x 40.5x 36.8x 34.9x (14.8%)
Source: Capital IQ as of 31 March 2020Note: EV/Revenue multiples in excess of 50.0x, EV/EBITDA multiples in excess of 100.0x and P/E multiples in excess of 150.0x are considered not-material (“NM”) and are not included in average calculation
Trading comparables – Banking Technology
Market Cap (USDm) EV (USDm) Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA P/E
Share Price Performance
Company 31/Mar/20 31/Mar/20 19/20 20/21 19/20 20/21 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 LTM
27
High Growth Omnichannel PaymentsPayPal 112,299 107,054 16.2% 17.3% 14.9% 19.1% 27.2% 26.9% 27.3% 6.0x 5.2x 4.4x 22.2x 19.3x 16.2x 31.1x 28.3x 23.3x (9%)Fiserv 64,508 88,135 2.6% 5.9% 10.8% 9.4% 33.7% 36.3% 37.5% 5.7x 5.5x 5.2x 16.8x 15.2x 13.8x 23.7x 19.7x 16.7x 6%Shopify 48,808 46,492 39.1% 35.8% (31.1%) 140.1% 4.3% 2.1% 3.8% 29.9x 21.5x 15.8x n.m. n.m. n.m. n.m n.m n.m 102%Adyen 25,484 23,619 36.4% 36.7% 35.3% 40.5% 57.4% 56.9% 58.5% 43.8x 32.1x 23.5x 76.4x 56.5x 40.2x 111.3x 83.7x 59.3x 9%Square 22,798 22,333 134.5% 27.6% (5.3%) 59.5% 18.5% 7.5% 9.3% 9.9x 4.2x 3.3x 53.9x 56.9x 35.7x 67.4x 80.3x 49.4x (31%)StoneCo 6,038 6,745 35.0% 34.8% 29.7% 46.3% 56.5% 54.2% 58.9% 14.0x 10.4x 7.7x 24.7x 19.1x 13.0x 29.9x 28.3x 20.0x (49%)Pageseguro 6,347 5,667 19.8% 24.5% 19.3% 29.9% 37.3% 37.2% 38.8% 5.2x 4.3x 3.5x 13.9x 11.7x 9.0x 17.2x 19.2x 15.0x (36%)
Afterpay 3,068 3,077 69.7% 52.9% 29.8% 173.8% 9.3% 7.1% 12.7% 13.5x 7.9x 5.2x n.m. n.m. 40.7x n.m n.m 148.1x (16%)
Mean 44.2% 29.4% 12.9% 64.8% 30.5% 28.5% 30.8% 16.0x 11.4x 8.6x 34.7x 29.8x 24.1x 46.8x 43.2x 47.4x (3%)Median 35.7% 31.2% 17.1% 43.4% 30.4% 31.6% 32.4% 11.7x 6.7x 5.2x 23.5x 19.2x 16.2x 30.5x 28.3x 23.3x (13%)
General Payments & ServicesGlobal Payments 43,288 51,929 41.0% 9.6% 70.6% 15.2% 37.1% 44.9% 47.2% 9.6x 6.8x 6.2x 25.8x 15.1x 13.1x 23.4x 19.9x 16.4x 4%
Wirecard 14,210 12,029 25.7% 27.3% 32.1% 29.6% 28.6% 30.1% 30.6% 4.0x 3.2x 2.5x 14.1x 10.7x 8.2x 23.8x 18.5x 14.0x (4%)
Worldline 10,741 11,667 4.6% 7.6% 8.2% 14.3% 24.8% 25.6% 27.2% 4.5x 4.3x 4.0x 18.2x 16.8x 14.7x 31.9x 29.5x 24.8x 0%
Nexi 8,180 10,976 10.0% 8.4% 21.8% 13.4% 50.2% 55.6% 58.2% 10.2x 9.3x 8.6x 20.4x 16.8x 14.8x 33.8x 29.9x 25.6x n.a.
