Bi-Weekly Finanial Technology Sector Report - GCA Savvian [PDF]

Financial Technology Sector Summary March 15, 2017

1

FINANCIAL TECHNOLOGY DEAL DASHBOARD Industry Stock Market Performance (1)

$19.3 Bn | 1,271 Deals (3)

2016 Financing Volume

Select Recent Financing Transactions (2)

Company

$360.5 Bn | 3,227 Deals (3)

Last Twelve Months

2016 M&A Volume

160

Amount ($MM)

150

$500.0

140

Select Recent M&A Transactions (2)

Target

Acquirer

EV ($MM) $1,904.0

130

$200.0 $102.0 $48.0

NA

120

NA

110 100

$175.0

90

$33.0 $31.0

80 3/14/16

$30.0

NA 4/27/16

6/10/16

7/26/16

9/8/16

10/24/16

1/20/17

3/7/17

Exchanges

Financial Data, Content, & Analytics

Information Processors / Credit Bureaus Banking & Lending Technology

Online Broker Dealers

$25.0

12/7/16

Payments

Investment Services, Software, & Technology

$102.0 NA $59.0

Healthcare / Insurance Technology S&P 500

Quarterly Financing Volume

$10

(3)

500

398

$8

$8.9 299

298

$6 $4

Quarterly M&A Volume

400 276

$5.3

300 200

$2

$2.6

$2.6

Q3 2016

Q4 2016

$0

100 0

Q1 2016

Q2 2016 Financing Volume ($Bn)

$120 $100 $80 $60

876 753

(3)

1000

815

783

800

$99.4

$97.8

600

$83.1

$80.1

400

$40

200

$20 $0

0 Q1 2016

Financing Deal Count

Notes: Source: Capital IQ, CB Insights and GCA FinTech Database. Market Data as of 3/10/17. 1) Refer to footnotes on page 5 for index composition. 2) Represents transactions announced between 2/14/17 and 3/13/17. 3) Deal counts include transactions with undisclosed funding amounts and enterprise values for financing and M&A transactions respectively.

Q2 2016 M&A Volume ($Bn)

Q3 2016

Q4 2016

M&A Deal Count

2

TABLE OF CONTENTS

I. Market Summary II. Payments / Banking III. Securities / Capital Markets / Data & Analytics IV. Insurance / Benefits V. GCA Overview

3

SECTION I: Market Summary

4

MARKET SUMMARY Industry Stock Market Performance

Last 12 Months

150

Last 3 Years

160

150

140

140

130

130

120 120

110 110

100 100

90

80 3/14/16

90

4/27/16

6/10/16

7/26/16

9/8/16

10/24/16

12/7/16

1/20/17

3/7/17

Indexed Price Performance Sector

3 Months

Investment Services, Software, & Technology Payments Banking & Lending Technology Information Processors / Credit Bureaus Financial, Data, Content, & Analytics Online Broker Dealers Exchanges Healthcare / Insurance Technology

9.7% 9.3% 8.5% 7.8% 5.6% 3.2% 3.0% 1.3%

80 3/13/14

7/1/14

10/17/14

Payments

1 Year

3 Years

23.3% 24.2% 22.1% 19.0% 22.8% 41.4% 15.3% 6.7%

42.2% 31.5% 50.8% 39.2% 6.9% 44.3% 38.9% 11.1%

2/4/15

5/25/15

(1)

12/29/15

4/15/16

8/3/16

Exchanges



9/10/15

(3)

(5)

(7)


11/21/16

3/9/17

(2)

Information Processors / Credit Bureaus

Banking & Lending Technology

(6)

Healthcare / Insurance Technology

Notes: (1) Payments: ADS, AIM: PPT, AIM:SCH, AXP, BOVESPA: CIEL3, CATM, DFS, EEFT, ENXTPA: EDEN, FDC, FLT, GDOT, GPN, HPY, MA, OUTR, PYPL, PAR, SQ, TSE:3769, TSXV:TNC, TSS, UEPS, V, VNTV, WEX, LSE: WPG, WU, XTRA: WDI. (2) Exchanges: ASX: ASX, ATSE: EXAE, BMV: BOLSA A, BOVESPA: BVMF3, CATS: BME, CBOE, CME, ICE, JSE: JSE, KLSE: BURSA, LSE: LSE, NDAQ, SEHK: 388, SGX: S68, TSX: X, WSE: GPW, XTRA: DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA: FIM, FDS, HHS, HIS, MCO, MHP, MORN, MSCI, MRKT, RATE, TRI. (4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN. (5) Online Broker Dealers: AMTD, ETFC, GCAP, GLBR, IBKR, SCHW. (6) Banking & Lending Technology: ACIW, BKFS, ELLI, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN, YDLE. 5 (7) Investment Services, Software, & Technology: ADVS, BR, DST, ENV, FNGN, SEIC, SSNC. (8) Healthcare / Insurance Technology: BSE:532254, ATHN, EBIX, CRD.B, GWRE, IMS, SLH, TSXV:SY, VRSK.

(8)

(4)

MARKET SUMMARY EBITDA Multiples and Margins

2016E EBITDA Multiples

2016E EBITDA Margins


Exchanges

19.3x


56.3%


15.7x


15.3x


Exchanges

14.9x

Banking and Lending Technology

46.0%

33.7%

31.8%


14.2x


28.8%


14.1x


27.9%

Payments


0.0x

Payments

13.5x


12.2x

5.0x

10.0x

15.0x

25.6%

20.0x

Notes: Numbers represent medians of sub-sectors. Details available in later pages.

25.0x

20.0%

0%

10%

20%

30%

40%

50%

60% 6

MARKET SUMMARY Price / Earnings Multiples and PEG Ratios

2016E Price / Earnings Multiples

2016E PE / Growth (“PEG” Ratio) | Long-Term EPS Growth


31.0x


2.3 10.8%


25.8x


2.2


25.4x


2.2


25.3x

Exchanges

2.0

10.9%

2.0

14.0%


24.4x



24.4x


Exchanges

Payments

0.0x

21.9x

21.1x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x

Notes: Numbers represent medians of sub-sectors. Details available in later pages.

13.7%

1.8


15.0%

1.6

Payments

15.6%

1.5 0.0

0.5

1.0

1.5

15.5%

15.0%

2.0

2.5

7

MARKET SUMMARY LTM Price Performance and 2016 P/E – Payments / Banking ($MM)

($MM)

Networks Visa Inc. Mastercard Incorporated American Express Company PayPal Holdings, Inc. Discover Financial Services Sector Average

Merchant Processing Cielo S.A. First Data Corporation Vantiv, Inc. Global Payments Inc. Total System Services, Inc. Worldpay Group plc Wirecard AG Square, Inc. GMO Payment Gateway, Inc. EVERTEC, Inc. SafeCharge International Group Limited CardConnect Corp. Planet Payment, Inc. JetPay Corporation Sector Average

Money Transfer The Western Union Company Euronet Worldwide, Inc. Sector Average

Closed Loop FleetCor Technologies, Inc. Alliance Data Systems Corporation Edenred SA WEX Inc. Sector Average

Market Cap.

LTM Price Performance

P/E 2016

$208,238 $119,875 $71,543 $51,914 $27,573

28% 28% 35% 12% 48%

30.6x 29.6x 13.3x 28.8x 12.6x

$95,829

30%

23.0x

Market Cap.


P/E 2016

$19,283 $14,720 $12,571 $12,048 $10,075 $7,010 $6,294 $6,209 $2,098 $1,194 $422 $407 $199 $45

6% 21% 25% 32% 24% (12%) 43% 50% (8%) 20% (23%) NA 8% 23%

15.3x 12.5x 23.8x 24.6x 19.5x 23.9x 25.8x NM 81.6x 9.8x 14.9x NM 22.9x NM

$6,613

16%

25.0x

Market Cap.


P/E 2016

$9,459 $4,328

5% 20%

11.9x 20.7x

$6,894

12%

16.3x

Market Cap.


P/E 2016

$14,721 $13,881 $5,191 $4,535

19% 19% 22% 39%

23.3x 14.7x 23.7x 23.2x

$9,582

25%

21.2x

Prepaid Blackhawk Network Holdings, Inc. Green Dot Corporation Net 1 UEPS Technologies, Inc. Sector Average

ATM / Kiosks Cardtronics plc Everi Holdings Inc. TIO Networks Corp. Sector Average

POS Hardware / Technology NCR Corporation Ingenico Group - GCS VeriFone Systems, Inc. PAR Technology Corporation Sector Average

Banking and Lending Technology Intuit Inc. Fidelity National Information Services, Inc Fiserv, Inc. Jack Henry & Associates, Inc. Temenos Group AG Ellie Mae, Inc. Black Knight Financial Services, Inc. ACI Worldwide, Inc. LendingClub Corporation DH Corporation Q2 Holdings, Inc. Bottomline Technologies (de), Inc. On Deck Capital, Inc. Performant Financial Corporation Sector Average

Information Processors / Credit Bureaus Experian plc Equifax Inc. Fair Isaac Corporation Acxiom Corporation Sector Average

Notes: Source: CapitalIQ and Wall Street Research. Market data as of March 10, 2017.

0

Market Cap.


P/E 2016

$2,013 $1,522 $692

8% 37% 42%

23.2x 21.1x 7.2x

$1,409

29%

17.2x

Market Cap.


P/E 2016

$2,041 $213 $212

28% 5% 82%

13.8x 4.7x 29.1x

$822

38%

15.9x

Market Cap.


P/E 2016

$6,039 $5,774 $2,130 $103

89% (4%) (28%) 4%

16.2x 21.4x 13.7x NA

$3,512

15%

17.1x

Market Cap.


P/E 2016

$31,958 $27,036 $25,164 $7,331 $5,166 $3,346 $2,691 $2,570 $2,125 $1,827 $1,424 $930 $349 $79

27% 34% 22% 16% 57% 21% 34% 13% (41%) (37%) 65% (14%) (32%) (10%)

32.7x 21.5x 26.4x 31.0x 37.7x 46.0x 33.6x 53.8x NM 11.3x NM 23.8x NM 19.8x

$8,000

11%

30.7x

Market Cap.


P/E 2016

$18,377 $15,971 $4,004 $2,189

17% 25% 30% 36%

21.9x 24.3x 26.5x 42.7x

$10,135

27%

28.9x

8

MARKET SUMMARY LTM Price Performance and 2016 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM)

($MM)

Exchanges - Americas

0

CME Group Inc. Intercontinental Exchange, Inc. Nasdaq, Inc. BM&FBOVESPA S.A. CBOE Holdings, Inc. BATS Global Markets, Inc. TMX Group Limited Bolsa Mexicana de Valores, S.A.B. de C.V. Sector Average

Market Cap.


P/E 2016

$40,376 $34,321 $11,526 $10,792 $6,313 $3,349 $2,946 $849

33% 24% 16% 135% 25% NA 107% 22%

26.5x 21.0x 19.0x 18.7x 32.5x 24.5x 16.2x 18.4x

$13,809

52%

22.1x

Investment Services, Software, & Technology Broadridge Financial Solutions, Inc. SEI Investments Co. SS&C Technologies Holdings, Inc. DST Systems, Inc. Financial Engines, Inc. Envestnet, Inc. Sector Average

Financial Data, Content, & Analytics Exchanges - Asia

0 Hong Kong Exchanges and Clearing Limite ASX Limited Singapore Exchange Limited Bursa Malaysia Berhad

Sector Average

Exchanges - Europe Deutsche Börse Aktiengesellschaft London Stock Exchange Group plc Bolsas y Mercados Españoles JSE Limited GPW Hellenic Exchanges - Athens Stock Exch. Sector Average

Trading Platforms MarketAxess Holdings Inc. BGC Partners, Inc. KCG Holdings, Inc. Virtu Financial, Inc. INTL FCStone Inc. Investment Technology Group, Inc. Sector Average

0

Market Cap.


P/E 2016

$30,858 $7,568 $5,738 $1,056

20% 40% 10% (3%)

39.6x 24.4x 24.5x 24.4x

$11,305

17%

28.2x

Market Cap.


P/E 2016

$16,090 $13,434 $2,566 $1,005 $495 $295

9% 24% 7% 41% 37% 12%

18.9x 26.3x 15.5x 14.3x 16.2x 64.6x

$5,648

22%

26.0x

Market Cap.


P/E 2016

$7,021 $3,161 $989 $734 $697 $657

76% 34% 43% (8%) 50% 17%

73.7x 15.3x 19.7x 13.5x 12.8x 22.4x

$2,210

35%

26.2x

Notes: Source: CapitalIQ and Wall Street Research. Market data as of March 10, 2017.

S&P Global, Inc. Thomson Reuters Corporation Moody's Corporation IHS Markit Ltd. Verisk Analytics, Inc. MSCI Inc. FactSet Research Systems Inc. The Dun & Bradstreet Corporation Morningstar, Inc. Bankrate, Inc. Sector Average

Online Broker Dealers The Charles Schwab Corporation TD Ameritrade Holding Corporation E*TRADE Financial Corporation Interactive Brokers Group, Inc. GAIN Capital Holdings, Inc. FXCM Inc. Sector Average

Market Cap.


P/E 2016

$7,962 $7,891 $6,655 $3,741 $2,445 $1,647

26% 47% 19% 16% 58% 86%

24.3x 24.8x 20.3x 20.6x 34.7x 39.5x

$5,057

42%

27.4x

Market Cap.


P/E 2016

$32,633 $32,431 $20,650 $15,946 $14,153 $8,328 $7,040 $3,706 $3,344 $1,005

54% 28% 38% NA 27% 40% 30% 13% 3% (2%)

23.9x 21.4x 22.9x 22.5x 27.4x 30.9x 26.2x 13.7x 27.1x 17.8x

$13,924

26%

23.4x

Market Cap.


P/E 2016

$52,947 $22,348 $9,740 $2,598 $398 $16

80% 65% 76% 26% 21% (71%)

30.6x 27.7x 19.4x 29.0x 14.7x NA

$14,675

33%

24.3x

9

SECTION II: Payments / Banking

10

PAYMENTS / BANKING Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 3/10/17 Networks Visa Inc. Mastercard Incorporated American Express Company PayPal Holdings, Inc. Discover Financial Services

$89.73 111.21 79.38 42.99 71.52

LTM Price Range Low High $70.66 86.65 57.15 34.00 47.82

$89.86 112.92 82.00 44.52 74.33

Equity Value $208,238 119,875 71,543 51,914 27,573

Net Debt $6,930 (3,155) 29,063 (9,816) 13,616

Enterprise Value $222,226 116,748 102,206 42,098 41,764 Mean Median

Merchant Processing Cielo S.A. First Data Corporation Vantiv, Inc. Global Payments Inc. Total System Services, Inc. (1) Worldpay Group plc Wirecard AG Square, Inc. GMO Payment Gateway, Inc. EVERTEC, Inc. SafeCharge International Group Limited CardConnect Corp. Planet Payment, Inc. JetPay Corporation (2)

$8.53 16.07 64.08 79.14 54.95 3.51 50.94 16.91 56.98 16.25 2.86 14.15 3.71 2.55

$7.72 9.90 50.52 58.11 44.15 3.01 31.35 8.42 33.09 12.98 2.22 8.70 2.75 1.89

$11.94 16.67 66.24 81.56 56.54 3.90 51.40 18.17 70.18 18.60 3.31 14.65 4.97 3.25

$19,283 14,720 12,571 12,048 10,075 7,010 6,294 6,209 2,098 1,194 422 407 199 45

$2,510 18,104 3,116 3,970 2,939 1,193 (888) (512) (259) 598 (128) 123 (3) 19

$22,918 35,808 15,978 16,166 13,038 8,203 5,407 5,697 1,847 1,795 294 567 196 148 Mean Median

Money Transfer The Western Union Company Euronet Worldwide, Inc.

$19.67 82.66

$18.07 65.33

$22.70 84.81

$9,459 4,328

$1,902 (130)

$11,361 4,199 Mean Median

Closed Loop FleetCor Technologies, Inc. Alliance Data Systems Corporation Edenred SA WEX Inc.

$160.20 248.20 22.42 106.10

$133.64 185.02 16.74 76.48

$176.42 251.19 23.94 122.91

$14,721 13,881 5,191 4,535

$3,383 19,090 668 2,008

$18,104 32,970 5,933 6,552 Mean Median

Prepaid Blackhawk Network Holdings, Inc. Green Dot Corporation Net 1 UEPS Technologies, Inc.

$36.10 30.04 13.17

$28.88 20.79 8.37

$39.30 30.24 13.81

$2,013 1,522 692

($428) 28 (176)

$1,589 1,549 520 Mean Median

EV / Revenue CY 16E CY 17E

EV / EBITDA CY 16E CY 17E

Price / EPS CY 16E CY 17E

EPS Long Term Growth

PEG

Revenue Growth 16E/15A Y/Y MRQ

13.9x 10.8x 3.4x 3.9x 5.8x

12.3x 9.9x 3.1x 3.3x 4.3x

20.2x 18.8x NM 15.3x NM

17.5x 17.0x NM 13.3x NM

30.6x 29.6x 13.3x 28.8x 12.6x

26.3x 26.1x 14.0x 24.9x 11.7x

17.1% 15.6% 9.1% 17.4% 8.6%

1.8 1.9 1.5 1.7 1.5

13.6% 11.5% (2.7%) 17.2% (17.1%)

25.1% 9.5% (7.0%) NM 3.4%

7.6x 5.8x

6.6x 4.3x

18.1x 18.8x

15.9x 17.0x

23.0x 28.8x

20.6x 24.9x

13.6% 15.6%

1.7 1.7

4.5% 11.5%

7.8% 6.5%

6.1x 3.1x 4.5x 5.6x 3.1x 5.9x 5.0x 3.3x 15.7x 4.7x 2.8x 1.0x 3.5x 2.6x

5.6x 3.0x 7.6x 4.7x 2.7x 5.4x 3.9x 2.8x 10.4x 4.5x 2.5x 0.8x 3.2x 2.2x

13.3x 12.4x 17.7x 18.0x 12.6x 14.4x 16.7x NM 46.6x 9.7x 8.5x 15.1x 13.4x 72.0x

12.2x 11.9x 16.0x 14.6x 11.4x 13.1x 12.9x 49.7x 33.1x 9.9x 7.4x 13.1x 11.3x 48.3x

15.3x 12.5x 23.8x 24.6x 19.5x 23.9x 25.8x NM 81.6x 9.8x 14.9x NM 22.9x NM

13.8x 10.6x 20.0x 20.5x 17.6x 21.4x 22.1x 89.7 69.9x 10.3x 12.6x NM 17.0x NM

12.5% 13.2% 14.5% 12.3% 11.3% 21.3% 28.1% 20.0% 24.4% 8.3% NM NM 22.5% NM

1.2 0.9 1.6 2.0 1.7 1.1 0.9 NM 3.4 1.2 NM NM 1.0 NM

34.6% 1.7% 112.8% 19.8% 6.8% 15.3% 24.5% 34.3% 44.2% 3.0% 6.5% 29.5% 6.7% 28.7%

24.3% (1.0%) 12.1% 30.4% 9.3% (5.2%) 33.8% 20.7% 63.8% 6.5% 5.5% 23.0% (9.4%) 47.6%

4.8x 4.0x

4.2x 3.6x

20.8x 14.4x

18.9x 13.0x

25.0x 22.9x

27.1x 18.8x

17.1% 14.5%

1.5 1.2

26.3% 22.1%

18.7% 16.4%

2.1x 2.1x

2.1x 2.0x

8.5x 12.1x

8.7x 10.5x

11.9x 20.7x

11.7x 18.1x

7.3% 14.7%

1.6 1.4

(1.1%) 10.5%

(0.6%) 10.5%

2.1x 2.1x

2.0x 2.0x

10.3x 10.3x

9.6x 9.6x

16.3x 16.3x

14.9x 14.9x

11.0% 11.0%

1.5 1.5

4.7% 4.7%

4.9% 4.9%

9.9x 4.6x 4.9x 6.5x

8.2x 4.3x 4.3x 5.5x

19.2x 15.8x 13.5x 17.8x

15.4x 15.6x 11.4x 13.5x

23.3x 14.7x 23.7x 23.2x

19.4x 13.4x 20.7x 19.9x

15.7% 16.5% 11.5% 15.0%

1.5 0.9 2.1 1.5

7.6% 10.8% 10.5% 17.9%

19.6% 4.5% 13.2% 36.8%

6.5x 5.7x

5.6x 4.9x

16.6x 16.8x

14.0x 14.5x

21.2x 23.3x

18.4x 19.7x

14.7% 15.4%

1.5 1.5

11.7% 10.7%

18.5% 16.4%

0.8x 2.2x 0.9x

0.7x 1.9x 0.8x

7.7x 9.9x 3.3x

6.7x 8.2x 3.1x

23.2x 21.1x 7.2x

22.3x 15.7x 7.4

15.6% 15.5% NM

1.5 1.4 NM

8.5% 2.2% (4.4%)

3.2% 7.8% 0.8%

1.3x 0.9x

1.1x 0.8x

7.0x 7.7x

6.0x 6.7x

17.2x 21.1x

15.2x 15.7x

15.6% 15.6%

1.4 1.4

2.1% 2.2%

3.9% 3.2%

Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM. 1) Revenue growth rates are estimates excluding TransFirst acquisition. 2) Convertible preferred equity assumed at 2x liquidation preference.

11

PAYMENTS / BANKING Public Company Valuations: Financial Metrics (Cont.) $MM, Except Per Share Data Stock Price 3/10/17 ATM / Kiosks Cardtronics plc Everi Holdings Inc. TIO Networks Corp.

$44.80 3.22 2.43

LTM Price Range Low High $34.18 1.13 1.22

$56.00 3.40 2.47

Equity Value $2,041 213 212

Net Debt

Enterprise Value

$429 1,024 (42)

$2,470 1,236 170 Mean Median

POS Hardware / Technology NCR Corporation Ingenico Group - GCS VeriFone Systems, Inc. PAR Technology Corporation

$48.47 94.07 19.09 6.52

$25.20 72.82 14.94 4.30

$49.90 118.32 29.73 7.18

$6,039 5,774 2,130 103

$2,553 121 757 (8)

$9,998 5,900 2,925 94 Mean Median

Banking and Lending Technology Intuit Inc. Fidelity National Information Services, Inc Fiserv, Inc. Jack Henry & Associates, Inc. Temenos Group AG Ellie Mae, Inc. Black Knight Financial Services, Inc. ACI Worldwide, Inc. LendingClub Corporation DH Corporation Q2 Holdings, Inc. Bottomline Technologies (de), Inc. On Deck Capital, Inc. Performant Financial Corporation

$124.94 82.23 117.28 94.44 77.74 99.09 38.45 21.91 5.31 17.10 35.20 24.59 4.87 1.58

$98.05 61.25 92.81 79.00 47.01 74.11 28.43 15.11 3.44 10.43 20.16 18.48 3.64 1.51

$128.45 83.86 118.30 95.37 78.44 109.99 42.19 22.96 9.36 29.84 37.58 31.52 8.94 4.07

$31,958 27,036 25,164 7,331 5,166 3,346 2,691 2,570 2,125 1,827 1,424 930 349 79

$513 9,795 4,262 (14) 178 (422) 1,444 686 (516) 1,405 (97) 61 675 21

$32,471 36,935 29,426 7,317 5,344 2,924 5,198 3,257 1,609 3,232 1,327 991 1,028 100 Mean Median

Information Processors / Credit Bureaus Experian plc Equifax Inc. Fair Isaac Corporation Acxiom Corporation Intersections Inc.

$19.75 133.26 128.90 28.04 3.68

$14.42 106.81 98.63 19.11 1.70

$19.88 136.97 133.14 30.40 4.23

$18,377 15,971 4,004 2,189 88

$3,161 2,543 533 99 3

$21,552 18,573 4,536 2,288 91 Mean Median





PEG


2.0x 1.4x 2.4x

1.7x 1.4x 2.1x

7.7x 6.3x 16.5x

7.4x 6.0x 12.2x

13.8x 4.7x 29.1x

15.4x 4.1x 28.2x

14.3% 20.0% NM

1.0 0.2 NM

5.4% 3.2% 68.3%

2.1% 6.4% 54.8%

1.9x 2.0x

1.7x 1.7x

10.2x 7.7x

8.5x 7.4x

15.9x 13.8x

15.9x 15.4x

17.1% 17.1%

0.6 0.6

25.6% 5.4%

21.1% 6.4%

1.5x 2.4x 1.5x NA

1.5x 2.2x 1.5x NA

9.2x 12.2x 9.1x NA

8.6x 10.8x 9.5x NA

16.2x 21.4x 13.7x NA

14.7x 18.2x 12.7x NA

10.0% 9.5% 15.0% NM

1.6 2.3 0.9 NA

2.7% 1.3% (4.2%) NA

7.3% 0.5% (11.6%) 6.0%

1.8x 1.5x

1.7x 1.5x

10.2x 9.2x

9.6x 9.5x

17.1x 16.2x

15.2x 14.7x

11.5% 10.0%

1.6 1.6

(0.1%) 1.3%

0.5% 3.3%

6.7x 4.0x 5.3x 5.3x 8.5x 8.1x 5.1x 3.3x 3.3x 2.6x 8.9x 2.9x 3.5x 0.7x

6.2x 3.9x 5.1x 5.0x 7.7x 6.7x 4.8x 3.2x 2.8x 2.5x 6.9x 2.7x 2.7x 0.7x

17.6x 12.6x 15.2x 14.3x 24.5x 25.9x 11.2x 14.2x NM 9.6x NM 12.9x NM 4.4x

16.1x 12.0x 14.4x 14.1x 21.7x 20.1x 10.1x 12.9x 31.5x 9.1x NM 13.1x NM 8.3x

32.7x 21.5x 26.4x 31.0x 37.7x 46.0x 33.6x 53.8x NM 11.3x NM 23.8x NM 19.8

27.5x 19.4x 23.1x 29.4x 32.3x 52.4x 28.7x 53.8x 95.3x 10.8x NM 25.2x NM NA

15.5% 12.0% 11.5% 11.0% 14.1% 25.0% 13.4% 12.5% 29.2% NM 32.0% 17.3% 43.3% 20.0%

2.1 1.8 2.3 2.8 2.7 1.8 2.5 4.3 NM NM NM 1.4 NM 1.0

8.6% 1.1% 4.8% 7.4% 16.2% 41.9% 10.2% (6.6%) 13.3% 14.9% 37.1% 2.4% 13.9% (14.0%)

10.1% 30.5% 4.6% 4.7% 13.3% 48.3% 10.0% 11.0% (3.7%) 3.7% 38.6% 0.8% (45.5%) (17.6%)

4.9x 4.5x

4.4x 4.4x

14.8x 14.2x

15.3x 13.6x

30.7x 31.0x

36.2x 28.7x

19.8% 15.5%

2.3 2.2

10.8% 9.4%

7.8% 7.3%

4.6x 5.9x 5.0x 2.6x NA

4.5x 5.5x 4.8x 2.5x NA

13.5x 16.6x 21.7x 14.8x NA

13.0x 14.9x 18.2x 12.8x NA

21.9x 24.3x 26.5x 42.7x NA

21.0x 22.1x 24.7x 36.9x NA

10.0% 11.3% 16.0% 18.0% NM

2.2 2.1 1.7 2.4 NA

(0.5%) 18.1% 6.1% 5.9% NA

2.6% 20.2% 9.8% 1.0% (12.0%)

4.5x 4.8x

4.3x 4.7x

16.7x 15.7x

14.7x 14.0x

28.9x 25.4x

26.2x 23.4x

13.8% 13.7%

2.1 2.2

7.4% 6.0%

4.3% 2.6%

Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM.

12

PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

3/8/17

Flagship Community Bank

BankMobile

Mobile Payments

NA

NA

3/7/17

Optal Limited

Invapay Payment Solutions Ltd.

B2B Payments

NA

NA

3/6/17

TA Associates Management, L.P.

Interswitch Limited

Digital Payments

NA

NA

2/28/17

Technology Crossover Ventures

Retail Merchant Services Ltd.

Payment Services

NA

NA

Fintellix Solutions Private Limited

Data / Analytics

NA

NA

2/23/17

Argus Information & Advisory Services, LLC Airbnb, Inc.

Tilt.com, Inc.

Crowd Funding

NA

NA

2/23/17

Ebates, Inc.

ShopStyle, Inc.

Ecommerce

NA

NA

2/23/17

MYOB Group Limited

Paycorp Holdings Pty Limited

Payment Solutions Provider

$37

NA

2/22/17

Bharti Airtel Services Limited

Seynse Technologies Pvt. Ltd.

Online Lending

NA

NA

2/16/17

CampusLogic, Inc.

Cegment, Inc.

Lending Tech

NA

NA

2/16/17

Volaris Group Inc.

Telepin, Inc.

Mobile Financial Services

NA

NA

2/16/17

Oxygen Finance Limited

Satago Ltd.

CF Management Software

NA

NA

2/14/17

Temenos Group AG

Rubik Financial Limited

Financial Software

$59

1.9x

2/14/17

PayPal Holdings, Inc.

TIO Networks Corp.

Payment Processing

$190

3.0x

2/8/17

Deluxe Corporation

RDM Corporation

Banking Software

$67

3.2x

2/8/17

Realtime Electronic Payments

Sigma Payment Solutions Inc.

Loan Servicing

NA

NA

2/6/17

Klarna AB

Ecommerce Payments

NA

NA

NA

NA

NA

NA

NA

NA

2/27/17

Billpay GmbH

2/1/17

i3 Verticals, LLC

2/1/17

Social Finance, Inc.

Randall Data Systems, LLC and CSC Links, LLC ZenBanx, Inc.

1/31/17

Cardtronics plc

Spark ATM Systems (Pty) Ltd.

Notes: Source: CapitalIQ, CB Insights and Wall Street Research Estimates. Multiples 100 considered NM.

Accounting Software / Healthcare Payments Mobile Banking ATMS

13

PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

1/31/17

Zoopla

Hometrack

Real Estate Tech

$150

NA

1/30/17

Ingenico Group - GCS

TechProcess Payment Services Limited

Electronic Payments

NA

NA

1/30/17

Green Dot Corporation

UniRush, LLC

Prepaid

$161

NA

1/27/17

Ebates, Inc.

Cartera Commerce Inc.

Loyalty / Rewards

NA

NA

1/26/17

Alipay (UK) Limited

MoneyGram International, Inc.

Money Transfer

$1,526

1.0x

1/26/17

Fusion RMS

Innovantum Technologies Ltd.

POS

NA

NA

1/25/17

McPayment Pte Ltd

Genesis Payment Solutions Pte Ltd.

Merchant Acquiring

NA

NA

1/24/17

Solera Holdings Inc.

Digidentity B.V.

Identity Protection

NA

NA

1/18/17

Clearent, LLC

International Payments / FX

NA

NA

1/18/17

AnaCap Financial Partners LLP

Payment Alliance International, Merchant Service Division Heidelberger Payment GmbH

Ecommerce Payments

NA

NA

1/18/17

Augeo Affinity Marketing Inc.

Edo Interactive Inc.

Loyalty / Rewards

NA

NA

1/17/17

Clarus Merchant Services

North American Merchant Services, Inc.

ISO

NA

NA

1/17/17


BC Technologies

ISO

NA

NA

1/16/17

Daimler Financial Services AG

PayCash Europe S.A.

Electronic Payments

NA

NA

ConCardis GmbH

Merchant Processing

NA

NA

Closed Loop

NA

NA

Financial Software

NA

NA

Merchant Acquiring

NA

NA

Crowdfunding

NA

NA

Online Lending / Lead Gen

NA

NA

1/11/17

Advent International Corporation; Bain Capital Private Equity, LP Intellitix Holdings Limited

Loc Pay Systems B.V.

1/10/17

Coupa Software Incorporated

Spend360 International Ltd

1/13/17

1/10/17


1/10/17

GoFundMe, Inc

ANARAQ Holdings, LLC, Payment Processing Assets CrowdRise, Inc.

1/6/17

Rock Holdings Inc.

LowerMyBills, Inc. and Classes USA, Inc.

Notes: Source: CapitalIQ, CB Insights and Wall Street Research Estimates. Multiples 100 considered NM

14


Target Subsector

Enterprise Value

EV / LTM Revenue

PS Financials Ltd

Accounting Software

NA

NA

EVO Payments International, LLC

Sterling Payment Technologies, Inc.

Merchant Processing

NA

NA

12/23/16

BBVA Bancomer, S.A.

Openpay SAPI de C.V.

Ecommerce Payments

NA

NA

12/23/16

Volkswagen Financial Services AG

Mobile Payments

$32

NA

12/19/16

Akamai Technologies, Inc.

PayByPhone Technologies And PayByPhone And Mobile Payment Cyberfend, Inc.

Fraud Protection

NA

NA

12/19/16

SENJO GROUP Pte. Ltd.

Kalixa Payments Group Limited

Merchant Acquiriing

$37

1.6x

12/6/16

American Express Company

InAuth, Inc.

Fraud Prevention

NA

NA

12/1/16

Flexpoint Ford, LLC

Purchasing Power, LLC

Online Consumer Lending

NA

NA

12/1/16

Visa Inc.

CardinalCommerce Corporation

eCommerce Payments

NA

NA

11/29/16

BluePay Canada ULC

VersaPay, Merchant Services Portfolio

Merchant Services Portfolio

$8

NA

11/23/16

Klarna AB

Cookies Labs GmbH

Money Transfer

NA

NA

11/20/16

Symantec Corporation

LifeLock, Inc.

Anti-Fraud

$2,362

3.6x

11/16/16

LendingTree, LLC

Iron Horse Holdings, LLC

Lead Gen

$130

NA

11/15/16

Versara Lending, LLC

Peerform, Inc.

Online Lending

NA

NA

11/14/16

Finical, Inc.

Safeguard Bankcard, LLC

Merchant Services

NA

NA

11/10/16

Intrum Justitia AB

1st Credit Limited

Collections

$163

2.6x

11/10/16

MetaBank

Specialty Consumer Services, LP

Online Lending

$54

NA

11/10/16

NPC Group, Inc.

Moneris Solutions, Inc.

Merchant Acquiring

$425

NA

11/7/16

GTCR, LLC

RevSpring, Inc.

Healthcare Payments

NA

NA

11/4/16

BC Partners; Medina Capital

Easy Solutions Inc.

Fraud Detection

NA

NA

Acquirer

Target

1/5/17

IRIS Software Group Limited

1/4/17


15


Acquirer

Target

11/4/16

Broadridge Financial Solutions, Inc.

M&O Systems, Inc.

11/1/16

Hansen Technologies Ltd

DST Billing Solutions Limited

10/26/16

Groupon, Inc.

LivingSocial, Inc.

Target Subsector

Enterprise Value

EV / LTM Revenue

Accounting Software

$25

NA

Billing Software

NA

NA

Ecommerce

NA

NA

Online Lending

NA

NA

Credit Cards

NA

NA

10/11/16

Lendingkart Technologies Private Limited CVC Capital Partners Limited; Cinven

NewDay Cards Ltd.

10/10/16

First American Mortgage Solutions, LLC

TD Service Financial Corporation

Mortgage Technology

NA

NA

10/10/16

Intuit Inc.

MTS Global (Europe) Limited

Accounting Software

NA

NA

10/10/16

TRGRP, Inc.

Priory Solutions Limited

Billing Software

NA

NA

10/10/16

Euronet Worldwide, Inc.

YourCash Europe Limited

ATMS

NA

NA

10/6/16

Capital One Financial Corporation

Paribus Co.

Ecommerce

NA

NA

10/6/16

Qiwi plc

Plati Potom OOO

Ecommerce

NA

NA

Risk / Analytics

$6

2.3x

10/18/16

Finectar Technologies Pvt. Ltd.

10/3/16

Gresham Computing plc (nka:Gresham Technologies plc) Cardtronics Holdings Limited

DirectCash Payments Inc.

ATMS

$453

2.1x

9/15/16

Payroc LLC

The iTransact Group, LLC

Merchant Processing

NA

NA

9/14/16

Amdocs Limited

Vindicia, Inc

Billing Software

NA

NA

iZettle AB

Intelligent Point Of Sale (Sales) Limited

Point of Sales

NA

NA

10/4/16

9/7/16

C24 Technologies Ltd.

Regulatory DataCorp, Inc.

Compliance/Risk

NA

NA

8/18/16

Vista Equity Partners; Vista Equity Fund III, L.P. Rakuten, Inc.

Bitnet Technologies

Digital Currency

NA

NA

8/4/16

FleetCor Technologies, Inc.

Travelcard Nederland B.V.

Closed Loop

NA

NA

8/4/16

Battery Ventures

Insert Mobile Technologies, Ltd.

Check Processing

NA

NA

9/6/16


16


Acquirer

8/3/16

SIA S.p.A.

7/31/16

InComm, Inc.

UniCredit Business Integrated Solutions, Card Processing Activities in ValuAccess Limited

7/28/16

BPCE SA

Fidor Bank AG

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

Payment Processing

$559

NA

Prepaid

NA

NA

Digital Banking

NA

NA

Mobile Payments

$1,225

5.1x

Gift Cards

NA

NA

7/5/16

MasterCard Incorporated (nka:Mastercard Incorporated) Next Group Holdings Inc.

6/30/16

Blackboard Inc.

Higher One Holdings, Inc.

Prepaid

$237

1.5x

6/29/16

Wirecard AG

Citigroup Inc., Prepaid Card Services

Prepaid

NA

NA

6/17/16

Intercontinental Exchange, Inc.

MERSCORP Holdings, Inc.

Mortgage Registration

NA

NA

6/17/16

Net 1 UEPS Technologies, Inc.

Masterpayment AG

Merchant Processing

NA

NA

6/16/16

GTCR, LLC

Optimal Blue LLC

Mortgage Software

NA

NA

6/16/16

Cast & Crew Payroll, LLC

Talent Acquisitions, LLC

Payroll Software

NA

NA

6/7/16

Francisco Partners

Capsilon

Mortgage Software

NA

NA

6/2/16

Chequers Capital

FIME SAS

MPOS

$9

0.2x

5/19/16


Nera Payment Solutions Pte Ltd.

POS

$64

NA

5/18/16

Fitbit, Inc.

Coin, Inc., Wearable Payments Assets

Wearables / IOT

NA

NA

5/9/16

Upserve, Inc.

POS

NA

NA

Issuer Processing

$1,192

NA

Prepaid

$34

NA

Credit Cards

NA

NA

Merchant Acquiring

NA

NA

7/21/16

5/2/16

Mercury UK Holdco Limited

4/28/16

Emerchants Limited (nka:EML Payments Limited) Wizink Bank Sa

4/27/16

SumUp Limited

4/28/16

VocaLink Holdings Limited Transaction Processing Products, Inc.

Breadcrumb Setefi S.p.A. and Intesa Sanpaolo Card D.O.O. Store Financial Services, LLC Barclaycard, Consumer Payments Business in Portugal and Spain Payleven Holding GmbH


17

PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date 4/26/16

Acquirer

Target


Lyudia Inc.

Target Subsector

Enterprise Value

EV / LTM Revenue

VAR

$9

30.3x

Check Processing

NA

NA

Loyalty / Rewards

$12

NA

Fraud Detection

$360

NA

POS

NA

NA

Gift Cards

$33

NA

4/19/16

Battery Ventures

4/19/16

Prodege, LLC

Goldleaf Enterprise Payments (GEPI), Inc. MyPoints.com, Inc.

4/18/16

Experian Information Solutions, Inc.

CSIdentity Corporation

4/18/16

SuperCom Ltd.

Powa Technologies Limited

4/7/16

RetailMeNot, Inc.

GiftCardZen, Inc.

4/6/16

Global Payments Inc.

Web Active Corporation Pty Ltd.

eCommerce Payments

$50

NA

4/4/16

Net 1 UEPS Technologies, Inc.

Masterpayment AG

eCommerce Payments

NA

NA

4/1/16

Flipkart Online Services Pvt. Ltd.

PhonePe Internet Private Limited

Mobile Payments

NA

NA

3/21/16

Asure Software, Inc.

Mangrove Software, Inc.

HR / Payroll Software

$18

NA

3/15/16

FEXCO Holdings Ltd

Currency Exchange Corporation Ltd.

Online Banking

NA

NA

3/15/16

Payoneer Inc.

Armor Payments, Inc.

B2B Payments

NA

NA

3/14/16

Square, Inc.

Framed Data

Data / Analytics

NA

NA


18

PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date

Target

Series

Amount

3/13/17

Canopy

NA

$20

3/13/17

Viva Republica

Series C

$48

3/9/17

Currencycloud

Series D

$25

3/8/17

Veem

Series B

$24

3/7/17

Qapital

Series A

$12

Investors Epic Ventures, Deep Fork Capital, NEA, Pelion Venture Partners Altos Ventures, Bessemer Venture Partners, Goodwater Capital, Partech Ventures, PayPal Holdings Anthemis, GV, Notion Capital, Rakuten FinTech Fund, Sapphire Ventures GV, NAB Ventures, SBI Investment Co. Anthemis, Northzone, Rocketship VC

Target Subsector Accounting / Tax Software Money Transfer Cross-Border Payments B2B Payments PFM

3/6/17

Atom Bank

NA

$102

3/3/17

UpStart

NA

$33

3/2/17

Sensibill

Series A

$12

BBVA, Toscafund Asset Management, Woodford Investment Management First Round Capital, Khosla Ventures, Rakuten, Third Point Ventures Information Capital, OTEAF

3/1/17

Clearbank

NA

$31

CFFI Ventures, PPF Group

2/24/17

Social Finance

Series F

$500

GPI Capital, Silver Lake, Softbank Group

Online Lending

2/23/17

Nymbus

NA

$16

Home Credit Group

Bank Software

2/23/17

Tala

Series B

$30

IVP, Ribbit Capital

Credit Scoring

2/22/17

Monzo

NA

$25

Orange Digital Ventures, Passion Capital, Thrive Capital

Digital Banking

2/22/17

Prospa

NA

$19

AirTree Ventures

Online Lending

2/22/17

Ecrebo

NA

$15

Joseph Schull, Octopus Ventures, Sir Keith Mills

2/22/17

Series B

$15

Nasper's FinTech Arm, Redpoint Ventures, World Bank's International Finance Corp SoftBank Ventures

NA

$200

Ant Financial

CrediFi Corp

Series B

$13

Better Mortgage Inc.

Series B

$15

Creditas

2/20/17

True Balance

2/20/17

Kakao Pay

2/13/17 2/9/17

Notes: Source: CapitalIQ , CB Insights and Pitchbook.

Series B

$19

31Ventures, Battery Ventures, Carmel Ventures, Liberty Israel Venture Fund, OurCrowd, Stax Goldman Sachs, Kleiner Perkins Caufield & Byers, Pine Brook Partners

Digital Banking Online Lending Expense Mgmt Software Banking Software

Offers / Marketing Online Lending Mobile Balance Management Mobile Payments Data / Analytics Mortgage Origination

19

PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date

Target

2/8/17

Exactuals LLC

2/2/17

Paytm E-Commerce

Series

Amount

Series A

$10

NA

$200

Investors City National Bank, TTV Capital Alibaba, SAIF Partners

1/31/17

Feedvisor Ltd.

Series B

$20

1/31/17

Knock

Series A

$33

1/30/17

Earnix

NA

$14

1/26/17

Raisin GmbH

Series C

$30

General Catalyst Partners, JAL Ventures, Oryzn Capital, Square Peg Capital, Titanium Investments Correlation Ventures, FJ Labs, Great Oaks Venture Capital, Greycroft, Redpoint, RRE Ventures Jerusalem Venture Partners, Israel Growth Partners, Vintage Investment Partners Index Ventures, Ribbit Capital, Thrive Capital

1/25/17

BitFury

NA

$30

Credit China FinTech Holdings

1/19/17

Iyzico

Series C

$13

212 Ltd, International Finance Corp., Vostok Emerging Finance

1/13/17

HouseCanary

Series A

$33

Alpha Edison, Europlay Capital Advisors, Raven Ventures

1/12/17

Funding Circle

Series F

$82

1/11/17

CompareEuropeGroup Ltd.

Series A

$20

1/11/17

iZettle AB

NA

$60

1/10/17

Advanon AG

Series A

$14

Accel Partners, DST Global, Index Ventures, Ribbit Capital, Union Square Ventures ACE & Company, Nova Founders Capital, Pacific Century Group, SBI Holdings Inc. American Express Co, Creandum, Index Ventures, Intel Capital, MasterCard Inc., Northzone Ventures b-to-v Partners, Swisscom Ltd., VI Partners

1/10/17

MobileCause Inc.

