M&A VALUATIONS REMAIN RESILIENT DESPITE VOLATILE PUBLIC MARKETS - FINANCIAL TECHNOLOGY & PAYMENTS SECTOR UPDATE | MARCH 2022
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M&A VALUATIONS REMAIN RESILIENT DESPITE
VOLATILE PUBLIC MARKETS
FINANCIAL TECHNOLOGY & PAYMENTS SECTOR UPDATE | MARCH 2022
3
TABLE OF CONTENTS
Overview & Drivers
5 Key Sector Takeaways
6 Converging FinTech and Services Drives Sector Revenue
7 Insurance Technology Segment Poised for Future Growth
8 Push to Bundle Capabilities Spurs FinTech M&A Activity
Subsector M&A Analysis
9 Neobanks Disrupt Bank Technology’s Competitive Landscape
10 Value-Added Services Propel Capital Markets Technology
11 Insurance Technology Targeted as Key Vertical in FinTech
12 Payments Segment Leads FinTech Market
Transaction Highlights
13 Capstone Case Study
14 Notable M&A Transactions
15 Select M&A Transactions
16 Strategic Universe
Venture Capital & Public Market Analysis
17 Venture Capital Activity
18 Capstone’s FinTech Front Runners
19 Initial Public Offering Activity
20 Special Purpose Acquisition Company Activity
21 Public Company Data
Closing Pages
28 Report Contributors
29 Firm Track Record
30 Endnotes
CONTACT OUR FINANCIAL TECHNOLOGY
& PAYMENTS SECTOR EXPERT
David Francione
Head of FinTech & Payments
Managing Director
617-419-2040
dfrancione@capstonepartners.com
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Financial Technology & Payments | September 2021
FINANCIAL TECHNOLOGY COVERAGE VERTICALS
Capstone’s Financial Technology (FinTech) practice provides high-quality corporate finance advice to
software and hardware technology and service providers across the entire Payments spectrum, in addition to
banks, brokerage firms, asset managers, and insurance companies.
We leverage domain expertise to provide high-quality mergers and acquisitions, institutional financing, and
strategic advisory services to private and publicly traded financial technology and information-based
companies globally.
Risk
Management Loan Management
Trading Analytics Digital/Mobile Banking
Securities PayFac
Trading
Capital
Banks
Markets
Gateway Risk
POS
Payments Insurance Assessment
/ Analytics
Processor
Asset
Acquiror/Issuer Mgmt Predictive
Analytics
Payment
Platform
Fraud Credit
Detection Monitoring
Risk Management
FinTech companies are attractive - we make
sure every penny counts.
4
Financial Technology & Payments
M&A Valuations Remain Resilient
KEY SECTOR TAKEAWAYS
Capstone Partners’ Financial Technology & Services group is pleased to share its FinTech & Payments report.
Sector revenue, along with merger and acquisition (M&A), venture capital, initial public offering (IPO), and
special purpose acquisition company (SPAC) activity, experienced record levels in 2021 and are poised for
continued growth through 2022. Key sector takeaways are outlined below, followed by in-depth valuation
analyses at the segment level.
1. Converging technology offerings and services in the FinTech & Payments sector has heightened
competition for market share, resulting in unprecedented revenue gains.
2. Sector M&A activity increased 21.5% year-over-year (YOY) in 2021 with year-to-date (YTD) deal
volume nearly matching 2021 levels as buyers focused on diversifying software and services.
3. Despite volatile public markets, M&A purchase multiples have been the strongest on record
supported by healthy balance sheets and record dry powder levels.
4. Public company valuations and M&A purchase multiples remain heavily dependent on core offerings
and whether those offerings have historically been rooted in services- or software-based models.
5. Financing activity reached record highs in 2021 with many venture capital firms participating in multiple
financing rounds to deploy significant late-stage investments to niche startups across the sector.
6. Exits through public listings for FinTech and payment providers surged in 2021 as venture capital firms
capitalized on the favorable valuation environment.
7. SPACs have also gained considerable momentum in the past year as a public listing vehicle for
FinTech and payment providers, bypassing traditional IPOs with a faster execution process, upfront
price discovery, and additional funding options.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity
firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.
To learn more about Capstone’s wide range of advisory services and FinTech & Payments sector expertise,
please contact our Head of FinTech & Payments at Capstone Partners, David Francione.
5
Financial Technology & Payments | March 2022
CONVERGING FINTECH AND SERVICES DRIVES SECTOR REVENUE
The convergence of technology offerings and services in the FinTech & Payments sector has materialized in
two distinct business models: financial services-led Software-as-a-Service (SaaS) and aggregator platforms.
In either model, the strategies consistently reflect organic and inorganic expansion into various segments of
the FinTech & Payments sector, maintaining ownership of the customer relationship, and capturing a larger
portion of the total addressable market. Heightened competition for market share has resulted in substantial
levels of global sector revenue, amounting to $8.4 trillion in 2021, according to Research and Markets.1
Additionally, sector revenue has been projected to grow at an annualized rate of 23.6%, reaching $56.5 trillion
by 2030.
Top participants utilizing financial services-led SaaS models including Revolut, SoFi (Nasdaq:SOFI), Block
(NYSE:SQ), and Robinhood (Nasdaq:HOOD) began by offering consumer-facing SaaS solutions to build a
steadfast customer base, gradually expanding offerings to include additional services and establish
themselves as users’ primary provider of all FinTech services. Founded in 2011, SoFi has entered nearly all
segments of FinTech including Bank Technology (BankTech), Capital Markets Technology, Insurance
Technology (InsurTech), and the Merchant Acquirer sub-segment of Payments. SoFi reported a revenue
increase of 54% YOY in Q4 2021 ($280 million), largely driven by membership subscription fees, according to
its Q4 2021 investor presentation.2 The recurring revenue derived from subscription fees has provided SoFi
with enhanced financial visibility, especially as the company’s membership base has continued to grow (+87%
YOY in Q4 2021).
Aggregator platforms, such as PayPal (Nasdaq:PYPL), have developed digital marketplaces to connect users to
existing FinTech software and services, collecting transaction fees from third-party applications. As
newcomers enter the market, aggregator platforms have been afforded opportunities to expand their
networks and engage in synergistic acquisitions. PayPal has been an active acquiror in the sector, completing
24 acquisitions since its founding in 1998 including its direct competitor Curv in April 2021 (undisclosed).
While operating almost exclusively in the Payments segment, PayPal now participates in the entire ecosystem
from point-of-sale hardware to payment processing services and digital wallets. PayPal’s strategic
partnerships with third-party applications have supported the company’s ubiquity across discretionary and
everyday consumer spend, driving its annual revenue up 18% YOY in 2021 ($25.4 billion), according to its Q4
2021 investor presentation.3
Unprecedented levels of consolidation and cross-segment expansion have fueled active M&A markets and
robust pricing. Public company valuations and M&A purchase multiples are often heavily dependent on
participants’ core offerings and whether those offerings have historically been rooted in services- or
software-based business models. Segment-specific valuation analyses in the BankTech, Capital Markets
Technology, InsurTech, and Payments segments begins on page nine.
FinTech & Payments Global Sector Revenue to Reach $56.5 Trillion by 2030
$100
U.S. Dollars in Trillions
$80
$56.5
$60
$45.7
$37.0
$40 $29.9
$24.2
$15.9 $19.6
$20 $10.4 $12.8
$8.4
$0
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
Source: Research and Markets
6
Financial Technology & Payments | March 2022
INSURANCE TECHNOLOGY SEGMENT POISED FOR FUTURE GROWTH
The InsurTech segment includes providers using innovative technologies to transform the Insurance sector.
