This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Berkery Noyes Releases Financial Technology And Information Industry M&A Report For Third Quarter 2012

NEW YORK, Oct. 10, 2012 /PRNewswire/ -- Berkery Noyes, an independent mid-market investment bank, today released its third quarter 2012 mergers and acquisitions trend report for the Financial Technology and Information Industry.

The report analyzes M&A activity for the sector during the first three quarters of 2012 and compares it with data covering 2011. This market includes information and technology companies in capital markets, payments, banking, insurance, and other related financial services.

Berkery Noyes' research showed that total volume in third quarter 2012 remained constant compared to the second quarter. Total transaction value fell 55 percent, from $7.7 billion to $3.5 billion. Nonetheless, deal flow in the first three quarters of 2012 increased 13 percent compared to the same timeframe in 2011, while deal value increased four percent. The median revenue multiple from 2011 through the first three quarters of 2012 stayed the same at 2.5x, and the median EBITDA multiple declined from 11.5x to 11.0x.

The Banking segment had the largest quarterly increase in transaction volume within the report, undergoing a 50 percent rise from second to third quarter 2012. It was led by Fidelity National Financial, which through third quarter 2012 acquired DRI Management Systems, ICS Risk Advisors, and Memento. Moreover, two of the segment's top three acquisitions year-to-date in terms of value occurred in third quarter 2012. This consisted of Walter Investment Management's announced acquisition of Reverse Mortgage Solutions for $120 million and FICO's acquisition of Adeptra for $115 million.

"Acquirers are increasingly looking for the ability to address risk management concerns," said John Guzzo, Managing Director at Berkery Noyes. "At the same time, businesses are implementing platforms to better communicate with their customers in order to identify fraud issues as they occur. These loss prevention efforts have significant upside for mitigating potential long-term costs."

M&A in the Capital Markets segment, after increasing 76 percent from first to second quarter 2012, leveled-off 13 percent in the third quarter. "Institutions are integrating their financial data to meet reporting requirements," said Peter Ognibene, Managing Director at Berkery Noyes. "Post Dodd-Frank and Basel III, acquirers are very interested in tools that will help consolidate data and satisfy the new regulatory framework. Such solutions are an important means of improving operations and bolstering competitiveness."

The largest Capital Markets transaction in third quarter 2012, and the second largest year-to-date, was Thomson Reuters' announced acquisition of FXall for $557 million. Regarding transactions that involved well known media information providers in the space, TheStreet acquired The Deal LLC and MergerMarket acquired Inframation Group during the quarter.

The Payments segment experienced a 23 percent increase in transaction volume throughout the last three months, overtaking Capital Markets as the most active Financial Technology segment for the first time this year. The largest related transaction in third quarter 2012 was Global Payments' acquisition of Accelerated Payment Technologies for $413 million. Close behind in value was Verisk Analytics' announced acquisition of Argus Information & Advisory Services for $405 million. In addition, the highest value mobile payments transaction through third quarter 2012 – a subsector that improved 150 percent compared to the first three quarters of 2011 – was Monitise's acquisition of Clairmail for $174 million.

A copy of the FINANCIAL TECHNOLOGY AND INFORMATION INDUSTRY M&A REPORT FOR THIRD QUARTER 2012 is available at the Berkery Noyes website.

Berkery Noyes specializes in mergers and acquisitions and financial consulting services for companies in the $25 million to $500 million range, a market that is enjoying a surge in activity. Long having been an innovator in database and research technology in M&A, Berkery Noyes has committed itself to providing more expansive and current information. The firm's research teams publish acquisition activity in the respective sectors they follow on MandAsoft.com.

­­­Contact Information: Peter Wilson Berkery Noyes 646-442-7966 peter.wilson@berkerynoyes.com

SOURCE Berkery Noyes

Copyright 2011 PR Newswire. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,191.37 -195.84 -1.13%
S&P 500 2,002.16 -27.39 -1.35%
NASDAQ 4,637.9940 -43.5030 -0.93%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs