11th February 2020

Hampleton Partners report reveals that 2019 FinTech market shifted towards blockbuster M&A transactions

The latest FinTech M&A market report from Hampleton Partners, the international technology mergers and acquisitions advisor, reveals that 2019 shifted towards blockbuster M&A transactions, historically high deal count levels and impressive valuations the ability to offer solutions that are ubiquitously available and in demand; and scale referring to the number of customers incumbents can gain and retain in the face of non-traditional competition. The new battleground requires new capabilities and incumbents must adapt and acquire now, or they will decline later.”

In 2019, four enormous M&A deals set the record for the largest transactions ever recorded in FinTech history: Fidelity’s acquisition of Worldpay($44bn); Fiserv’s acquisition of First Data($22bn); the merger of Global Payments with Total System Services($21bn); and London Stock Exchange Group’s acquisition of Refinitiv($14bn).Combined, they accounted for a transaction value of almost $101bn.

The largest FinTech disclosed deals of 2H2019 were:
-London Stock Exchange Group’s acquisition of Refinitiv $14.1bn.
-Mastercard International’s acquisition of Nets Holding- $3.2bn.
-BC Partners’ acquisition of Advanced Computer Software Group-$2.2bn.

Simnett continued “Fintech M&A globally is expected to remain a hot sector heading into 2020, particularly given the large M&A deals that have taken place so far this year. The payments vertical will no doubt receive an abundance of investment, while InsurTech, RegTech, WealthTech and B2B platform services are all well positioned for growth.
Fintech investors are, and will continue to be, very selective in deploying capital, favouring larger, more promising fund raises and moving away from the “spray and pray” approach of the early stages of the sector.

Meanwhile, with large technology companies knocking at their doors, incumbent financial institutions must continue to engage aggressively with FinTech disruption, whether by building their own capabilities; by partnering; or by acquiring, given the pace of innovation in the sector.”