These technologies drive efficiencies and productivity across the entire insurance value chain through two
core verticals: Direct-to-Consumer (DTC) and Enablement Technology. DTC providers operate as digital
insurance vendors offering property and casualty, health and life, and commercial policies via online channels.
The Enablement Technology vertical consists of pure-play software providers and managed services
businesses which focus on product development, distribution, intermediation, underwriting, policy
administration, and claims.
While the competitive landscape of the InsurTech market is characterized by a low level of market share
concentration in comparison with the broader FinTech & Payments sector, participants have found success in
new sub-segments, such as Cyber Risk, and attracting underserved clients including gig economy and
freelance workers. The U.S. InsurTech market is poised for future growth, accelerating at a compound annual
growth rate of 51.7% between 2021 and 2030 to reach $163.8 billion in total revenue, according to Grand View
Research.4 Managed services, namely policy management systems companies, accounted for the lion’s share
of segment revenue in 2021 (42%). Armed with flexible business models, policy management systems providers
partner with traditional brokers to provide software and services in every stage of the policy lifecycle from
development to claims. Recently, participants have begun to add DTC capabilities to their proprietary
platforms. This two-pronged approach enables collaboration between insurance carriers, providing economies
of scale by reducing the costs associated with acquiring and servicing customers.
Leading Direct-to-Consumer InsurTech Providers
Leading Enablement Technology InsurTech Providers
Source: Capstone Research
7
Financial Technology & Payments | March 2022
PUSH TO BUNDLE CAPABILITIES SPURS FINTECH M&A ACTIVITY
M&A volume in the FinTech & Payments sector set FinTech & Payments M&A Volume
an annual record in 2021 with 1,035 transactions Reaches Record High in 2021
announced or completed, representing an increase
of 21.5% YOY. Deal activity has continued at a 1,600
healthy pace in 2022 with 91 transactions
Number of Transactions
announced or completed YTD, slightly trailing 2021
1,200 1,035
levels during the same period (107 deals). Further
consolidation is expected as venture capital 812 852
funding has accelerated startups’ growth 800 608
trajectory, resulting in heightened competition. As
organic growth tends to decelerate for later-stage 400
businesses, M&A has become a key strategic 107 91
option for mature FinTech and payment providers
seeking to expand market presence. 0
2018 2019 2020 2021 YTD YTD
“There will be a consolidation of growth stage 2021 2022
FinTechs as market leaders look to M&A to
accelerate growth and expand markets, while FinTech & Payments Transactions
some later stage companies have trouble hitting with Valuations Exceeding $1 Billion
revenue milestones to justify lofty valuations and
look to M&A markets for soft landings,” said Mark 80
Batsiyan, Co-Founder and Partner at venture
Number of Transactions
capital firm Inspired Capital, in an exclusive
60
interview with Forbes.5
39
In 2021, 39 M&A deals in the FinTech & Payments 40
sector garnered valuations above $1 billion, an 25
increase of 56% YOY. This includes Rocket 20 12
Companies’ (NYSE:RKT) acquisition of Truebill for 8
2 2
an enterprise value of $1.3 billion (completed
0
December 2021). Founded in 2015, Truebill
provides financial management solutions through 2018 2019 2020 2021 YTD YTD
its mobile application to 2.5 million users globally, 2021 2022
adding $100 million in annual recurring revenue to
Rocket’s balance sheet, according to a press Strategic Buyers Lead
release.6 The transaction demonstrates the scale FinTech & Payments M&A Market
and financial stability necessary to reach unicorn
status in the sector. Private Public PE Platform PE Add-On
100%
15.5% 18.1% 21.5% 20.1% 20.9%
Various channels have provided strong streams of
Percent of Transactions
liquidity for FinTech & Payments M&A including 80% 13.5% 8.7% 4.4%
12.6% 10.3%
majority control investments from strategic
60% 31.2% 31.9%
buyers, private equity firms, and SPACs. Strategic 32.6% 32.9%
29.8%
buyers continued to account for the majority of
40%
deals in 2021 (69.6%) and YTD 2022 (74.7%) as
leading players consolidate segment-specific 20% 42.0% 42.9%
38.5% 36.2% 36.6%
capabilities and look to expand into other areas of
the sector. Leveraging $1.4 trillion in dry powder, 0%
sponsors comprised 30.4% of deals in 2021, 2018 2019 2020 2021 YTD
namely focusing on larger add-on acquisitions and 2022
platform investments (see page 14 for notable
Year-to-date (YTD) ended February 1
M&A transactions). Source: Capital IQ, FactSet, PitchBook, and Capstone Research
8
Financial Technology & Payments | March 2022
NEOBANKS DISRUPT BANK TECHNOLOGY’S COMPETITIVE LANDSCAPE
Neobanks, operating as independent, fully-digital financial institutions, have emerged as significant
competitors to traditional banks. Without physical limitations, neobanks such as Nubank (NYSE:NU) and Dave
(NYSE:DAVE) have the potential to capture a larger addressable market by serving unbanked geographies
including Latin America, Southeast Asia, and North Africa. Even before the pandemic, digital business models
were in the ascendance, however, COVID-19 and the rise of neobanks have accelerated the modernization of
customer interfaces and middle- and back-office functions in the Banking sector. As a result, BankTech
providers have experienced heightened demand, with public players achieving average last twelve-month
(LTM) trading multiples of 16.2x EV/EBITDA and 6.5x EV/Revenue. Although digital transformation services
remain a key offering, valuations in the segment have been driven in large by software subscriptions. This is
demonstrated by nCino (Nasdaq:NCNO), a provider of bank digitization services and cloud-based software,
reporting that subscription revenues comprised 80% of its total 2021 revenues, according to the company’s
investor presentation.7 As a result, nCino has led the segment trading at 19.8x EV/Revenue. Average M&A
purchase multiples in the BankTech segment have nearly matched the public market, as strategic buyers
have paid premium valuations to bolster software offerings to serve an array of financial institutions,
exemplified by nCino’s acquisition of mortgage bank software provider SimpleNexus for 28.1x EV/Revenue.
Bank Technology: EV/EBITDA 16.2x
Average Last Twelve-
Month Public Company
EV/Revenue 6.5x
Trading Multiples
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Average Bank Technology EV/EBITDA 16.0x
M&A Purchase Multiples
(2018-YTD 2022) EV/Revenue 6.0x
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Strategic Financial
Bank Technology
M&A Volume 400
Number of Transactions
M&A volume in the Bank
Technology segment 300
238
reached elevated levels in 209 208
2021 with 238 transactions 200 74
161 55
announced or completed. 61
Strategic buyers 47
accounted for the majority 100 19
154 141 164
of deal activity, while 114 4
transactions involving 0 15
financial buyers reached 2018 2019 2020 2021 YTD 2022
historic levels last year.
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
9
Financial Technology & Payments | March 2022
VALUE-ADDED SERVICES PROPEL CAPITAL MARKETS TECHNOLOGY
In conjunction with the accelerating digitization of the financial services ecosystem, many investors have
migrated away from centralized asset classes to self-executing blockchain contracts and digital assets
including cryptocurrencies. Top multi-asset trading platforms have capitalized on the democratization of
capital market investing, operating as a one-stop-shop for non-broker market participants to trade across
asset classes and geographies. While multi-asset trading platforms support personal investments, registered
brokers and financial institutions have focused on strengthening digital tools and engagement as wealth
management remains a relationship-oriented business. As such, public company valuations and M&A
purchase multiples in the Capital Markets Technology segment heavily rely on the value-added, technology-
enabled services offered. Notably, Dye & Durham (TSX:DND) announced its acquisition of Link Administration
Holdings (ASX:LNK) in December 2021 for an enterprise value of $2.6 billion, equivalent to 22.4x EV/EBITDA and
3.1x EV/Revenue, significantly outperforming the Capital Markets Technology segment average of 15.6x
EV/EBITDA. Link provides SaaS-based administration solutions for brokerage firms, large asset owners, and
trustees worldwide. In addition, the company offers a range of value-added services including financial
planning and advice, direct investment options, and trustee services. The acquisition highlights the broader
sector trend of converging software and services within the Capital Markets Technology segment.