Ingenico 6,647 8,572 0.0% 6.9% 2.7% 10.2% 17.8% 18.3% 18.9% 2.3x 2.3x 2.2x 13.1x 12.7x 11.5x 18.8x 19.5x 17.0x 50%
Cielo 2,326 4,228 (0.3%) 6.0% (17.5%) 8.7% 26.6% 22.0% 22.5% 2.0x 2.0x 1.9x 7.4x 9.0x 8.3x 5.2x 9.6x 8.8x (54%)
ACI Worldwide 2,805 4,136 18.3% 5.6% 41.2% 7.5% 24.2% 28.9% 29.3% 3.3x 2.8x 2.6x 13.6x 9.6x 8.9x 18.4x 11.6x 10.2x (27%)
Network International 2,425 2,737 8.1% 14.1% 9.3% 16.6% 48.4% 48.9% 50.0% 8.2x 7.6x 6.7x 17.0x 15.6x 13.4x 24.2x 22.2x 18.8x n.a.
EVO Payments 631 1,870 (16.5%) 13.6% (3.2%) 18.0% 27.0% 31.4% 32.6% 3.2x 3.8x 3.4x 11.8x 12.2x 10.3x 24.9x 25.6x 19.3x (48%)
Green Dot 1,340 335 (1.1%) 7.4% (26.6%) 18.0% 21.2% 15.7% 17.3% 0.3x 0.3x 0.3x 1.5x 2.0x 1.7x 9.5x 17.0x 13.2x (59%)
Mean 9.0% 10.6% 13.9% 15.1% 30.6% 32.1% 33.4% 4.8x 4.2x 3.8x 14.3x 12.0x 10.5x 21.4x 20.3x 16.8x (17%)Median 6.4% 8.0% 8.7% 14.7% 26.8% 29.5% 30.0% 3.7x 3.5x 3.0x 13.8x 12.4x 10.9x 23.6x 19.7x 16.7x (16%)
Payment NetworksVisa 346,137 356,191 1.4% 16.5% 3.0% 18.2% 68.1% 69.2% 70.2% 15.1x 14.9x 12.8x 22.2x 21.5x 18.2x 28.7x 27.5x 22.7x 2%
Mastercard 242,794 244,505 4.1% 16.7% 0.7% 20.5% 60.3% 58.2% 60.1% 14.5x 13.9x 11.9x 24.1x 23.9x 19.8x 31.4x 30.4x 24.4x 1%
Mean 2.8% 16.6% 1.8% 19.3% 64.2% 63.7% 65.2% 14.8x 14.4x 12.4x 23.1x 22.7x 19.0x 30.05 29.0x 23.6x 1.8%Median 2.8% 16.6% 1.8% 19.3% 64.2% 63.7% 65.2% 14.8x 14.4x 12.4x 23.1x 22.7x 19.0x 30.05 29.0x 23.6x 1.8%
Mean (ALL) 22.4% 18.8% 12.3% 35.4% 33.9% 33.9% 35.5% 10.3x 8.1x 6.6x 22.1x 19.1x 16.4x 30.8x 28.9x 28.8x (9%)Median (ALL) 13.1% 15.3% 10.0% 18.1% 27.9% 30.7% 31.6% 7.1x 5.3x 4.8x 17.6x 15.4x 13.4x 24.5x 23.9x 19.3x (7%)
Source: Capital IQ as of 31 March 2020Note: EV/Revenue multiples in excess of 50.0x, EV/EBITDA multiples in excess of 100.0x and P/E multiples in excess of 150.0x are considered not-material (“NM”) and are not included in average calculation
Trading comparables – Payments
Market Cap (USDm) EV (USDm) Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA P/E
Share Price Performance
Company 31/Mar/20 31/Mar/20 19/20 20/21 19/20 20/21 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 LTM
28
ADP 59,012 59,974 4.9% 8.1% 10.6% 7.5% 25.0% 26.3% 26.2% 4.1x 3.9x 3.6x 16.5x 14.9x 13.9x 24.0x 22.3x 18.9x (16%)
Intuit 59,913 58,401 9.0% 11.7% 12.1% 10.3% 35.4% 36.4% 35.9% 8.2x 7.5x 6.7x 23.2x 20.7x 18.8x 33.4x 30.2x 26.1x (13%)
Workday 30,211 29,836 19.4% 18.8% 28.5% 19.7% 20.8% 22.3% 22.5% 8.3x 6.9x 5.8x 39.7x 30.9x 25.8x 72.7x 59.7x 47.1x (32%)
Paychex 22,570 22,707 (0.9%) 3.3% (2.3%) 4.5% 40.7% 40.2% 40.6% 5.6x 5.7x 5.5x 13.8x 14.2x 13.5x 21.6x 21.9x 20.5x (22%)
SS&C 11,204 18,613 2.9% 3.4% 5.2% 5.4% 38.9% 39.8% 40.6% 4.0x 3.9x 3.8x 10.4x 9.8x 9.3x 11.8x 10.7x 9.9x (32%)
Paycom 11,645 11,573 22.8% 22.1% 21.8% 23.2% 42.4% 42.1% 42.5% 15.8x 12.8x 10.5x 37.1x 30.5x 24.7x 59.1x 48.7x 39.0x 6%
Coupa Software 9,058 9,074 28.5% 25.5% 10.0% 73.8% 12.9% 11.1% 15.3% 23.8x 18.5x 14.8x n.m. n.m. 96.3x n.m n.m n.m 55%