Series B

$15

Level Equity Management LLC

1/9/17

Activehours Inc.

NA

$22

1/9/17

FreeCharge

NA

$57

1/5/17

CloudCraze LLC

Series B

$20

Felices Ventures, March Capital Partners, Matrix Management Corp., Ribbit Capital LP SnapDeal Insight Venture Partners, Salesforce Ventures

Series E

$24

Credible Labs

NA

$10

American Express Ventures, BlueCross BlueShield Venture Partners, Relay Ventures, Verizon Ventures Undisclosed

Magento Commerce

NA

$250

Hillhouse Capital Management

1/5/17

Payfone

1/4/17 1/4/17


Target Subsector Vertical Payments eCommerce eCommerce Real Estate Tech Data / Analytics Cash Management Blockchain eCommerce Payments Real Estate Data / Analytics Online Lending Lead Gen POS Online Lending Crowdfunding Online Lending Mobile Payments B2B Commerce Fraud Protection Online Lending eCommerce

20


Target

1/3/17

Monese

1/3/17

Tandem Bank

Investors

Target Subsector

Series

Amount

Series A

$10

Exponential Ventures, Korea Investment Partners, STE Capital

Digital Banking

NA

$43

House of Fraser

Digital Banking

Series A

$20

Oak View Group, Shamrock Capital Advisors

12/20/16

Appetize Technologies Inc.

12/15/16

Kreditech

NA

$10

Rakuten Fintech Fund

Online Lending

12/14/16

BillFront

Series A

$35

4FINANCE, Finleap, NIBC Bank N.V.

Online Lending

12/8/16

Thanx Inc.

Series B

$17

Icon Ventures, Javelin Venture Partners, Sequoia Capital

12/7/16

Nubank

Series D

$80

12/5/16

MoneyLion Inc.

Series A

$11

11/28/16

Five Degrees Solutions

Series A

$13

Digital Sky Technologies, Founders Fund, QED Investors, Sequoia Capital, Tiger Global Management Citizen VC, Clocktower Technology Ventures, Edison Partners, FinTech Collective, Montage Ventures 5square, Karmijn Kapitaal, Velocity Capital Private Equity

11/25/16

Stripe Inc.

NA

$150

CapitalG, General Catalyst Partners, Sequoia Capital

11/24/16

Ximu Financial Information Services

Series A

$15

11/23/16

Wynd

Series B

$32

China Merchants Venture Capital Management Co., Ltd., Zhixin Capital Bpifrance, Orange Digital Ventures, Sodexo Ventures

11/23/16

Udaan.com

Series A

$10

Lightspeed Venture Partners India, Lightspeed U.S.

11/18/16

AdvisorEngine

Series A

$20

WisdomTree Investments, Inc.

11/15/16

eOriginal, Inc.

NA

$27

LLR Partners, Inc.

11/15/16

Mavenlink, Inc.

Series D

$39

Goldman Sachs Growth Partners

11/10/16

Teamleader NV

Series B

$10

Fortino Capital

11/7/16

Zafin Labs America Inc.

NA

$10

Beedie Capital Partners, Vistara Capital Partners

11/1/16

StayClassy Productions Inc.

Series C

$30

10/26/16

nanoPay Corporation

Series A

$10


Bullpen Capital, Galileo Partners, JMI Management Inc., Mithril Capital Management, Salesforce Ventures APAGM Services, Goldman Sachs Merchant Banking Division, Jarnac Capital Management, Rohatton

POS

Loyalty / Rewards Online Banking Online Lending Banking Software eCommerce Payments Rating Agency POS Trading Platform Broker Software Electronic Transaction Software Financial Software CRM / Invoicing Software Banking Software Crowdfunding Digital Currency

21


Target

Series

Amount

Series D

$20

Investors

10/25/16

Lendio Inc.

10/24/16

AEVI

NA

$11

Blumberg Capital, Comcast Ventures, Napier Park Global Capital, North Hill Ventures, Stereo Capital, Tribeca Venture Partners Adveq Management

10/21/16

China UnionPay Merchant Services

NA

$296

Everbright-IDG Industrial Fund

10/20/16

PaySimple Inc.

NA

$115

Providence Equity Partners

10/20/16

TravelBank

Series A

$10

Accel Partners, New Enterprise Associates

10/18/16

PayCommerce Inc.

Series B

$22

Tritium Partners

10/18/16

IbanFirst

NA

$11

Xavier Niel, Other Investors

10/18/16

SecureKey Technologies Inc.

Series D

$21

10/13/16

TouchBistro

Series B

$13

10/12/16

Nexus Systems

NA

$28

Bank of Montreal, CIBC, Desjardins, RBC, Scotiabank, TD Bank Financial Group BDC Capital, Huff Capital, Kensington Capital Partners, Relay Ventures, Round 13 Holdings Inc. Mainsail Partners

10/7/16

FlexiLoans

NA

$15

Angel Investors

Target Subsector Online Lending POS Merchant Acquiring ISO / Gateway Expense Software Cross-Border Payments Banking Software Identity / Authentication POS AP Software Online Lending

10/5/16

Money Forward

Series D

$11

10/4/16

Iwoca Ltd.

Series C

$27

9/30/16

Remitly, Inc.

NA

$38

Isetan Mitsukoshi Holdings, Mizuho Capital, Fenox Venture Capital, Toho Bank, Gunma Bank, Fukui Bank, Shiga Bank Prime Ventures, Acton Capital Partners, Commerz Ventures, Global Founders Capital, Redline Capital International Finance Corp, Silicon Valley Bank

9/30/16

Financeit

NA

$17

DNS Capital LLC, The Pritzker Organization

9/30/16

Payoneer

NA

$180

Technology Crossover Ventures, Susquehanna Growth Equity

Cross-Border Payments

9/29/16

Kyriba Corp.

NA

$23

Bpifrance Investissement SAS, Daher Capital, HSBC Bank PLC

Treasury Software

9/29/16

Apttus Corporation

9/26/16

Juzhen Financials

9/22/16

Wave Accounting Inc.


NA

$88

Series A

$23

Gulf Islamic Investments, Iconiq Capital LLC, K1 Investment Management LLC, Kuwait Investment Authority Fenbushi Capital, Wanxiang

NA

$11

BDC Capital, CRV, Social Capital, HarbourVest Partners

Accounting Software Online Lending Money Transfer Consumer Finance

Quote-To-Cash Blockchain Accounting Software

22


Target

Series

Amount

9/22/16

51Credit

Series C

$310

9/22/16

Avalara Inc.

Series D

$96

9/21/16

FirstP2P

Series C

$70

Investors Tiantu Capital, Xinhu Zhongbao, HgCapital, Shenzhen Qianhe Capital Management Sageview Capital, Technology Crossover Ventures, Warburg Pincus CCB International, San Shan Capital Partners

Target Subsector Online Lending Tax Software Online Lending

9/21/16

Nav, Inc

Series B

$25

9/15/16

Ripple Labs Inc.

Series B

$55

Experian, Kickstart Seed Fund, Kleiner Perkins Caufield & Byers, Peak Venture Partners, Tencent Holdings Ltd. Accenture Technology Ventures, CME Ventures

9/14/16

GreenSky Credit

NA

$50

Fifth Third BanCorp

Online Lending

9/14/16

Tipalti Solutions Ltd.

NA

$14

SG VC

AP Automation

9/13/16

Uno Home Loans

NA

$17

Westpac

9/9/16

Juvo

Series A

$14

9/8/16

SmartAsset

Series B

$12

9/1/16

Boku

Series E

$14

8/30/16

Paytm

NA

$60

8/30/16

Behalf

8/26/16

MobiKwik

8/22/16

InCred Finance

Freestyle Capital, Seed-Resolute, Wing Venture Capital Contour Ventures, Fitz Gate Ventures, IA Capital Group, Javelin Venture Partners, New York Life, Peterson Ventures, TTV Capital, Benchmark, DAG Ventures, GMO Payment Gateway, Index Ventures, Khosla Ventures, New Enterprise Associates MediaTek

Series C

$27

NA

$40

Mission OG, Sequoia Capital, Spark Capital, Viola Private Equity, Vintage Ventures Management Ltd. NET 1 UEPS Technologies, Inc.

Series A

$75

Alpha Capital Partners, IDFC Alternatives Ltd.

Series C

$48

Clara Lending

NA

$27

Bronze Investments, Data Collective, Google Ventures, QED Investors, Radicle Impact, Susa Ventures, SV Angel, Thomvest Redpoint Ventures, Venrock

8/15/16

Nymbus

NA

$12

Vensure Enterprises

8/8/16

Yunnex

Series B

$45

Ajisen Ramen, GSR Ventures

8/5/16

Mosaic

NA

$220

Core innovation Capital, Obvious Ventures, Warburg Pincus

8/22/16

LendUp

8/17/16


Business Lending Digital Currencies

Mortage Software Mobile Credit Analytics Financial Education Mobile Payments Mobile Commerce SMB Lending Mobile Payments Online Lending Online Lending Mortgage Technology Banking Software POS Online Lending

23


Target

Series

Amount

6/16/16

Fenqile

Series D

$235

CoBuilder Partners, Huasheng Capital

Online Lending

6/15/16

Payoff, Inc.

Series C

$47

Tencent Holdings

Online Lending

Investors

6/15/16

PromisePay

Series A

$14

6/13/16

FlexShopper

PIPE

$22

Carsales.com, Cultivation Capital, Rampersand, Reinventure Group Middlemarch Partners

6/12/16

Tapp Commerce

Series A

$9

AMMA Private Equity

6/12/16

Better Mortgage

Series A

$30

1/0 Capital, IA Ventures, KCK Group, Pine Brook, Goldman Sachs

6/10/16

Ascend Consumer Finance

6/6/16

zipMoney

6/2/16

Vyze

Series A

$11

PIPE

$15

Series B

$13

Cendana Capital, Financial Solutions Lab, Mucker Capital, OCA Ventures, Partech Ventures, Securian, Tekton Ventures Undisclosed Austin Ventures, StarVest Partners

6/2/16

Digit

Series B

$23

6/1/16

Zibby

Series B

$13

Baseline Ventures, Financial Solutions Lab, Freestyle Capital, General Catalyst, GV, Operative Capital, Ribbit Capital Blumberg Capital, Tribeca Venture Partners, Victory Park Capital

5/25/16

TransferWise

NA

$26

Baillie Gifford & Co.

5/25/16

Dashlane, Inc.

Series C

$23

Bessemer, FirstMark, Rho, TransUnion

5/19/16

Tally Technologies

Series A

$15

5/12/16

Capital Float

Series B

$25

NA

$23

Accelerate-IT Ventures, Cowboy Ventures, David Michaels, Shasta Ventures, SVB Aspada Investment, Creation Investments Capital Management, SAIF Partners, Sequoia Capital HPE Growth Capital

Series C

$23

ConCardis, Digital+ Partners, Metro (Germany)

5/11/16 5/11/16

Wincor Nixdorf's Cashless Payments Business Orderbird

5/10/16

BigCommerce

5/9/16

Bridge2 Solutions

5/5/16

Azimo


Series E

$30

NA

$35

NA

$15

American Express, General Catalyst Partners, GGV Capital, Revolution Growth, SoftBank Capital, Split Rock Partners Updata Partners Accion, e.Ventures, Frog Capital, Greycroft Partners, MCI Capital, Rakuten

Target Subsector

eCommerce Payments Online Lending Mobile Payments Mortgage Software Online Lending Online Lending Online Lending Personal Financial Management Online Lending Money Transfer Digital Wallet Credit Cards Online Lending Merchant Processing POS eCommerce Loyalty / Rewards Money Transfer

24


Target

Series

Amount

5/4/16

View the Space

Series C

$55

5/3/16

Bench

Series B

$16

Investors Insight Venture Partners, OpenView Venture Partners, Trinity Ventures Altos Ventures, Bain Capital Ventures, Contour Venture Partners

Series C

$24

Varo Money

NA

$27

Blumberg Capital, Camp One Ventures, ClalTech, Fang Fund Partners, iAngels, Kreos Capital, Lool Ventures, Rhodium Warburg Pincus

Nubank

NA

$53

Goldman Sachs

5/3/16

Zooz

5/2/16 4/27/16 4/26/16

Lendix, SA

Series B

$14

4/21/16

Kueski

Series A

$10

4/21/16

Forter

Series C

$32

4/17/16

Transactis, Inc.

Series E

$30

4/17/16

SocietyOne Australia Pty. Ltd.

Series C

$25

CNP, Decaux Freres Investissements, Matmut, Partech, Sycamore Asset Management, Weber Investissements Angel Ventures, Auria Capital, Core Ventures, CrunchFund, Richmond Global, Rise Capital, VARIV, Victory Park Capital NEA, Scale Venture Partners, Sequoia Capital One, Fifth Third Bank, PNC, Safegaurd Scientifics, TD Bank, Wells Fargo Westpac Banking Corp.

Target Subsector Real Estate Tech Financial Software Payment Optimization Online Banking Credit Cards Online Lending Online Lending Fraud Detection Bill Pay Online Lending

4/12/16

Remitly, Inc.

Series C

$39

4/12/16

Affirm, Inc.

Series D

$100

4/11/16

Viva Republica

Series A

$23

Bezos Expeditions, DN Capital, Draper Fisher Jurveston, Stripes Group, Trilogy Equity, Vulcan Capital Andreessen Horowitz, Founders Fund, Jeffries, Khosla, Lightspeed Venture Partners, Spark Captial Altos Ventures, Goodwater Capital, KTB Network

4/6/16

Finanzcheck.de

Series C

$37

Acton Capital Partners, HarbourVest, Highland Capital

4/1/16

MobiKwik

Series C

$50

GMO Venture Partners, MediaTek, Sequoia Capital, Tree Line Asia

Mobile Wallet

3/31/16

Blispay

NA

$13

Accomplice, AngelList, FirstMark Capital, Founder Collective, NEA

Online Lending

3/24/16

Kreditech

Series C

$11

International Finance Corporation

Credit Scoring

3/23/16

Gusto (ZenPayroll)

Series B

$17

GV, General Catalyst, Obvious Ventures

3/23/16

GoCardless Ltd.

Series C

$13

Accel, Balderton Capital, Notion Capital, Passion Capital

3/17/16

Splitit

30% Stake

$15

Aurum


Money Transfer Online Lending Money Transfer Marketplace Lending

HR / Payroll Software Direct Debit Online Lending

25

SECTION III: Securities / Capital Markets / Data & Analytics

26

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 3/10/17 Exchanges - Americas CME Group Inc. Intercontinental Exchange, Inc. Nasdaq, Inc. BM&FBOVESPA S.A. CBOE Holdings, Inc. TMX Group Limited Bolsa Mexicana de Valores, S.A.B. de C.V.

$123.73 60.26 70.96 5.91 79.63 50.90 1.49

LTM Price Range Low High

Equity Value

$89.00 45.88 61.19 4.51 61.22 31.76 1.34

$42,025 35,875 11,832 10,558 6,473 2,808 884

$127.60 60.86 72.52 6.56 81.37 56.63 1.81

Net Debt $279 5,934 3,127 410 (97) 492 (89)

Enterprise Value $42,305 41,882 14,959 10,970 6,388 3,301 801 Mean Median

Exchanges - Asia Hong Kong Exchanges and Clearing Limited ASX Limited Singapore Exchange Limited Bursa Malaysia Berhad

$24.48 38.61 5.29 2.03

$21.83 30.60 4.92 1.84

$27.46 39.52 5.69 2.12

$29,894 7,469 5,666 1,089

($1,826) (734) (459) (104)

$28,083 6,735 5,208 989 Mean Median

Exchanges - Europe Deutsche Börse Aktiengesellschaft London Stock Exchange Group plc Bolsas y Mercados Españoles JSE Limited GPW Hellenic Exchanges - Athens Stock Exch.

$85.01 37.18 31.75 11.00 11.30 5.02

$70.50 27.44 22.08 10.45 7.64 4.04

$89.19 41.20 33.19 14.21 12.03 5.93

$15,880 13,013 2,638 941 474 305

(1)

$1,236 (1,265) (299) (153) (48) (119)

$17,258 12,375 2,339 788 426 186 Mean Median





PEG

Revenue Growth Y/Y MRQ 16E/15A

11.8x 9.3x 4.0x 15.4x 9.7x 6.0x 5.9x

11.2x 9.0x 6.1x 13.7x 6.0x 5.8x 5.2x

16.9x 14.9x 13.1x 23.1x 18.1x 11.8x 11.0x

15.8x 14.0x 11.8x 20.6x 10.2x 10.9x 9.9x

27.6x 21.9x 19.3x 17.2x 33.3x 15.3x 19.1x

25.5x 20.0x 16.8x 16.5x 25.7x 14.4x 17.1x

11.1% 13.6% 9.5% 27.6% 36.6% NM 9.5%

2.5 1.6 2.0 0.6 0.9 NM 2.0

8.1% (3.9%) 77.3% 27.4% 3.5% 0.2% (9.4%)

12.2% 30.1% 12.5% 2.0% 12.3% 13.4% (4.1%)

8.9x 9.3x

8.1x 6.1x

15.6x 14.9x

13.3x 11.8x

22.0x 19.3x

19.4x 17.1x

18.0% 12.4%

1.6 1.8

14.7% 3.5%

11.2% 12.3%

19.3x 12.3x 9.5x 8.9x

17.3x 11.2x 8.9x 8.3x

27.8x 16.1x 16.9x 15.3x

24.4x 14.5x 14.9x 14.5x

38.3x 24.1x 24.2x 25.2x

33.8x 22.4x 21.6x 23.7x

2.3% 4.7% NM NM

16.7 5.1 NM NM

(12.4%) (16.3%) (6.0%) (6.5%)

(4.4%) 1.5% 0.6% (12.8%)

12.5x 10.9x

11.4x 10.1x

19.0x 16.5x

17.1x 14.7x

27.9x 24.7x

25.4x 23.0x

3.5% 3.5%

10.9 10.9

(10.3%) (9.4%)

(3.8%) (1.9%)

6.9x 6.4x 6.9x 4.4x 5.7x 6.2x

6.4x 5.9x 6.9x 4.0x 5.6x 4.9x

12.2x 13.2x 10.4x 9.0x 9.9x 19.6x

11.2x 11.4x 10.4x 8.4x 9.7x 10.7x

18.7x 24.6x 16.0x 13.4x 15.8x 65.8x

16.8x 20.7x 16.4x 12.6x 15.7x 26.2x

11.1% 15.0% NM 5.6% NM 10.6%

1.7 1.6 NM 2.4 NM 6.2

(16.7%) (7.6%) (10.1%) 27.5% (10.6%) (16.2%)

11.0% 2.4% (2.1%) 13.6% (7.8%) 26.4%

6.1x 6.3x

5.6x 5.8x

12.4x 11.3x

10.3x 10.6x

25.7x 17.3x

18.1x 16.6x

10.6% 10.9%

3.0 2.0

(5.6%) (10.3%)

7.2% 6.7%


27

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Public Company Valuations: Financial Metrics (Cont.) $MM, Except Per Share Data Stock Price 3/10/17 Investment Services, Software, & Technology SEI Investments Co. $51.68 Broadridge Financial Solutions, Inc. 68.50 SS&C Technologies Holdings, Inc. 36.51 DST Systems, Inc. 118.72 Financial Engines, Inc. 41.50 Envestnet, Inc.(1) 35.10

LTM Price Range Low High $38.58 55.90 26.15 94.52 23.56 22.71

$52.54 71.74 37.48 128.66 45.75 41.47

Equity Value $8,226 8,102 7,417 3,746 2,556 1,511

Net Debt

Enterprise Value

($696) 970 2,384 313 (134) 240

$7,531 9,072 9,800 4,058 2,422 1,751 Mean Median

Financial Data, Content, & Analytics S&P Global Inc. Thomson Reuters Corporation Moody's Corporation IHS Markit Ltd. (2) Verisk Analytics, Inc. MSCI Inc. FactSet Research Systems Inc. The Dun & Bradstreet Corporation Morningstar, Inc. Bankrate, Inc.

$131.69 43.19 111.93 40.12 79.94 94.87 177.58 107.80 80.33 10.40

$92.25 37.42 87.30 32.78 75.03 68.70 143.08 97.72 67.74 6.91

$132.08 45.68 114.03 41.00 87.40 96.50 183.64 141.57 89.44 11.90

$34,029 31,418 21,356 16,439 13,297 8,590 7,026 3,969 3,449 937

$1,164 5,160 1,138 3,263 2,249 1,283 171 1,264 (54) 119

$35,193 36,578 22,494 19,702 15,546 9,873 7,197 5,234 3,395 1,056 Mean Median

Online Broker Dealers The Charles Schwab Corporation (3) TD Ameritrade Holding Corporation (3) E*TRADE Financial Corporation (3) Interactive Brokers Group, Inc. (3) GAIN Capital Holdings, Inc. (3) Global Brokerage, Inc.

$42.48 39.42 35.15 36.97 7.66 2.30

$23.83 26.37 21.52 31.97 4.54 2.25

$43.36 47.41 38.61 41.40 8.59 13.00

$56,709 20,796 9,653 2,513 373 13

$2,808 1,769 2,360 5,672 (1,056) 349

$59,517 22,565 12,013 8,185 (683) 362 Mean Median





PEG


5.4x 2.6x 6.5x 2.6x 5.7x 3.0x

5.1x 2.2x 5.9x 2.7x 5.0x 2.6x

14.4x 13.3x 16.2x 10.8x 18.1x 17.3x

14.0x 11.4x 14.0x 10.3x 15.1x 13.0x

25.8x 24.7x 22.6x 20.9x 36.4x 35.9x

23.4x 20.8x 19.0x 19.4x 31.0x 25.9x

13.5% NM 15.0% 10.0% 21.2% 20.0%

1.9 NM 1.5 2.1 1.7 1.8

5.0% (11.6%) 16.5% 12.3% 36.3% 10.1%

10.0% 39.7% 33.2% 4.1% 43.8% 44.3%

4.3x 4.2x

3.9x 3.8x

15.0x 15.3x

13.0x 13.5x

27.7x 25.3x

23.2x 22.1x

15.9% 15.0%

1.8 1.8

11.5% 11.2%

29.2% 36.5%

6.2x 3.3x 6.3x 5.6x 7.8x 8.6x 6.3x 3.1x 4.3x 2.4x

6.2x 3.2x 5.9x 5.6x 7.4x 8.0x 5.9x 3.0x 4.0x 2.1x

14.3x 11.6x 14.0x 20.1x 15.5x 17.4x 17.6x 10.6x 13.6x 9.3x

13.4x 11.0x 12.9x 14.2x 14.7x 15.7x 16.7x 10.5x 12.3x 8.4x

24.9x 20.9x 23.8x 22.8x 25.9x 32.2x 26.2x 14.6x 28.0x 16.6x

21.9x 18.5x 21.5x 19.5x 24.2x 26.7x 23.8x 15.5x 25.3x 15.0x

13.0% 8.0% 10.2% 14.4% 10.8% 14.3% 10.7% 5.9% NM 15.7%

1.9 2.6 2.3 1.6 2.4 2.2 2.4 2.5 NM 1.1

6.5% (0.8%) 2.5% 6.8% 13.3% 7.0% 10.6% 4.1% 0.3% 18.8%

1.7% (0.9%) 8.8% 57.2% 6.0% 7.3% 6.5% 3.6% 5.3% (354.5%)

5.4x 5.9x

5.1x 5.8x

14.4x 14.1x

13.0x 13.1x

23.6x 24.4x

21.2x 21.7x

11.4% 10.8%

2.1 2.3

6.9% 6.7%

(25.9%) 5.6%

8.0x 6.8x 5.8x 5.7x NM NA

7.0x 6.2x 5.5x 5.2x NM NA

NA 14.8x NA 9.6x NM NA

NA 13.2x NA 7.7x NM NA

32.6x 25.8x 19.2x 28.1x 10.3x NA

26.8x 22.4x 18.8x 24.8x 9.2x NA

20.7% 12.0% 15.6% 16.0% 7.5% NM

1.6 2.1 1.2 1.8 1.4 NA

18.4% 3.9% 17.4% 2.9% (2.2%) NA

21.0% 5.6% 13.4% 18.6% 12.2% 2.9%

6.6x 6.3x

5.9x 5.8x

12.2x 12.2x

10.5x 10.5x

23.2x 25.8x

20.4x 22.4x

14.4% 15.6%

1.6 1.6

8.1% 3.9%

12.3% 12.8%

Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM. (1) Financial metrics pro-forma for Yodlee acquisition. (2) Financial metrics reflect IHS / Markit merger. (3) Enterprise Value and Net Debt exclude Cash.

28

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

3/9/17


Message Automation Limited

Trade Processing

NA

NA

3/8/17

Numerix LLC

TFG Financial Systems

Risk

NA

NA

3/7/17

Hellman & Friedman LLC; GIC Pte. Ltd.

Allfunds Bank S.A.

Mutual Fund Platform

$1,904

NA

3/3/17

European Energy Exchange AG

Nodal Exchange, LLC

Exchanges

NA

NA

3/1/17

Payward, Inc.

Cryptowatch

Analytics

NA

NA

2/21/17

Covisum, LLC

PrairieSmarts, LLC

Risk Platform

NA

NA

Data / Analytics

NA

NA

Wealth Management Software

NA

NA

2/15/17

Moody's Corporation

2/15/17

AdvisorEngine, Inc.

SCDM Germany GmbH, Structured Finance Data and Analytics Business Wealthminder, Inc.

2/6/17

Thomson Reuters Corporation

Avox Limited

Compliance Data

NA

NA

2/6/17


Clarient Global LLC

Regulatory Data

NA

NA

2/1/17

BT Group plc

IP Trade SA

Trading Technology

NA

NA

2/1/17

StoneCastle Insured Cash Sweep, LLC

Broker Software

NA

NA

Regulatory Tech

NA

NA

Fund Management Software

NA

NA

Intermedium Financial LLC

1/30/17

Compliance Solutions Strategies

1/27/17

Linedata Services SA

Advise Technologies, Ascendant Compliance Management, The Gravitas Technology Services, LLC

1/25/17

IS Prime Risk Services Inc.

Think Liquidity LLC

Risk / Analytics

NA

NA

1/23/17

Visible Alpha, LLC

ONEaccess

Data / Analytics

NA

NA

1/19/17

FairFX Group Plc

Q Money Limited

Online Brokerage

$2

NA

Access Investors Network, Inc.

Investing Platform

NA

NA

1/18/17

North Capital Investment Technology Inc. StockTwits, Inc.

Spark Finance, LLC

Data / Analytics

NA

NA

1/9/17

InvestCloud, LLC

Babel Systems Limited

Trade Processing

$20

NA

1/18/17


29

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date 1/4/17 1/4/17 1/4/17

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

Dash Financial LLC

LiquidPoint, LLC

Trading Platform

NA

NA

Capital Markets Software

NA

NA

Quant House SAS

Trading Platform

NA

NA

Broker Software

$67

NA

Fund Administration

$89

NA

Online Broker

NA

NA

NewSpring Capital; NewSpring Holdings L.P. Company owned by Pierre Feligioni

Vertical Management Systems, Inc.

12/20/16

FactSet Research Systems Inc.

Vermilion Software Inc.

12/15/16

SS&C Technologies Holdings, Inc.

Conifer Financial Services LLC

12/9/16

comdirect bank Aktiengesellschaft

OnVista AG Northeast Retirement Services, LLC

Fund Administration

$115

NA

12/1/16

Benefit Plans Administrative Services, Inc. Ascensus, Inc.

National Retirement Services, Inc.

Fund Administration

NA

NA

11/30/16

Capital Foundry LLC, Investment Arm

EquityNet, LLC

Crowdfunding

NA

NA

Trading Platform

NA

NA

Fund Administration

NA

NA

12/5/16

11/28/16

Virtu Financial, Inc.

11/28/16

MainstreamBPO Limited

Teza Technologies, Select Strategic Telecommunications Assets Galileo Fund Services Limited

11/28/16

Insurance Services Office, Inc.

IntelliStance, LLC

Data / Analytics

NA

NA

11/21/16

London Stock Exchange Group plc

Mergent, Inc.

Data / Analytics

NA

NA

11/21/16

AcadiaSoft, Inc.

ProtoColl

Collateral Management

NA

NA

11/14/16

Playtech plc

CFH Group A/S

Foreign Exchange

$62

3.2x

11/8/16

Preqin Ltd.

Baxon Solutions Limited

Broker Software

NA

NA

11/2/16

Folio Dynamics Inc.

SAS Capital Management, LLC

Broker Software

NA

NA

10/24/16

TD Ameritrade Holding Corporation

Scottrade Financial Services, Inc.

Online Brokerage

$2,792

NA

10/24/16


Salentica Inc.

Broker Software

NA

NA

10/20/16

Forum Trading Solutions Ltd

GMEX Technologies Limited

Trading Technology

NA

NA


30

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

10/14/16

Morningstar, Inc.

PitchBook Data, Inc.

Data / Analytics

$225

7.2x

10/13/16

Investview, Inc.

RoboVest, Inc.

Trading Platform

NA

NA

10/11/16

Drillinginfo, Inc.

GlobalView Software, Inc.

Trading Platform

NA

NA

10/10/16

Yodlee, Inc.

Wheelhouse Analytics, LLC

Data / Analytics

NA

NA

10/6/16

Ion Investment Group Limited

Reval Holdings, Inc.

Treasury Software

NA

NA

9/28/16

SourceHOV LLC

TransCentra, Inc.

Treasury Software

NA

NA

9/26/16

CBOE Holdings, Inc.

BATS Global Markets, Inc.

Exchanges

$3,697

1.9x

9/22/16


REDI Holdings, LLC

Data / Analytics

NA

NA

9/21/16

LexisNexis Legal & Professional Inc.

Intelligize, Inc.

Trading Platform

NA

NA

9/14/16

IRESS Limited

INET BFA Pty Ltd.

Data / Analytics

$10

NA

9/14/16


Wells Fargo Global Fund Services LLC

Fund Administration

NA

NA

9/13/16

TD Securities Inc.

Albert Fried & Company, LLC

Trading Platform

NA

NA

9/7/16

McKinsey & Company, Inc.

PriceMetrix, Inc.

Broker Software

NA

NA

8/25/16

BGC Partners, Inc.

Perimeter Markets Inc.

Trading Platform

NA

NA

8/24/16

Yintech Investment Holdings Limited

Gold Master (HK) Company Limited

Trading Platform

$218

6.8x

8/11/16

Aegon UK plc

Cofunds Holdings Limited

Personal Financial Management

$182

NA

8/11/16

KCG Hotspot FX LLC

Javelin SEF, LLC

Ratings Agency

NA

NA

7/25/16

E-Trade Financial

OptionsHouse, LLC

Trading Platform

$725

7.0x

7/18/16

Moody's Singapore Pte. Ltd.

Korea Investors Service, Inc.

Ratings Agency

$97

3.4x

7/7/16

Legg Mason, Inc.

Financial Guard LLC

Robo Advisors

NA

NA


31

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date

Acquirer

Target

Target Subsector

Enterprise Value

EV / LTM Revenue

MYVEST CORP

Advisor Software

NA

NA

Risk & Analytics

NA

NA

Financial Software

$40

3.3x

6/20/16

Teachers Insurance & Annuity Association of America, Endowment Markit Ltd.

Prism Valuation Inc.

6/14/16


4Sight Financial Software Limited

6/14/16

Fair Isaac Corporation

QuadMetrics Inc.

Risk & Analytics

$6

NA

5/25/16

Bregal Sagemount

Discovery Data

Data / Analytics

NA

NA

Clearing / Settlement

NA

NA

Exchanges

NA

NA

Personal Financial Management

NA

NA

Risk Analytics

NA

NA

Exchanges

NA

NA

Wealth Management Software

NA

NA

Online Broker

$275

NA

Broker Software

NA

NA

Fund Administration

NA

NA

Data / Information Services

$6,139

5.5x

Risk Analytics

NA

NA

6/30/16

5/11/16


5/5/16

ISEG Limited

Dojima LLC (nka:Broadridge Derivatives Clearing) Startup Stock Exchange

4/27/16

Affirm, Inc.

Sweep, Inc.

4/14/16

Euclid Opportunities Fund

Enso LP

4/13/16

European Energy Exchange AG

Cleartrade Exchange Pte. Ltd.

4/11/16

Huatai International Finance I Limited

AssetMark, Inc.

4/5/16

Ally Financial Inc.

TradeKing Group, Inc.

3/31/16

Morningstar, Inc.

RightPond

3/21/16

Institutional Capital Network, Inc.

3/21/16

IHS Inc. (nka:IHS Markit Ltd.)

3/16/16

Markit Ltd.

Credit Suisse Group AG, HedgeFocus Business Markit Ltd. Fitch Solutions, Inc., Credit Default Swap Pricing Service


32

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date

Target

Series

Amount

NA

$13

Investors

Target Subsector

2/19/17

One Tap Buy

2/16/17

OpenFin

Series B

$15

2/7/17

Folio

Series A

$16

Mizuho Capital, Mobile Internet Capital, Softbank, Mizuho Securities Bain Capital Ventures, DRW Venture Capital, J.P. Morgan, Nyca Partners, Pivot Investment Partners JAFCO, Monex Ventures, Rakuten Fintech Fund

1/31/17

Wealthsimple

NA

$15

Power Financial Corp.