Capital Markets
EV/EBITDA 15.6x
Technology:
Average Last Twelve-
Month Public Company EV/Revenue 2.1x
Trading Multiples
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Average Capital Markets
EV/EBITDA 15.6x
Technology M&A
Purchase Multiples
(2018-YTD 2022) EV/Revenue 3.4x
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Strategic Financial
Capital Markets
Technology M&A Volume
400
Number of Transactions
Capital Markets
285
Technology M&A volume 300
reached 285 deals in 2021 217
194 197 93
with heavy participation 200
from strategic buyers 46 39 67
(67%). The segment
comprised 27.5% of total 100 192 18
148 158 150
2021 M&A activity in the 5
FinTech & Payments 0 13
sector, just below the
2018 2019 2020 2021 YTD 2022
Payments segment.
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
10Financial Technology & Payments | March 2022
INSURANCE TECHNOLOGY TARGETED AS KEY VERTICAL IN FINTECH
The InsurTech segment has increasingly attracted interest from venture capital firms and acquirors as
increased competition, evolving risks, elevated customer expectations, and diminishing investment income
have encouraged insurance providers to enhance software and digital capabilities. In 2021, InsurTech
providers accounted for 28.9% of total venture capital funding and only 12.5% of M&A volume, indicating M&A
will become more viable in the long-term as venture capital firms look for exit opportunities. Average M&A
EBITDA purchase multiples in the InsurTech segment have slightly outpaced public markets as SPAC deals
dragged down average valuations for publicly traded InsurTech companies (see page 20 for recent examples).
Historically, the InsurTech segment has been comprised of single-product businesses, offering either car,
home, life, or renters' coverage. Recently, clear winners in the segment have built unified platforms through
acquisitions to serve a variety of customers, exemplified by Lemonade’s (NYSE:LMND) acquisition of
Metromile (Nasdaq:MILE) in November 2021 to bolster the company’s Car Insurance division (see page 14 for
transaction details). Valuations often depend on where the provider falls in the insurance value chain, with
digital full-service providers leading the segment, followed by policy management systems. In a recent
example, Experian (LSE:EXPN) acquired California-based insurance aggregator Gabi for $320 million
(November 2021). The transaction enables Experian to grow its presence in the U.S. Car Insurance market.
Insurance Technology: EV/EBITDA 13.3x
Average Last Twelve-
Month Public Company
EV/Revenue 6.5x
Trading Multiples
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Average Insurance
EV/EBITDA 14.0x
Technology M&A
Purchase Multiples
(2018-YTD 2022) EV/Revenue 3.6x
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Strategic Financial
Insurance Technology
M&A Volume 400
Number of Transactions
M&A volume in the
InsurTech segment 300
rebounded from 2020
lows, with 129 transactions 200
announced or completed 156
124 114 129
in 2021. Although InsurTech 60
only accounted for 12.5% 100 35 46
52 6
of sector deal activity, 89 96 83
62 1
M&A volume is expected 0 5
to increase as the segment 2018 2019 2020 2021 YTD 2022
matures.
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
11Financial Technology & Payments | March 2022
PAYMENTS SEGMENT LEADS FINTECH MARKET
The Payments segment continued to lead sector M&A activity and venture capital funding in 2021, comprising
37% of total M&A deal volume and 40.4% of total venture capital funding. Despite choppy public markets,
M&A purchase multiples have persevered, averaging a robust 14.8x EV/EBITDA and 5.8x EV/Revenue over the
last three years. Acquirors continued to pay premium valuations for quality software assets amid healthy
levels of interest from strategic and private equity buyers. Notably, Visa (NYSE:V) acquired Currencycloud, a
global platform that enables banks and FinTech companies to provide innovative foreign exchange solutions
for cross-border payments, in December 2021 for an enterprise value of $929.6 million. The acquisition builds
on an existing strategic partnership and empowers Visa’s clients with greater transparency, flexibility, and
control when completing international payments or doing business in multiple currencies. Since 2012,
Currencycloud has processed more than $100 billion in cross-border payments and will bring more than 500
clients to Visa’s network, according to a press release.8 The Loan Repayment vertical has also experienced
substantial levels of M&A activity at heightened valuations as cumulative lending deployed by commercial
banks reached a record $2.5 trillion in the U.S. in January 2022, according to Federal Reserve Economic Data.9
Notable deal activity in the Loan Repayment vertical includes the Capstone-advised sale of Payix to Repay
Holdings (Nasdaq:RPAY) in January 2022 (see following page for transaction overview).
Payments: EV/EBITDA 11.9x
Average Last Twelve-
Month Public Company
EV/Revenue 5.3x
Trading Multiples
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Average Payments M&A EV/EBITDA 14.8x
Purchase Multiples
(2018-YTD 2022) EV/Revenue 5.8x
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
Strategic Financial
Payments
M&A Volume 400 383
319
Number of Transactions
Payments M&A volume 102
increased by 20% YOY in 300
248
2021, with 383 transactions 110
announced or completed. 200 62
Strategic buyers 129
comprised nearly three- 281
47
48
fourths of Payments deals 100 186 209
(73%) as private equity 13
82
firms focused on larger 35
0
platform or add-on 2018 2019 2020 2021 YTD 2022
acquisitions.
Year-to-date (YTD) ended February 1
Source: Capital IQ, FactSet, PitchBook, and Capstone Research
12Financial Technology & Payments | March 2022
CAPSTONE CASE STUDY
Capstone Partners advised Payix, a loan
repayment technology firm, on its sale to Repay
Holdings Corporation in January 2022. Founded in
2016 and based in Fort Worth, Texas, Payix is a
leading omnichannel payment technology platform
providing solutions that facilitate payments, data
exchange, and communication to support HAS BEEN ACQUIRED BY
customer service and collection efforts in Loan
Repayment verticals. Payix’s software supports a
wide range of payment options and modalities and
integrates into loan management systems (LMS)
and dealer management systems (DMS) by
providing a SaaS approach to collections systems
and technology.
REPAY acquired Payix on a cash-free, debt-free
basis for up to $115 million. $95 million was paid at
“
closing and up to $20 million may become payable
through an earnout, which is contingent upon Capstone Partners provided
Payix’s 2022 performance. Based on historical our team with unparalleled
growth trends, Payix is expected to generate top- Fintech and M&A experience
line and gross-profit growth in excess of 40% that allowed our management
annually through 2023, according to Capstone’s team and shareholders to
press release.
realize this significant
The acquisition will further enhance Repay’s
transaction. The Capstone
position in the Automotive vertical and accelerate team provided expert advice
its expansion into the attractive Buy Now, Pay all along the way, from the
Later space. Payix also brings a complementary preparation work involved
sales distribution model—driven by deep ahead of time, combined with
integrations with leading LMS and DMS platforms— being able to address
to accelerate new merchant acquisitions and a obstacles along the way.
proprietary software platform that offers a wide
range of omnichannel borrower payment options
via mobile app, web, SMS, agent-assisted, and Chris Chestnut
”
interactive voice response (IVR). Co-Founder & CEO, Payix
Payix’s Core Competencies
Borrower-Facing Software Payment Processing Business Process Optimization
• White-Labeled Mobile Apps • Disclosed Merchant Statements • Back-office Payment Reconciliation
• Borrower Portal • Discounted Lender Rates • Automated Invoices and Updates
• SMS Text Pay • Secure Transactions • Lender Transaction Dashboards
Source: Payix
13Financial Technology & Payments | March 2022
NOTABLE M&A TRANSACTIONS
David Francione,
Head of FinTech & Payments
“We have strong conviction that the global appetite for both investment and M&A
will continue to remain strong this year and in the coming years. For banks and
insurance companies, it’s a race to stay ahead of the competition by adopting
digital technologies to reduce friction in the customer interaction process and
reducing customer acquisition cost, respectively.”