The Sage Group 8,034 8,524 (0.5%) 6.6% 1.8% 6.3% 24.8% 25.3% 25.3% 3.5x 3.6x 3.3x 14.3x 14.0x 13.2x 19.7x 19.9x 18.5x (16%)
Xero 5,890 5,879 19.5% 29.6% 32.7% 47.7% 19.4% 21.5% 24.5% 14.3x 12.0x 9.2x 74.0x 55.8x 37.8x n.m n.m 112.0x 39%
Paylocity 4,735 4,674 18.0% 18.4% 18.2% 23.1% 28.2% 28.3% 29.4% 9.0x 7.7x 6.5x 32.0x 27.1x 22.0x 55.5x 49.9x 39.4x (1%)
TriNet 2,589 2,764 5.6% 9.4% 4.4% 12.9% 39.3% 38.8% 40.0% 3.0x 2.8x 2.6x 7.6x 7.3x 6.4x 11.3x 10.6x 9.1x (37%)
Blucora 576 898 15.3% 7.0% 9.4% 7.7% 18.7% 17.8% 17.9% 1.2x 1.1x 1.0x 6.7x 6.1x 5.7x 6.1x 5.2x 4.7x (65%)
Mean 12.0% 13.7% 12.7% 20.2% 28.9% 29.2% 30.1% 8.4x 7.2x 6.1x 25.0x 21.0x 24.0x 31.5x 27.9x 31.4x (11.3%)Median 12.1% 10.6% 10.3% 11.6% 26.6% 27.3% 27.8% 6.9x 6.3x 5.7x 16.5x 14.9x 16.3x 22.8x 22.1x 20.5x (16.0%)
Source: Capital IQ as of 31 March 2020Note: EV/Revenue multiples in excess of 50.0x, EV/EBITDA multiples in excess of 100.0x and P/E multiples in excess of 150.0x are considered not-material (“NM”) and are not included in average calculation
Trading comparables – HR & Payroll
Market Cap (USDm) EV (USDm) Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA P/E
Share Price Performance
Company 31/Mar/20 31/Mar/20 19/20 20/21 19/20 20/21 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 CY2019 CY2020 CY2021 LTM
29
Appendix B: GP Bullhound fintech credentials & team
30* Indicates where company has been advised by a current GP Bullhound team member as part of a team with a previous employer.
Deep experience across key fintech verticals
Digital banking / lending
Payments
INVESTMENT BY ACQUIRED BY
INVESTMENT BY
ACQUIRED BY
INVESTMENT BY*
Undisclosed
ACQUIRED BYACQUIRED BY
SECONDARY IPO
€343m
ACQUIRED BY ACQUIRED BY*
ACQUIRED BYINVESTMENT BY
ACQUIRED BY*
INVESTMENT BY
INVESTMENT BY
INVESTMENT BYINVESTMENT BY
INVESTMENT BY
ACQUIRED BYACQUIRED BY
INVESTMENT BYINVESTMENT BY ACQUIRED BY
31
Authors
Claudio AlvarezPARTNER
Floris BackerEXECUTIVE DIRECTOR
Alexis MajosANALYST
Maria MaciagowskaANALYST
Adam PageVICE PRESIDENT
32
Section 8
Appendix C: GP Bullhound corporate overview
33
Helping brave, brilliant leaders build the future
Confidential
34
A leading technology advisory and investment firmABOUT GP BULLHOUND
(1) League table data represents selected transaction advisors. Time period is 2016-Q4 2019. Global M&A transactions between $10m and $300m
ESSENCEBALTIC CLASSIFIEDS
GROUPFALCON.IO JELLYFISH SPOTIFY SLACK REVOLUT GLOVO
INNOGAMES DELIVERY HERO SIGNAVIO PRODIGY FINANCE TECHNOLOGYPREDICTIONS
TITANS OF TECH
SUMMIT MARBELLA
INVESTOR ALLSTARS
Mergers & Acquisitions Investments
Capital Transactions Insights & Events
We are the no. 1 global advisor (1) to leading technology companies in competitive international sale and acquisition processes. The firm has completed 420 successful M&A transactions to date, worldwide, with a total value of over $18bn.
