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Mega-deals drive record values in Fintech, says Hampleton Partners’ latest M&A report

The latest Fintech M&A Market Report from technology mergers and acquisitions advisors, Hampleton Partners, reveals just how deeply digital disruptors are impacting on deal valuations.

While transaction volumes declined, deal values reached their highest total sum on record during the second half of 2017, with a total of USD29.35 billion in disclosed value. Almost half of this total was achieved by the massive Worldpay acquisition of Vantiv for USD10.4 billion. Most of the other growth in deal values was delivered by a total of 21 transactions disclosed above USD100 million, more than a doubling from previous half year periods.
 
Jonathan Simnett, director, Hampleton Partners, says: “The big financial players have woken-up to the profound changes taking place in their markets. This means that they are offering record-level deals to a new generation of fintech firms developing the products and services they need to accelerate their response to the disruptive forces of new entrants, increasingly complex regulations; higher customer service expectations and the arrival of completely new virtual currencies and financial platforms.
 
“2017 was also a booming year for private equity investment into the fintech sector. Lured by strong revenue growth and double-digit profits, two of the top three deals during the second half of 2017 involved a private equity buyer with just five buyout funds spending USD10.9 billion on assets during 2H 2017.”
 
As for the coming year, Hampleton expects more digital disruption in fintech, led by investment in chatbots, machine learning and AI, with blockchain technology gaining momentum with aggressive bidding from financial information buyers and growing interest from large banks and private equity bidders will continue to drive up valuations and the potential for mega-deals.
 

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