In December 2021, global private equity firm nCino, a pioneer in cloud banking and digital
Thoma Bravo acquired Bottomline Technologies in transformations for the Financial Services industry,
a take-private deal valued at $2.6 billion, acquired SimpleNexus in November 2021 for an
equivalent to 5.4x EV/Revenue. Bottomline offers enterprise value of $1.2 billion, or 28.1x EV/Revenue.
cloud-based bank technology and payment SimpleNexus operates as a leading digital
solutions in the U.S. and Europe. Under the terms of mortgage software provider, serving more than
the agreement, Bottomline shareholders will 300 independent mortgage banks, 80 banks and
receive $57 per share in cash, representing a 42% credit unions, and 41,000 loan originators
premium to Bottomline’s closing stock price on nationwide, according to a press release.11
October 19, 2021, according to a press release.10 SimpleNexus garnered one of the most significant
The partnership with Thoma Bravo will provide revenue purchase multiples in the sector, with
Bottomline with additional capital resources and nCino expecting to realize returns on a $40 billion
greater flexibility to build its market leadership. addressable market.
Lemonade, an AI-enabled insurance company, Clearlake Capital- and TA Associates-backed
acquired Metromile for an enterprise value of Confluence Technologies acquired Investment
~$500 million in November 2021. While Lemonade Metrics for an enterprise value of $500 million in
has been at the forefront of using big data and AI in November 2021. Investment Metrics is a global
residential home insurance, Metromile has been provider of investment data, performance,
trailblazing a parallel path for car insurance. The analytics, and research software solutions, serving
acquisition followed the launch of Lemonade Car 910,000 portfolios with more than $14 trillion in
(November 2021), integrating Metromile’s car- assets under management, according to a press
mounted precision sensors to enhance analytic release.13 The acquisition advances Confluence’s
capabilities for driver behavior and insurance portfolio analytics offerings and expands its
claims. Metromile shareholders will receive presence in the Asset Owner and Asset Allocator
Lemonade common shares at a ratio of 19:1, markets, enabling institutional investors and
according to a press release.12 advisors to achieve better financial outcomes.
14Financial Technology & Payments | March 2022
SELECT M&A TRANSACTIONS
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
UBS Group
01/26/22 Wealthfront Operates an automated wealth management platform. $1,400.0 - -
(SWX:UBSG)
Repay Holdings Develops borrower-facing collections(payments) and
01/18/22 Payix $115.0 CF CF
(Nasdaq:RPAY) communications tools.
Dye & Durham Offers technology-enabled administration solutions for
12/21/21 Link (ASX:LNK) $2,584.1 3.1x 22.4x
(TSX:DND) brokers, large asset owners, and trustees worldwide.
Develops a finance management application designed
12/20/21 Truebill Rocket (NYSE:RKT) $1,275.0 - -
to optimize spending.
Bottomline Provides BankTech and business-to-business payment
12/17/21 Thoma Bravo $2,615.9 5.4x -
(Nasdaq:EPAY) solutions globally.
Assets of National EVO Payments Comprises Merchant Acquiring and Payment Processing
12/16/21 $350.2 - -
Bank Greece (Nasdaq:EVOP) Services business.
12/16/21 eFinPLAN Money Tree Software Develops and operates a financial planning software. - - -
MoneyLion Provides an API for financial services search, acquisition,
12/16/21 Even Financial $440.0 - -
(NYSE:ML) and monetization.
Searchlight Capital
12/04/21 Flowbird Offers mobile payment solutions. - - -
Partners
Provides a digital platform to offer customers alternative
12/01/21 SwitchPay Adumo - - -
payment methods.
Ease2pay Develops a transaction platform with integrated billing
11/29/21 Involtum Holding $32.4 - -
(ENXTAM:EAS2P) and payment systems.
Coinbase Global Designs, develops, and operates a
11/24/21 Breadwinner - - -
(Nasdaq:COIN) cryptocurrency wallet.
Offers an insurance blockchain platform that connects
11/24/21 Insurwave IncubEx - - -
insurance buyers and sellers.
Gabi Personal Develops an insurance management
11/22/21 Experian (LSE:EXPN) $320.0 - -
Insurance mobile application.
KeyBank National Offers a plug-and-play digital payment processing
11/22/21 XUP - - -
Association software platform.
nCino Develops and operates a digital mortgage
11/16/21 SimpleNexus $1,168.3 28.1x -
(Nasdaq:NCNO) software platform.
Metromile Lemonade
11/08/21 Operates a digital insurance platform in the U.S. $500.0 - -
(Nasdaq:MILE) (NYSE:LMND)
Confluence Provides investment performance analytics and
11/03/21 Investment Metrics $500.0 - -
Technologies reporting services.
American First First Cash Operates a financial platform providing alternative
10/28/21 $1,470.0 2.5x -
Finance (Nasdaq:FCFS) lending solutions.
Porch Group Develops and operates a digital mortgage automation
10/27/21 Floify $86.5 - -
(Nasdaq:PRCH) and point-of-sale software.
Distributes cloud-based accounting and investment
10/18/21 Class HUB24 (ASX:HUB) $258.4 6.6x 26.3x
reporting software.
Develops SaaS solutions for the Banking and
10/15/21 Cloud Planet Sage - - -
Finance sectors.
Blue indicates Capstone-advised deal, CF=Confidential
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
15Financial Technology & Payments | March 2022
STRATEGIC UNIVERSE
Capstone has built relationships with and tracked buyers that have been highly acquisitive in the FinTech &
Payments sector, particularly those that have completed notable transactions. Our sector expertise and network
provide us with unique insights into this buyer universe and growth drivers for sector participants.
Leading Strategic Buyers
Leading Financial Buyers
Source: Capstone Research
16Financial Technology & Payments | March 2022
VENTURE CAPITAL ACTIVITY
Capital invested in the FinTech & Payments sector by venture capital firms reached a record high in 2021,
amounting to $186.6 billion compared to $79.9 billion in 2020. The number of venture capital deals in 2021
increased by 33.5% YOY, with many venture capital firms participating in multiple financing rounds to deploy
significant late-stage investments to niche startups, scaling operations for a maximum return on investment upon
exit via public listing or acquisition. Venture capital firms have increasingly deployed investments across the
sector, reducing concentration in the Payments segment.
FinTech & Payments Venture Capital Raises Accelerate in 2021
Total Volume Total Value
12,000 $400
Number of Transactions
9,000 $300
U.S. Dollars in Billions
7,239
5,696 $186.6
6,000 5,333 5,422 $200
4,777
3,900 $79.9
3,382 $105.3
3,000 2,149 $65.1 $100
1,507 $35.1 $41.7
988 $32.2
$35.8
$9.0
$7.6
0 $0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Payment Providers Continue to Account for Lion’s Share of Venture Capital Deployment
Payments Insurance Technology Capital Markets Technology Bank Technology
100%
11.9% 11.5% 12.9%
19.3% 16.9% 19.1% 22.6% 22.9% 21.9%
2.8% 29.0%
Percent of Total Venture Funding
2.7% 14.4%
16.7%
75% 22.0% 13.9% 10.0%
8.2% 6.6% 8.8%
3.5%
33.5%
21.3% 33.6% 25.4% 25.0%
27.2% 31.7% 31.1% 28.9%
50%
63.3%
25% 46.1% 44.6% 42.1% 43.8% 45.5%
40.5% 39.2% 39.4% 40.4%
0%
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: PitchBook and Capstone Research
17Financial Technology & Payments | March 2022
CAPSTONE’S FINTECH FRONT RUNNERS
Capstone’s FinTech Front Runners comprises a series of FinTech and payment startups that have exhibited
exceptional leadership and exceeded revenue growth of 20% in the past two years. To qualify for FinTech Front
Runners, startups must have headquarters in the U.S. and be private as of the date of publication. To be included
in the next volume of Capstone’s FinTech Front Runners please contact David Francione, Head of FinTech &
Payments at Capstone Partners.