Through our investment team, we provide investors with access to category leading technology companies. Our four closed-end funds have a total value of more than €170m and our limited partners include institutions, family offices and entrepreneurs.
We are a leading global advisor to companies and their owners on capital related transactions including venture capital, growth capital, acquisition funding, secondary block trades and initial public offerings. The firm has completed 120 rounds of financing for technology companies to date, with a total value of $2bn.
Our events and speaking activities bring together thousands of leading digital entrepreneurs and technology investors throughout the year. Our thought-leading research is read by thousands of decision-makers globally and is regularly cited in leading newspapers and publications.
UNITYFILTER
ECOVADIS NORTHERNTECH AWARDS
Confidential
3535
Our focus sectors
DIGITALMEDIA
DIGITAL SERVICES
SOFTWARE MARKETPLACES FINTECH
Confidential
35
Confidential
36
Ian CarrollDIRECTOR FINANCE
Victoria Palma EhrichsPERSONAL ASSISTANT
Julian RiedlbauerPARTNER
Elsa HuEXECUTIVE DIRECTOR
Alon KupermanEXECUTIVE DIRECTOR
Ravi GhediaDIRECTOR
Joy SioufiEXECUTIVE DIRECTOR
Iman CrisbyEXECUTIVE
DIRECTOR MARKETING
Fraenze GadeVP EVENTS
Nikolas WestphalEXECUTIVE DIRECTOR
Javed HuqDIRECTOR
Karl BlomsterwallASSOCIATE
Joe TabbererVICE PRESIDENT
Johan Roslund VICE PRESIDENT
Marvin MaerzVICE PRESIDENT
Simon MiremadiVICE PRESIDENT
Dave NishVP TECHNOLOGY
Brandon OvermyerVICE PRESIDENT
Simon NichollsPARTNER
Sven RaeymaekersPARTNER
Jon CantwellPARTNER
Joakim DalPARTNER
Alec DaffernerPARTNER
Per RomanMANAGING PARTNER
Hugh CampbellMANAGING PARTNER
Claudio AlvarezPARTNER
Robert AhldinPARTNER
Guillaume BonnetonPARTNER
Manish MadhvaniMANAGING PARTNER
Alexis Scorer EXECUTIVE DIRECTOR
Ben PradeEXECUTIVE DIRECTOR
Alessandro CasartelliEXECUTIVE DIRECTOR
Jack ChanDIRECTOR
Adam BirnbaumDIRECTOR
Oliver SchweitzerEXECUTIVE DIRECTOR
Floris Backer van Ommeren
EXECUTIVE DIRECTOR
Miguel KindelánEXECUTIVE DIRECTOR
Elena BocharovaASSOCIATE
Felix BratellVICE PRESIDENT
Gioia CerbelliASSOCIATE
Charlotte Carew-Gibbs
HR MANAGER
Evgeny YakovlevANALYST
Bev BoettcherOFFICE MANAGER
Susanna AnderssonOFFICE MANAGER
Ashleigh MacDonaldFINANCE MANAGER
Erik AndershedDATA SCIENTIST
Mathilde JakobssonEVENTS & MARKETING
Caoimhe BradleyOFFICE MANAGER
Geneshe EdelmanOFFICE MANAGER
Jade WilliamsPERSONAL ASSISTANT
Victoria MartinPERSONAL ASSISTANT
Michelle HooPERSONAL ASSISTANT
Maria LazarevaPERSONAL ASSISTANT
Joyce ByrneOFFICE MANAGER
Olivia HornsteinOFFICE MANAGER
Maria SosnaOFFICE MANAGER
Maria MartinezOFFICE MANAGER
Ed PriorASSOCIATE
Joaquin del Rio BrionesANALYST
Kevin Siagam ASSOCIATE
Jack CurranASSOCIATE
Pierce Lewis-OakesASSOCIATE
Jaime Sendagorta VICE PRESIDENT
Okan InaltayASSOCIATE
Matthew FinegoldASSOCIATE
Carolin DrewesASSOCIATE
Hampus HellermarkASSOCIATE
Luis Patiño TornosANALYST
Vincent WeiASSOCIATE
Connor SmithANALYST
Rachael Shapiro ASSOCIATE
Joel-Oskar RaisanenANALYST
Manon RodierANALYST
Bulat MardanovASSOCIATE
Alexis MajosANALYST
Pierre Van KempenANALYST
Reda Ben LarbiANALYST
Felix LutjenANALYST
Carl WessbergPARTNER
Greg SmithPARTNER
Dennis KleinANALYST
Freddie DodgeANALYST
Gaia CibrarioANALYST
Candice MostisserANALYST
Sir Martin SmithCHAIRMAN
Staffan IngebornNON-EXECUTIVE
DIRECTOR
Cecilia RomanSENIOR ADVISOR
Seth AlpertSENIOR ADVISOR
Johannes AkermarkDIRECTOR
Eric CrowleyDIRECTOR
Jaime MorenoDIRECTOR STRATEGY
Joy AbiolaVICE PRESIDENT
Praveena MuthukumarVP FINANCE
Dipam PatelVICE PRESIDENT
Adam PageVICE PRESIDENT
Maria MaciagowskaANALYST
Matthew YoungANALYST
Andrea LópezDESIGN COORDINATOR
Ana NavarretePERSONAL ASSISTANT
Confidential
37
Global marquee transactionsBaltic Classifieds Group
ACQUIRED BY
GP Bullhound EcoVadis GP Bullhound InnogamesINVESTED IN INVESTMENT BY INVESTED IN INVESTMENT BY
UNDISCLOSED REALISED(DIRECT LISTING)
$200M ACTIVE €260M VALUATION
Apax Partners Spotify CVC Growth Partners Klarna Modern Times Group
GP BullhoundINVESTED IN
Jellyfish GP Bullhound Filter 13th LabINVESTMENT BY INVESTED IN ACQUIRED BY ACQUIRED BY
Slack Fimalac Group Avito Merkle Facebook
REALISED(DIRECT LISTING)
£500M REALISED (ACQUIRED BY NASPERS)
UNDISCLOSED UNDISCLOSED
Confidential
38
Thought-leading independent technology research –connecting people in the tech industry
GP BULLHOUND INSIGHTS & EVENTS
Titans of Tech ALL CHANGE AT THE TOP
Technology Software Digital Services Fintech PREDICTIONS GLOBAL MARKET
PERSPECTIVESGLOBAL MARKET PERSPECTIVES
GLOBAL MARKET PERSPECTIVES
Summit Northern Tech Investor Conference Market updateMARBELLA AWARDS ALLSTARS RECEPTIONS WEBINARS
39
The information contained in this research report should not be relied upon as being an independent or impartial view of the subject matter and for the purposes of the rules and guidance of the Financial Conduct Authority (“the FCA”) this research report is a marketing communication and a financial promotion. Accordingly, its contents have not been prepared in accordance with legal requirements designed to promote the independence of investment research and it is not subject to any prohibition on dealing ahead of the dissemination of investment research. The individuals who prepared the information contained in this research report may be involved in providing other financial services to the company or companies referenced in this research report or to other companies who might be said to be competitors of the company or companies referenced in this research report. As a result, both GP Bullhound LLP and the individual members, directors, officers and/ or employees who prepared the information contained in this research report may have responsibilities that conflict with the interests of the persons who access this research report.
GP Bullhound LLP and/or connected persons may, from time to time, have positions in, make a market in and/ or effect transactions in any investment or related investment mentioned in this research report and may provide financial services to the issuers of such investments. The information contained in this research report or any copy of part thereof should not be accessed by a person in any jurisdictions where its access may be restricted by law and persons into whose possession the information in this research report comes should inform themselves about, and observe, any such restrictions. Access of the information contained in this research report in any such jurisdictions may constitute a violation of UK or US securities law, or the law of any such other jurisdictions. Neither the whole nor any part of the information contained in this research report may be duplicated in any form or by any means. Neither should the information contained in this research report, or any part thereof, be redistributed or disclosed to anyone without the prior consent of GP Bullhound LLP. GP Bullhound LLP and/or its associated undertakings may from time to time provide investment advice or other services to, or solicit such business from, any of the companies referred to in the information contained in this research report.
