Blockchain
Global Fintech M&A continues two-year climb to defy broader M&A slowdown, says Hampleton Partners’ report
Embedded finance applications, crypto, blockchain and OpenAPI banking services surge
‘Potential recession won’t dampen Fintech M&A as it did in 2008’
London, UK – 14 September 2022. The latest Hampleton Partners’ Fintech M&A Report, reveals that global Fintech M&A rose sharply in the first half of 2022 with 591 recorded deals, defying the broader M&A slowdown.
The report, by the international M&A and corporate finance advisory firm for technology companies, showed a 46 per cent increase on 1H2021 numbers (406 Fintech deals), and a massive 70 per cent increase on 1H2019 pre-pandemic figures (348 Fintech deals).
Meanwhile, valuations remained steady: 1H2022 saw the trailing 30-month median revenue multiple at 3.1x – broadly in line with the levels seen in the past two years. The trailing 30-month median EBITDA multiple came in at 14.2x, still in the 13-15x range Hampleton has monitored since 2015.
Miro Parizek, founder and principal partner, Hampleton Partners, said: “Fintech is proving to be a very attractive target for financial and strategic dealmakers, defying the broader global M&A slowdown.
“As for the impact of any potential recession, there is one major difference between now and the previous real recession of 2008. This year, deployable private capital, including buyout, VC, growth and real estate, hit its highest level in history at $3.6 trillion – three times the figure in 2008.
“The availability of capital is driving buyers and investors to increase their acquisitions at a time when their pockets are full and high-growth Fintech companies are being sold at all-time affordable prices. Any potential recession won’t dampen Fintech M&A as it did in 2008.”
New technologies driving Fintech M&A
The Crypto & Blockchain segment experienced a significant jump in the number of deals in the past 12 months, with a total of 107 transactions recorded, a 75 per cent growth year over year.
As blockchain technology enables monetisation in the metaverse, companies are piling in to create digital assets. In February, investment firm Republic Realm paid a record $4.3 million for land in Sandbox, currently the largest metaverse platform. In May 2022, US-based Descrypto Holdings acquired OpenLocker, a provider of an online NFT trading portal & marketplace for $11 million.
Open banking APIs are expected to transform the market, following the introduction of European PSD2 regulation, requiring banks to offer APIs so that customer data can integrate more effectively with third-party services. Open banking features are expected to have 64 million users by 2024, a five-fold increase relative to 2020[1].
In May 2022, Yapily Limited acquired finAPI, a provider of open banking, data intelligence, Know Your Customer (KYC) and payment SaaS worldwide. Yapily has focused its efforts on official API integrations covering thousands of banks, consolidating its position in Germany and Europe.
Embedded finance provided by companies such as Stripe, Clearpay and Clear Bank, are on the rise. They embed payment and credit products in checkout seamlessly to satisfy customers’ needs. The global market for embedded finance is estimated to reach $7.2 trillion by 2030[2].
Healthy future for Fintech M&A
Miro Parizek continued: “Many Fintech companies raised significant investment capital recently. Some will grow and mature to become serial acquirers in their niches. Many other Fintechs will be sellers in what continues to be an attractive M&A market.
“As increasing numbers of private Fintech companies run out of money needed to fuel and maintain their operations, their options will be to raise capital from venture capital firms; sell to private equity or strategic acquirers; or entirely shut down business operations. These options make a sale appear attractive.
“At the same time, public companies with massive capital and PE with large amounts of dry powder, well financed late-stage high-growth private companies, and traditional financial services companies looking to remain relevant, are on the lookout for good assets in the sector.
“These two sides of the equation are bound to increase overall M&A activity in the Fintech sector.”
Hampleton Partners’ Fintech M&A Report analyses transactions, trends and activity across the Financial Management Solutions, Payments, Banking/Lending Technology, Crypto and Blockchain and Wealth & Capital Markets Technology segments.
Download the full Hampleton Partners’ Fintech M&A Market Report 2H2022: https://www.hampletonpartners.com/reports/fintech-report/
[1] McKinsey Report
[2] Forbes, 2022
ENDS
For interview requests, copy of the report or photography, please contact:
Jane Henry
Marylebone Marketing
[email protected]
+44 789 666 8155
Note to Editors:
Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com).
About Hampleton Partners
Hampleton Partners is at the forefront of international mergers and acquisitions and corporate finance advisory for companies with technology at their core. Hampleton’s experienced deal makers have built, bought and sold over 100 fast-growing tech businesses and provide hands-on expertise and unrivalled advice to tech entrepreneurs and companies which are looking to accelerate growth and maximise value.
With offices in London, Frankfurt, Stockholm and San Francisco, Hampleton offers a global perspective with sector expertise in: Artificial Intelligence, Autotech, Cybersecurity, Digital Commerce, Enterprise Software, Fintech, Healthtech, HR Tech, Insurtech and IT & Business Services.
Follow Hampleton on LinkedIn and Twitter.
For more information visit https://www.hampletonpartners.com.
Source: RealWire
Blockchain
UNICC and ShelterZoom Developed a Secure Document Tracking and E-Signature Solution for the UN System
The United Nations International Computing Center (UNICC) and ShelterZoom are pleased to announce a new innovative blockchain-based solution for controlling and protecting the digital data of UN entities and other international organizations. As the largest strategic partner for digital solutions and cybersecurity within the UN system, UNICC has partnered with ShelterZoom, a leading data and content protection and ownership SaaS company behind innovations such as Document Token® technology and Document GPS®.
Building upon the 50 years of experienced innovation from the UNICC, the two organizations collaborated on a transformational undertaking offering robust protection and promising increased productivity for document tracking and management. ShelterZoom will contribute its proprietary document tokenization technology, along with its data protection, document tracking and e-signature solutions to deliver a white-labeled platform, giving member organizations a greater level of governance over their content. Using ShelterZoom’s flagship proprietary Single Source Of Truth® technology, the solution provides a means for each file to be protected individually without changing user normal habits instead of having to rely solely on protecting files at the database level. This ‘singularity and control’ is a new era in cybersecurity and document management, which has never been seen before at this level of seamless integration with existing tools.
“The synergy between what we deliver and the goals of the United Nations are a perfect match for Single Source Of Truth,” said Chao Cheng-Shorland, CEO and Cofounder of ShelterZoom. “We have said from the beginning that it is time to think about cybersecurity in a completely new way and in doing so we have created a solution to address other operational pain points while simultaneously solving one of the biggest challenges facing the global population today. The UN is at the frontlines of changing the world for the better and its forward-thinking approach to using technology to address fundamental issues is critical in improving livelihoods for all.”
ShelterZoom solutions have already been in use across dozens of industries and with this new commercial partnership, they can now extend their usefulness to the UN family and other international organizations. The revolutionary method for complete document tracking with built-in productivity tools, such as digital signatures and a market-first method for organizing files inside email, is an all-in-one solution built for a global workforce. The Single Source of Truth model has the added benefit of decreasing the carbon footprint created by excessive digital waste, further supporting the sustainability goals of the United Nations.
“The need for robust cybersecurity and data protection has never been greater,” said Sameer Chauhan, Director of UNICC. “By working together with ShelterZoom, we have developed a cutting-edge tool tailored to the needs of the UN family. Our unwavering commitment to providing best-in-class solutions ensures we continue to support the digital transformation and modernization of the UN system and other international organizations.”
The post UNICC and ShelterZoom Developed a Secure Document Tracking and E-Signature Solution for the UN System appeared first on News, Events, Advertising Options.
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