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
and FICO's acquisition of Adeptra for
"Acquirers are increasingly looking for the ability to address risk management concerns," said
, 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
, 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
. 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
. Close behind in value was Verisk Analytics' announced acquisition of Argus Information & Advisory Services for
. 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
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
Berkery Noyes 646-442-7966
SOURCE Berkery Noyes