Accordingly, information may be available to GP Bullhound LLP that is not reflected in this material and GP Bullhound LLP may have acted upon or used the information prior to or immediately following its publication. In addition, GP Bullhound LLP, the members, directors, officers and/or employees thereof and/or any connected persons may have an interest in the securities, warrants, futures, options, derivatives or other financial instrument of any of the companies referred to in this research report and may from time to time add or dispose of such interests. GP Bullhound LLP is a limited liability partnership registered in England and Wales, registered number OC352636, and is authorised and regulated by the Financial Conduct Authority. Any reference to a partner in relation to GP Bullhound LLP is to a member of GP Bullhound LLP or an employee with equivalent standing and qualifications. A list of the members of GP Bullhound LLP is available for inspection at its registered office, 52 Jermyn Street, London SW1Y 6LX.
For US Persons: This research report is distributed to US persons by GP Bullhound Inc. a broker-dealer registered with the SEC and a member of the FINRA. GP Bullhound Inc. is an affiliate of GP Bullhound LLP. All investments bear certain material risks that should be considered in consultation with an investors financial, legal and tax advisors. GP Bullhound Inc. engages in private placement and mergers and acquisitions advisory activities with clients and counterparties in the Technology and CleanTech sectors.
In the last twelve months, GP Bullhound LLP or an affiliate is or has been engaged as an advisor to and received compensation from, or has invested in the following companies mentioned in this report: Revolut, Monese, Meniga, EcoVadis, RavenPack, Bankable.
No information set out or referred to in this research report shall form the basis of any contract. The issue of this research report shall not be deemed to be any form of binding offer or commitment on the part of GP Bullhound LLP. This research report is provided for use by the intended recipient for information purposes only. It is prepared on the basis that the recipients are sophisticated investors with a high degree of financial sophistication and knowledge. This research report and any of its information is not intended for use by private or retail investors in the UK or any other jurisdiction.
This research report does not provide personalized advice or recommendations of any kind. You, as the recipient of this research report, acknowledge and agree that no person has nor is held out as having any authority to give any statement, warranty, representation, or undertaking on behalf of GP Bullhound LLP in connection with the contents of this research report. Although the information contained in this research report has been prepared in good faith, no representation or warranty, express or implied, is or will be made and no responsibility or liability is or will be accepted by GP Bullhound LLP. In particular, but without prejudice to the generality of the foregoing, no representation or warranty is given as to the accuracy, completeness or reasonableness of any projections, targets, estimates or forecasts contained in this research report or in such other written or oral information that may be provided by GP Bullhound LLP. The information in this research report may be subject to change at any time without notice.
GP Bullhound LLP is under no obligation to provide you with any such updated information. All liability is expressly excluded to the fullest extent permitted by law. Without prejudice to the generality of the foregoing, no party shall have any claim for innocent or negligent misrepresentation based upon any statement in this research report or any representation made in relation thereto. Liability (if it would otherwise but for this paragraph have arisen) for death or personal injury caused by the negligence (as defined in Section 65 of the Consumer Rights Act 2015) of GP Bullhound LLP, or any of its respective affiliates, agents or employees, is not hereby excluded nor is damage caused by their fraud or fraudulent misrepresentation.
This research report should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any security or other financial instrument, nor shall they, or the fact of the distribution, form the basis of, or be relied upon in connection with, any contract relating to such action. The information contained in this research report has no regard for the specific investment objectives, financial situation or needs of any specific entity and is not a personal recommendation to anyone. Persons reading this research report should make their own investment decisions based upon their own financial objectives and financial resources and, if in any doubt, should seek advice from an investment advisor.
Past performance of securities is not necessarily a guide to future performance and the value of securities may fall as well as rise. In particular, investments in the technology sector may be subject to frequent fluctuations. The information contained in this research report is based on materials and sources that are believed to be reliable; however, they have not been independently verified and are not guaranteed as being accurate. The information contained in this research report is not intended to be a complete statement or summary of any securities, markets, reports or developments referred to herein.
This research report may contain forward-looking statements, which involve risks and uncertainties. Forward-looking information is provided for illustrative purposes only and is not intended to serve as, and must not be relied upon as a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and may differ from assumptions.
Any and all opinions expressed are current opinions as of the date appearing on the documents included in this research report.
Disclaimer
LONDON SAN FRANCISCO STOCKHOLM BERLIN
PARISMANCHESTER HONG KONG MADRID NEW YORK
Follow us onRegister to receive GP Bullhound news