FinTech Front Runners Volume 2
Founded: 2012 Founded: 2019 Founded: 2017 Founded: 2012 Founded: 2012
Website Website Website Website Website
Founded: 2018 Founded: 2011 Founded: 2016 Founded: 2017 Founded: 2014
Website Website Website Website Website
Founded: 2016 Founded: 2015 Founded: 2018 Founded: 2012 Founded: 2017
Website Website Website Website Website
Founded: 2018 Founded: 2017 Founded: 2017 Founded: 2015 Founded: 2016
Website Website Website Website Website
Founded: 2011 Founded: 2014 Founded: 2012 Founded: 2016 Founded: 2016
Website Website Website Website Website
Source: PitchBook and Capstone Research
18Financial Technology & Payments | March 2022
INITIAL PUBLIC OFFERING ACTIVITY
Exits through public listings for FinTech and payment providers in 2021 outpaced 2020 by 98%, as venture capital
firms capitalized on the favorable valuation environment, providing substantial returns to their limited partners.
Despite public markets’ erratic start to 2022, Capstone expects IPO activity in the FinTech & Payments sector to
continue through 2022 as financial institutions expand their digitization efforts to insurance, lending, and
mortgage services.
Completed FinTech & Payments IPOs
Total Volume Total Rasied At IPO
160 $100
Number of Completed IPOs
$80
120
U.S. Dollars in Billions
97
$60
80
$66.2
49 $40
42 43 45
36 $13.6
40 31 29
20 20 $9.4 $20
$31.3 $8.5 $6.4
$3.9 $3.5 $4.0
$2.7
0 $0
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: PitchBook and Capstone Research
Recently Completed FinTech & Payments IPOs
Date Valuation Total Raised Post IPO Notable Stock Price
Company Completed At IPO (mm) At IPO (mm) Valuation (mm) Investors IPO to 03/07/22
• Abalone Group
• Absoluto Partners
12/09/21 $38,875.8 $2,602.4 $41,478.2
(NYSE:NU) • Berkshire
Hathaway
• Baseline Ventures
• Coyote Ridge
11/10/21 $2,113.1 $262.7 $2,375.8
Ventures
(Nasdaq:EXFY)
• Delta-v Capital
• BAM Ventures
• CE-Ventures
11/04/21 $1,034.5 $130.5 $1,165.0
• Core Innovation
(Nasdaq:NRDS)
Capital
• Alpha Square
Group
10/13/21 $4,234.3 $660.0 $4,894.3 • Bain Capital
(Nasdaq:AVDX) Ventures
• Fifth Third Bank
• Antares Capital
07/28/21 $1,838.3 $343.2 $2,181.5 • Serent Capital
(NYSE:MLNK) • Thoma Bravo
Source: PitchBook and Capstone Research
19Financial Technology & Payments | March 2022
SPECIAL PURPOSE ACQUISTION COMPANY ACTIVITY
Mergers with SPACs have gained considerable momentum in the past year, particularly as a public listing vehicle
for technology providers, comprising more than one-third of global technology M&A spend in 2021, according to
451 Research.14 FinTech and payment companies have benefited from SPACs as they bypass the difficulties of
traditional IPOs with a faster execution process, upfront price discovery, and additional funding options. Although
SPAC funders often experience lucrative payouts, they also possess the ability to redeem shares prior to the
acquisition target’s public listing which has the potential to damage the entity’s initial market performance.
Outlined below are recent SPAC mergers in the FinTech & Payments sector and SPACs actively searching for
FinTech and payment targets.
VPC Impact Acquisition Reinvent Technology
Holdings III Partners Z
SPAC VPC Impact Acquisition Holdings III merged In August 2021, Hippo (NYSE:HIPO), a digitally-
with digital banking services provider Dave native provider of property and casualty insurance,
(Nasdaq:DAVE) in January 2022. Dave’s banking completed its merger with SPAC Reinvent
products include personal saving and checking Technology Partners Z. Hippo aimed to raise $230
accounts and low interest rate credit lines, million in cash from investors through its SPAC,
accessible through its mobile application. Although however 84% of stockholders redeemed their
Dave’s current enterprise value ($1.8 billion) fell shares prior to the merger and received a risk-free
below the company’s initial valuation of $4 billion, return of five cents per share, according to
Dave has exhibited a strong start in 2022 trading at Forbes.16 As a result, Hippo only raised $37 million
12.1x EV/Revenue with 2021 revenues upon its public market debut. The transaction
outperforming 2020 by 30%, according to the demonstrates the volatile nature of SPACs as a
company’s investor presentation.15 The company’s public listing vehicle, with targets often trading
growth has been attributed to its ability to reach a lower than companies which filed IPOs (see page
total addressable market of 150 million users. 23 for recent share pricing).
Largest SPACs Actively Targeting FinTech & Payments
IPO Total Raised
SPAC Prominent Leadership Target Focus
Date At IPO (mm)
FTAC Hera Acquisition Corp.
03/03/21 $851.5 Betsy Cohen (CEO, Bancorp) Technology, FinTech
(Nasdaq:HERA)
Austerlitz Acquisition
02/25/21 $690.0 Bill Foley (Founder, Fidelity) FinTech
Corporation I (NYSE:AUS)
ScION Tech
12/17/20 $575.0 Andrea Pignataro (CEO, ION Investment Group) FinTech
Growth I (Nasdaq:SCOA)
Fusion Acquisition Corp. II
02/25/21 $500.0 - FinTech, WealthTech
(NYSE:FSNB)
Independence Holdings Steve McLaughlin (CEO, FT Partners) & Jonathan FinTech, Software, Tech-
03/09/21 $495.9
Corp. (Nasdaq:ACQR) Corr (CEO, Ellie Mae) enabled Services
Joff FinTech Acquisition Joel Leonoff (Vice Chairman, Paysafe), Peter Smith
02/04/21 $414.0 FinTech
Corp. (Nasdaq:JOFF) (CFO, Paysafe), & Alok Sama (CFO, SoftBank)
Thunder Bridge Capital David Mangum (CFO, Global Payments) & Peter Financial Services,
02/04/21 $414.0
Partners III (Nasdaq:TBCP) Kight (Founder, CheckFree) FinTech
Note: SPACs actively searching as of March 7, 2022
Source: SPAC Tracker and Capstone Research
20Financial Technology & Payments | March 2022
FINTECH & PAYMENTS PUBLIC COMPANY DATA
% 52 Wk Enterprise EV / LTM EBITDA
Segment High Value Revenue EBITDA Margin
Real Estate Information 36.3% $10,211.1 3.6x 33.2x 31.2%
Investment Research Data 78.3% $19,797.4 10.6x 30.0x 32.8%
Risk Management / Busines Intelligence (BI) 82.5% $22,833.3 6.7x 22.8x 30.2%
Financial Information 73.4% $30,930.6 6.3x 21.2x 27.1%
Card Networks / Associations 85.6% $175,187.8 7.3x 20.9x 30.3%
Financial Systems Software / Processing 65.8% $24,985.7 7.1x 20.6x 25.5%
Merchant Acquirer / Card Solutions 44.9% $15,791.1 6.0x 18.6x 27.5%
Real Estate Mortgage Technology 51.9% $4,977.4 4.5x 17.2x 30.8%
Bank Technology 63.0% $11,233.7 6.5x 16.2x 46.7%
Capital Markets Technology 44.2% $5,088.9 2.1x 15.6x 23.7%
Business Process Outsourcing (BPO) 85.8% $5,361.7 3.1x 14.5x 25.0%
Insurance Technology 40.1% $1,798.8 6.5x 13.3x 16.9%
Payment Technology Solutions 53.4% $16,873.7 9.0x 11.7x 365.8%
Payment Processing 62.8% $11,364.2 5.1x 9.9x 27.2%
Payment Hardware Solutions 47.1% $4,092.8 2.5x 6.7x 20.3%
Payment Services 48.5% $2,113.5 1.8x 3.5x 14.5%
Average Last Twelve Month Trading Multiples By Segment
Mean EV/Revenue Mean EV/EBITDA
60.0x
40.0x
33.2x
30.0x
22.8x 21.2x 20.9x 20.6x
18.6x 17.2x
20.0x 16.2x 15.6x 14.5x 13.3x 11.7x
10.6x 9.9x
6.7x 7.3x 7.1x 6.5x 6.5x 9.0x 6.7x
6.3x 6.0x 5.1x
3.6x 4.5x 3.1x 3.5x
2.1x 2.5x 1.8x
0.0x
Source: Capital IQ as of March 7, 2022
21Financial Technology & Payments | March 2022
PUBLIC COMPANY DATA BY SEGMENT
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/07/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
BANK TECHNOLOGY
Black Knight, Inc. $60.72 72.1% $9,351.7 $12,909.6 $1,475.2 $537.4 36.4% 8.8x 24.0x
Dave Inc. $4.40 28.7% $1,636.8 $1,722.6 $147.3 NM NA 11.7x NM
Deluxe Corporation $32.36 66.9% $1,381.8 $3,126.0 $2,022.2 $342.9 17.0% 1.5x 9.1x
Fidelity National Information $90.47 58.0% $55,149.7 $74,201.7 $13,877.0 $4,143.0 29.9% 5.3x 17.9x
Fiserv, Inc. $97.32 76.4% $63,471.8 $85,608.8 $16,226.0 $5,761.0 35.5% 5.3x 14.9x
Jack Henry & Associates, Inc. $185.33 99.8% $13,496.7 $13,764.3 $1,866.0 $513.8 27.5% 7.4x 26.8x
MeridianLink, Inc. $18.21 62.8% $1,465.5 $1,792.4 $257.6 $93.8 36.4% 7.0x 19.1x
nCino, Inc. $49.05 61.8% $5,382.0 $5,049.1 $255.5 NM NA 19.8x NM
Nu Holdings Ltd. $7.16 58.5% $33,204.8 NM $850.0 NA NA NM NM
Q2 Holdings, Inc. $60.20 51.9% $3,427.1 $3,621.3 $498.7 NM NA 7.3x NM
Silverlake Axis Ltd $0.22 86.8% $579.4 $383.5 $162.3 $218.4 134.6% 2.4x 1.8x
SoFi Technologies, Inc. $10.00 40.1% $9,104.5 $0.0 $977.3 NA NA NM NM
Temenos AG $83.94 50.1% $6,012.5 $6,826.8 $967.0 $382.1 39.5% 7.1x 17.9x
Mean 63.0% $12,376.2 $11,233.7 $2,142.1 $1,121.3 46.7% 6.5x 16.2x
Median 62.3% $5,697.3 $3,373.7 $908.5 $382.1 36.4% 7.0x 17.9x
BUSINESS PROCESS
OUTSOURCING
Encore Capital Group, Inc. $66.46 91.5% $1,630.3 $4,535.7 $1,614.5 $700.6 43.4% 2.8x 6.5x
ExlService Holdings, Inc. $123.26 84.3% $4,092.9 $4,126.4 $1,122.3 $234.7 20.9% 3.7x 17.6x
Genpact Limited $41.94 77.6% $7,766.2 $8,861.0 $4,022.2 $758.6 18.9% 2.2x 11.7x
WNS (Holdings) Limited $82.28 89.9% $4,017.0 $3,923.7 $1,054.9 $176.2 16.7% 3.7x 22.3x
Mean 85.8% $4,376.6 $5,361.7 $1,953.5 $467.5 25.0% 3.1x 14.5x
Median 87.1% $4,055.0 $4,331.1 $1,368.4 $467.6 19.9% 3.2x 14.6x
MERCHANT AQUIRER /
CARD SOLUTIONS
Alliance Data Systems Corporation $60.98 47.6% $3,045.8 $18,366.8 $3,655.0 $0.3 NM NM 16.4x
Block, Inc. $106.52 36.8% $61,787.8 $62,031.8 $17,661.2 $0.0 2.4% 3.5x NM
FLEETCOR Technologies, Inc. $226.33 76.6% $17,628.1 $22,216.6 $2,833.7 $0.5 52.9% 7.8x 14.8x
Marqeta, Inc. $9.50 25.1% $5,131.3 $3,478.3 $450.0 NA NA 7.7x NM
Priority Technology Holdings, Inc. $5.28 57.7% $404.6 $1,219.1 $476.9 $0.1 13.8% 2.6x 18.6x
StoneCo Ltd. $9.73 12.3% $3,005.9 $3,060.1 $692.0 $0.3 29.2% 4.4x 15.1x
WEX Inc. $161.97 69.8% $7,261.2 $8,945.2 $1,850.5 $0.3 29.6% 4.8x 16.3x
Mean 44.9% $13,130.7 $15,791.1 $3,530.9 $0.3 27.5% 6.0x 18.6x
Median 42.2% $5,956.0 $7,978.0 $1,271.3 $0.3 29.4% 4.8x 16.4x
Shading indicates public listing via special purpose acquisition company
EV = enterprise value; LTM = last twelve months
NM = not meaningful; $ in millions except per share data Source: Capital IQ as of March 7, 2022
22Financial Technology & Payments | March 2022
PUBLIC COMPANY DATA BY SEGMENT (CONTINUED)
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/07/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
CARD NETWORKS /
ASSOCIATIONS
American Express Company $172.95 86.7% $131,330.4 NM $43,799.0 NM NM NM NM
Discover Financial Services $110.22 81.2% $31,402.1 NM $11,869.0 NM NM NM NM
HCA Healthcare, Inc. $265.41 98.4% $80,578.5 $118,180.5 $58,752.0 $13,633.0 23.2% 2.0x 8.7x
Mastercard Incorporated $330.76 82.4% $323,310.1 $329,562.1 $18,884.0 $10,994.0 58.2% 17.5x 30.0x
Visa Inc. $200.29 79.3% $420,202.6 $428,196.6 $25,477.0 $17,846.0 70.0% 16.8x 24.0x
Mean 85.6% $197,364.7 $175,187.8 $31,756.2 $8,494.6 30.3% 7.3x 20.9x
Median 82.4% $131,330.4 $118,180.5 $25,477.0 $10,994.0 23.2% 2.0x 24.0x
INSURANCE TECHNOLOGY
CCC Intelligent Solutions Holdings $10.69 79.4% $6,543.8 $7,228.2 $688.3 NM NA 10.5x NM
Duck Creek Technologies, Inc. $22.07 43.4% $2,915.4 $2,591.7 $274.9 $17.7 6.5% 9.4x NM
Ebix, Inc. $24.68 61.9% $763.7 $1,386.0 $950.2 $138.8 14.6% 1.5x 10.0x
EverQuote, Inc. $12.92 30.6% $387.8 $361.2 $418.5 NM NA 0.9x NM
HCI Group, Inc. $58.41 41.8% $598.7 $199.0 $365.9 $25.7 7.0% 0.5x 7.7x
Hippo Holdings Inc. $1.68 15.2% $945.3 $168.9 $75.5 NM NA 2.2x NM
InsuraGuest Technologies Inc. $0.15 42.2% $8.8 $8.0 $0.2 NM NA 32.8x NM
Lemonade, Inc. $19.54 16.9% $1,205.4 $957.1 $128.4 NM NA 7.5x NM
Porch Group, Inc. $6.09 22.1% $596.6 $689.0 $192.4 NM NA 3.6x NM
Root, Inc. $1.49 9.7% $378.5 -$201.4 $345.4 NM NA -0.6x NM
Sapiens International Corporation $26.14 68.2% $1,432.8 $1,371.0 $461.0 $78.5 17.0% 3.0x 17.5x
Mean 39.2% $1,434.2 $1,341.7 $354.6 $65.2 11.3% 6.5x 11.7x
Median 41.8% $763.7 $689.0 $345.4 $52.1 10.8% 3.0x 10.0x
INVESTMENT RESEARCH DATA
Envestnet, Inc. $73.37 85.3% $4,022.1 $4,561.1 $1,186.5 $163.6 13.8% 3.8x 27.9x
Morningstar, Inc. $267.18 76.3% $11,478.7 $11,464.1 $1,699.3 $438.9 25.8% 6.7x 26.1x
MSCI Inc. $497.78 73.2% $40,453.7 $43,367.0 $2,043.5 $1,203.4 58.9% 21.2x 36.0x
Mean 78.3% $18,651.5 $19,797.4 $1,643.1 $602.0 32.8% 10.6x 30.0x
Median 76.3% $11,478.7 $11,464.1 $1,699.3 $438.9 25.8% 6.7x 27.9x
Shading indicates public listing via special purpose acquisition company
EV = enterprise value; LTM = last twelve months
NM = not meaningful; $ in millions except per share data Source: Capital IQ as of March 7, 2022
23Financial Technology & Payments | March 2022
PUBLIC COMPANY DATA BY SEGMENT (CONTINUED)
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/07/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
CAPITAL MARKETS TECHNOLOGY
Coinbase Global, Inc. $165.75 38.6% $36,378.7 $33,163.5 $7,837.3 $4,561.7 58.2% 4.2x 7.3x
FD Technologies Plc $21.28 53.8% $592.0 $642.3 $338.8 $23.7 7.0% 1.9x 27.1x
Iress Limited $8.03 71.4% $1,503.8 $1,741.6 $433.3 $96.6 22.3% 4.0x 18.0x
MarketWise, Inc. $4.99 29.4% $125.5 -$387.2 $509.4 NM NA -0.8x NM
Robinhood Markets, Inc. $10.96 12.9% $9,513.2 NM $1,815.1 $0.0 0.0% NM NM
SelfWealth Limited $0.15 31.8% $36.5 NM $14.4 $0.0 0.0% NM NM
Vinci Partners Investments Ltd. $12.67 71.8% $711.2 $461.8 $83.5 $45.8 54.9% 5.5x 10.1x
Mean 44.2% $6,980.1 $5,088.9 $1,576.0 $788.0 23.7% 2.1x 15.6x
Median 38.6% $711.2 $461.8 $433.3 $34.8 14.7% 1.9x 14.0x
FINANCIAL INFORMATION
Ebix, Inc. $24.68 61.9% $763.7 $1,386.0 $950.2 $138.8 14.6% 1.5x 10.0x
Equifax Inc. $227.67 75.9% $27,795.0 $33,001.1 $4,923.9 $1,665.6 33.8% 6.7x 19.8x
FactSet Research Systems Inc. $413.05 83.4% $15,612.1 $15,760.2 $1,628.0 $601.0 36.9% 9.7x 26.2x
Informa plc $7.10 85.5% $10,503.7 $13,435.1 $2,120.4 $351.8 16.6% 6.3x 38.2x
Moody's Corporation $325.84 79.9% $60,618.5 $66,901.5 $6,218.0 $3,287.0 52.9% 10.8x 20.4x
NerdWallet, Inc. $9.62 27.9% $633.3 $465.5 $379.6 $6.2 1.6% 1.2x NM
Pearson plc $8.02 68.7% $6,042.9 $6,712.8 $4,641.7 $805.7 17.4% 1.4x 8.3x
S&P Global Inc. $407.55 84.2% $147,981.4 $149,949.4 $8,297.0 $4,710.0 56.8% 18.1x 31.8x
TransUnion $96.22 76.8% $18,464.6 $23,275.1 $2,960.2 $1,034.3 34.9% 7.9x 22.5x
Trifast plc $1.64 72.9% $220.9 $245.3 $284.8 $17.4 6.1% 0.9x 14.1x
Wolters Kluwer N.V. $103.73 90.3% $26,778.4 $29,104.3 $5,425.9 $1,441.0 26.6% 5.4x 20.2x
Mean 73.4% $28,674.0 $30,930.6 $3,439.1 $1,278.1 27.1% 6.3x 21.2x
Median 76.8% $15,612.1 $15,760.2 $2,960.2 $805.7 26.6% 6.3x 20.3x
PAYMENT HARDWARE SOLUTIONS
Diebold Nixdorf, Incorporated $7.21 41.7% $564.9 $2,442.5 $3,905.2 $314.0 8.0% 0.6x 7.8x
Lightspeed Commerce Inc. $22.39 17.2% $3,322.4 $2,425.9 $484.2 NM NA 5.0x NM
NCR Corporation $36.52 73.0% $4,963.1 $10,869.1 $7,156.0 $1,239.0 17.3% 1.5x 8.8x
PayPoint plc $7.27 74.1% $497.7 $525.0 $185.3 $65.7 35.4% 2.8x 8.0x
PAX Global Technology Limited $0.72 50.9% $778.1 $355.8 $827.8 $168.6 20.4% 0.4x 2.1x
Toast, Inc. $17.89 25.6% $9,105.6 $7,938.6 $1,705.0 NM NA 4.7x NM
Mean 47.1% $3,205.3 $4,092.8 $2,377.2 $446.8 20.3% 2.5x 6.7x
Median 46.3% $2,050.2 $2,434.2 $1,266.4 $241.3 18.8% 2.2x 7.9x
Shading indicates public listing via special purpose acquisition company
EV = enterprise value; LTM = last twelve months
NM = not meaningful; $ in millions except per share data Source: Capital IQ as of March 7, 2022
24Financial Technology & Payments | March 2022
PUBLIC COMPANY DATA BY SEGMENT (CONTINUED)
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/07/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
FINANCIAL SYSTEMS SOFTWARE /
PROCESSING
Avalara, Inc. $94.89 49.5% $8,301.6 $7,802.1 $699.0 NM NA 11.2x NM
BlackLine, Inc. $69.94 51.8% $4,143.1 $4,106.7 $425.7 NM NA 9.6x NM
Broadridge Financial Solutions, Inc. $147.44 79.5% $17,216.9 $21,380.9 $5,373.9 $1,184.8 22.0% 4.0x 18.0x
Coupa Software Incorporated $113.75 36.9% $8,494.9 $9,462.6 $695.5 NM NA 13.6x NM
Fidelity National Information $90.47 58.0% $55,149.7 $74,201.7 $13,877.0 $4,143.0 29.9% 5.3x 17.9x
Guidewire Software, Inc. $88.64 67.7% $7,384.4 $7,002.3 $739.4 NM NA 9.5x NM
i3 Verticals, Inc. $24.39 67.8% $538.3 $898.6 $253.4 $37.2 14.7% 3.5x 24.2x
Intuit Inc. $464.95 64.9% $131,493.7 $137,316.7 $11,414.0 $3,130.0 27.4% 12.0x 43.9x
Linedata Services S.A. $43.99 90.2% $280.6 $349.6 $182.2 $54.0 29.6% 1.9x 6.5x
SimCorp A/S $75.72 58.2% $2,983.2 $2,975.5 $564.4 $135.8 24.1% 5.3x 21.9x
SS&C Technologies Holdings, Inc. $75.67 89.2% $19,401.7 $25,129.6 $5,051.0 $1,871.8 37.1% 5.0x 13.4x
The Sage Group plc $8.70 76.4% $8,857.0 $9,201.9 $2,492.4 $484.0 19.4% 3.7x 19.0x
Mean 65.8% $22,020.4 $24,985.7 $3,480.7 $1,380.1 25.5% 7.1x 20.6x
Median 66.3% $8,398.3 $8,502.0 $719.2 $834.4 25.7% 5.3x 18.5x
PAYMENT PROCESSING
Euronet Worldwide, Inc. $103.48 61.7% $5,293.8 $5,078.5 $2,995.4 $491.3 16.4% 1.7x 10.3x
EVERTEC, Inc. $39.29 76.9% $2,827.7 $3,065.4 $589.8 $256.7 43.5% 5.2x 11.9x
Expensify, Inc. $18.51 36.3% $1,500.7 $1,548.1 $128.2 $19.6 15.3% 12.1x NM
Global Payments Inc. $128.03 58.0% $36,100.4 $47,022.8 $8,523.8 $3,755.2 44.1% 5.5x 12.5x
InnoTec TSS AG $12.22 80.9% $117.0 $106.1 $131.9 $22.0 16.7% 0.8x 4.8x
Nuvei Corporation $47.44 33.6% $6,780.7 $7,010.7 $627.4 $0.4 36.8% 11.2x 30.4x
Paya Holdings Inc. $5.45 40.1% $719.5 $814.6 $249.4 $52.6 21.1% 3.3x 15.5x
Repay Holdings Corporation $15.1 84.9% $1,313.2 $1,761.8 $219.3 $53.0 24.2% 8.0x 31.7x
Mean 62.8% $9,167.9 $11,364.2 $2,473.8 $909.0 27.2% 5.1x 9.9x
Median 61.7% $2,827.7 $3,065.4 $589.8 $256.7 16.7% 5.2x 11.1x
PAYMENT SERVICES
Cass Information Systems, Inc. $39.56 81.5% $541.8 $31.7 $155.2 $44.0 28.3% 0.2x 0.7x
Green Dot Corporation $24.80 45.2% $1,362.8 $0.0 $1,433.0 $0.0 0.0% 0.0x NM
MoneyGram International, Inc. $10.65 NA $971.7 $1,659.5 $1,283.6 $259.7 20.2% 1.3x 6.4x
The Western Union Company $17.76 66.7% $6,989.0 $8,992.1 $5,070.8 $1,372.0 27.1% 1.8x 6.6x
Wise plc $5.89 37.9% $5,859.3 -$1,135.4 $655.0 $77.9 11.9% -1.7x -14.6x
Mean 48.5% $3,068.7 $2,113.5 $1,514.6 $298.3 14.5% 1.8x 3.5x
Median 45.2% $1,936.3 $1,237.0 $969.3 $65.3 16.1% 1.5x 6.5x
Shading indicates public listing via special purpose acquisition company
EV = enterprise value; LTM = last twelve months
NM = not meaningful; $ in millions except per share data Source: Capital IQ as of March 7, 2022
25Financial Technology & Payments | March 2022
PUBLIC COMPANY DATA BY SEGMENT (CONTINUED)
Price % 52 Wk Market Enterprise LTM EV / LTM
Company 03/07/22 High Cap Value Revenue EBITDA Margin Revenue EBITDA
PAYMENT TECHNOLOGY
SOLUTIONS
ACI Worldwide, Inc. $32.09 78.0% $3,692.4 $4,706.4 $1,370.6 $296.7 21.6% 3.4x 15.9x
AvidXchange Holdings, Inc. $8.75 31.9% $1,716.9 $2,594.6 $232.0 NM NA 11.2x NM
Bill.com Holdings, Inc. $205.26 58.9% $21,261.6 $20,338.5 $412.8 NM NA 49.3x NM
EVO Payments, Inc. $22.87 71.5% $1,085.3 $2,322.7 $496.6 $165.6 33.3% 4.7x 14.0x
Mitek Systems, Inc. $14.04 60.3% $621.9 $591.4 $126.3 $38.1 30.2% 4.7x 15.5x
Paymentus Holdings, Inc. $20.74 52.9% $2,509.9 $2,350.3 $395.5 $27.6 7.0% 5.9x NM
PayPal Holdings, Inc. $99.91 32.2% $116,395.6 $116,705.6 $25,371.0 $5,398.0 21.3% 4.6x 21.6x
Paysafe Limited $2.99 17.3% $2,163.9 $4,783.7 $1,487.0 $342.1 23.0% 3.2x 14.0x
QIWI plc $5.67 49.2% $354.0 -$211.4 $588.7 $14,146.0 2402.8% -0.4x 0.0x
Mean 53.4% $16,425.9 $16,873.7 $3,360.0 $2,918.6 365.8% 9.0x 11.7x
Median 58.9% $1,716.9 $2,594.6 $496.6 $296.7 28.3% 4.6x 14.0x
RISK MANAGEMENT /
BUSINESS INTELLIGENCE
Cognizant Technology Solutions $88.88 96.1% $46,620.7 $45,556.7 $18,507.0 $3,666.0 19.8% 2.5x 12.4x
Fair Isaac Corporation $497.23 89.8% $13,067.0 $14,589.1 $1,326.5 $483.5 36.4% 11.0x 30.2x
GlobalData Plc $17.31 77.1% $2,042.5 $2,321.3 $256.3 $68.5 26.7% 9.1x 33.9x
NICE Ltd. $226.51 NA $14,271.5 $13,760.5 $1,921.2 $473.9 24.7% 7.2x 29.0x
Open Text Corporation $42.34 76.6% $11,419.5 $14,402.2 $3,435.6 $1,155.1 33.6% 4.2x 12.5x
Pegasystems Inc. $82.21 57.2% $6,711.0 $7,033.7 $1,211.7 NM NA 5.8x NM
Progress Software Corporation $44.28 82.0% $1,956.3 $2,393.4 $531.3 $188.8 35.5% 4.5x 12.7x
RELX PLC $29.85 92.2% $57,549.1 $65,548.0 $9,808.8 $2,208.0 22.5% 6.7x 29.7x
Verisk Analytics, Inc. $187.70 81.1% $30,272.8 $33,623.5 $2,998.6 $1,383.4 46.1% 11.2x 24.3x
Wolters Kluwer N.V. $103.73 90.3% $26,778.4 $29,104.3 $5,425.9 $1,441.0 26.6% 5.4x 20.2x
Mean 82.5% $21,068.9 $22,833.3 $4,542.3 $1,229.8 30.2% 6.7x 22.8x
Median 82.0% $13,669.3 $14,495.7 $2,459.9 $1,155.1 26.7% 6.2x 24.3x
Shading indicates public listing via special purpose acquisition company
EV = enterprise value; LTM = last twelve months
NM = not meaningful; $ in millions except per share data Source: Capital IQ as of March 7, 2022
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