Robo Advisors

12/24/16

Pakistan Stock Exchange

NA

$84

Chinese Consortium

Exchanges

12/23/16

Nutmeg Savings and Investment Ltd.

NA

$15

Taipei Fubon Commercial Bank

12/22/16

Axoni

12/15/16

Personal Capital Corp.

12/14/16

Stash

Series A

$18

NA

$25

Andreessen Horowitz, Digital Currency Group, Euclid Opportunities, Goldman Sachs, JP Morgan Chase & Co. Thomson Silicon Valley Bank

Series B

$25

Breyer Capital, Entrée Capital, Goodwater Capital, Valar Ventures

11/17/16

Peer Street Inc.

Series A

$15

11/17/16

T-REX Group Inc.

Series B

$10

Andreessen Horowitz, Felicis Ventures, The Kaiser Family Foundation, Montage Ventures, Rembrandt Venture Partners The Ecosystem Integrity Fund, Safeguard Scientifics Inc.

Trading Platform Trading Platform Asset Management Platform

Robo-Advisor Distributed Ledger Robo-Advisor Robo-Advisor Crowdfunding Risk / Analytics

11/1/16

Droit Financial Technologies

Series A

$16

Andreessen Horowitz, Bessemer Venture Partners, Khosla Ventures, Point72 Asset Management, Spark Capital Amanda Investment Group, Balderton Capital Management, Pentech Ventures, Schroders Bain Capital Ventures, Khosla Ventures, Lightspeed Venture Partners, Nyca Partners, QED Investors, SV Angel DRW, Goldman Sachs, Pivot Investment Partners, Wells Fargo

10/31/16

Riskalyze Inc.

Series A

$20

FTV Management Group LP

10/26/16

AX Trading Group

NA

$20

Undisclosed

Trading Platform

10/17/16

InnoTREE Network Tech Co.

Series B

$15

Baoli (Hengqin) Capital Management

Data / Analytics

10/12/16

Cloud9 Technologies

NA

$30

9/30/16

OpenGamma

NA

$13

11/14/16

Quantopian

11/14/16

Nutmeg Saving and Investment Ltd.

11/14/16

Roofstock Inc.


Series C

$25

NA

$32

Series B

$20

JPMorgan Chase & Co., ICAP, Barclays, Point72 Ventures, Hudson Ridge Asset Management Accel Partners, ICAP Plc

Trading Technology Robo-Advisor Crowdfunding Trading / Regulatory Software Broker Software

Trading Technology Risk / Analytics

33

SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date

Target

Target Subsector

Series

Amount

Series C

$72

Undisclosed Investors

Crowdfunding

NA

$25

Undisclosed Investors

Broker Software Data / Analytics

Investors

9/21/16

OurCrowd Ltd.

9/14/16

InvestCloud

9/12/16

Quandl

Series B

$12

August Capital, Nexus Venture Partners

8/18/16

Lancai

Series B

$27

Letv.com

8/17/16

Crowdcube

NA

$11

Balderton Capital

7/22/16

Fantex

NA

$59

Undisclosed

Trading Platform

7/13/16

OpenDoor Trading

NA

$10

J F Hartfield & Company

Trading Platform

7/6/16

National Stock Exchange of India

NA

$135

Veracity Insurance Solutions

6/19/16

Quoine

Series A

$20

JAFCO

Bitcoin Trading

6/7/16

NexusCrowd

NA

$16

Downing Street Financial

Crowdfunding

5/19/16

Tink

Series B

$10

5/19/16

Personal Capital Corporation

Series E

$75

ABN AMRO, Creades, Skandinaviska Enskilda Banken, Sunstone Capital IGM Financial

5/12/16

EuroCCP

NA

$16

Euronext

4/25/16

bitFlyer

Series C

$27

SBI FinTech Fund, Venture Labo Investment

4/21/16

Acorns

Series D

$30

e.ventures, Greycroft, PayPal, Rakuten

Investing Platform Crowdfunding

Exchanges

PFM Robo-Advisor Clearing / Settlement Bitcoin Exchange Robo Advisors

4/13/16

Vestmark

NA

$30

Summit Partners

4/5/16

Reonomy

Series C

$22

Bain Capital, Softbank

Wealth Management Software Data / Analytics

4/1/16

Swanest

NA

$10

Andreessen Horowitz

Robo-Advisor


34

SECTION IV: Insurance / Benefits

35

INSURANCE / BENEFITS Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 3/10/17 Healthcare / Insurance Technology Quintiles IMS Holdings, Inc. Verisk Analytics, Inc. athenahealth, Inc. Guidewire Software, Inc. Ebix, Inc. Crawford & Company Polaris Consulting & Services Limited Symbility Solutions Inc.

$80.70 79.94 115.09 57.78 62.60 9.27 2.71 0.33

LTM Price Range Low High

Equity Value

Net Debt

$61.21 75.03 90.11 49.18 36.20 5.51 2.12 0.19

$19,039 13,297 4,548 4,273 1,972 520 276 80

$5,962 2,249 144 (583) 155 106 (70) (5)

$83.04 87.40 143.85 64.00 65.10 14.37 3.26 0.42

Enterprise Value $25,001 15,546 4,692 3,690 2,127 626 206 75 Mean Median





PEG


4.6x 7.8x 4.3x 8.3x 7.2x 0.6x 0.7x 3.0x

3.1x 7.4x 3.6x 7.0x 6.5x 0.5x NA 2.5

21.5x 15.5x 19.4x 47.0x 19.3x 5.3x NA NM

12.2x 14.7x 15.3x 43.0x 17.5x 4.5x NA 49.7

20.9x 25.9x 64.0x 83.7x 22.8x 13.1x NA NM

18.0x 24.2x 46.6x 86.0x 21.1x 11.9x NA NM

12.9% 10.8% 25.4% 18.5% 15.0% 10.0% NM NM

1.6 2.4 2.5 4.5 1.5 1.3 NA NM

24.3% 13.3% 17.1% 12.1% NA (3.6%) (2.3%) (1.9%)

73.1% 6.0% 11.9% 13.2% 14.0% (4.4%) (2.9%) 13.9%

4.6x 4.5x

4.4x 3.6x

21.3x 19.3x

22.4x 15.3x

38.4x 24.4x

34.6x 22.6x

15.4% 14.0%

2.3 2.0

8.4% 12.1%

15.6% 12.6%


36

INSURANCE / BENEFITS Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date 2/28/17

Acquirer

Target

Advent International Corporation

CCC Information Services Inc.

2/21/17

CareCredit, LLC

2/15/17

Sapiens International Corporation N.V.

Citibank, N.A., Citi Health Card Portfolio StoneRiver, Inc.

Target Subsector

Enterprise Value

EV / LTM Revenue

Claims Management

NA

NA

Healthcare Payments

NA

NA

Insurance Tech

$102

1.3x

Revenue Cycle Management

NA

NA

Benefits Platform

$4,800

2.1x

Insurance Tech

NA

NA

Lead Gen

NA

NA

2/14/17

Riverside Partners LLC

2/10/17

The Blackstone Group L.P.

2/9/17

Charles Taylor InsureTech Limited

Medical Reimbursements of America, Inc. Aon plc, Benefits Administration and HR Business Process Outsourcing Otak Limited

2/8/17

Compare Africa Group

TopCheck UG (haftungsbeschränkt)

2/7/17

Centauri Health Solutions, Inc.

Human Arc Corporation


NA

NA

1/26/17

Insurity, Inc.

Valen Technologies, Inc.

Insurance Data / Analytics

NA

NA

Benefits Software

NA

NA

Telematics

$49

NA

Insurance Data / Analytics

NA

NA

1/25/17 1/19/17 1/4/17

PlanSource Benefits Administration, Inc. Inflexion Private Equity Partners LLP; Inflexion Enterprise Fund IV Duck Creek Technologies, Inc.

Next Generation Enrollment, Inc. My Policy Limited Yodil, Inc.

12/23/16

Ebix, Inc.

Wdev Soluções em Tecnologia S.A.

Insurance Tech

NA

NA

12/19/16

Guidewire Software, Inc.

ISCS, Inc.

Insurance Tech

$160

NA

12/15/16

Mercer LLC

Thomsons Online Benefits Limited

HR/Benefits Software

NA

NA

12/8/16

Insurity, Inc.

Systema Software, LLC

Claims Admin. Software

NA

NA

11/30/16

Vimo, Inc.

Array Health Solutions Inc.

Insurance Exchange

NA

NA

11/28/16

Allstate Non-Insurance Holdings, Inc.

SquareTrade, Inc.

Insurance

$1,430

NA

11/17/16

nThrive, Inc.

Adreima, Inc.


NA

NA

11/1/16

WageWorks, Inc.

ADP's HAS & COBRA Businesses

HAS and COBRA Administration

$235

NA


37

INSURANCE / BENEFITS Selected Recent Acquisitions – Trailing 12 Months (Cont’d) ($MM) Announced Date 10/24/16

Target Subsector

Enterprise Value

EV / LTM Revenue

Analytics

NA

NA

Convey Health Solutions, Inc.

Healthcare Insurance Administration

NA

NA

ACR Capital Holdings Pte. Ltd.

Reinsurance

NA

NA

Insurance Trading

NA

NA

Insurance Software

NA

NA

Insurance Data

NA

NA

Acquirer

Target

AIR Worldwide Corporation

Analyze Re Inc.

9/29/16

New Mountain Capital, LLC; New Mountain Capital Partners IV L.P.; Eir Shenzhen Investment Holdings Co., Ltd.; Shenzhen Qianhai Financial Applied Systems, Inc.

9/28/16

RGI S.P.A.

IS2, eTrading Platform for Personal Lines Kapia Solutions Sas

9/26/16

Callcredit Information Group Limited

Recipero Limited

9/26/16

IRESS Limited

Financial Synergy Pty. Limited

Insurance Software

$69

3.3x

8/9/16

Applied Systems, Inc.

Relay Software Limited

Insurance Software

NA

NA

8/4/16


FirstBest Systems, Inc.

Risk Assessment

$34

NA

8/4/16

Benefit Express Services, LLC

Transcend Technologies Group, Inc.

HR Software

NA

NA

7/21/16

GoHealth, LLC

1SourceAdmin LLC

HR Software

NA

NA

6/29/16

Global Healthcare Exchange, LLC

H-Card, LLC

Healthcare Payments

NA

NA

6/7/16

Connecture, Inc.

ConnectedHealth, LLC

Benefits Tech

$7

NA

Vertafore, Inc.

Insurance Tech

NA

NA

Duck Creek Technologies, Inc.

Claims Software

NA

NA

Healthcare Payments

NA

NA

Insurance Analytics

$42

NA

10/6/16 10/5/16

4/18/16

Vista Equity Partners; Bain Capital Private Equity, LP Apax Partners LLP

4/5/16

SwervePay, LLC

Symbiosis Health Inc.

3/29/16


EagleEye Analytics, Inc.

5/2/16


38

INSURANCE / BENEFITS Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date

Target

Series

Amount

Investors

2/22/17

EverQuote, Inc.

Series B

$13

Link Ventures, Second Alpha

2/7/17

CXA Group

Series B

$25

B Capital Group, EDBI

1/5/17

Namely Inc.

Series D

$50

12/5/16

Lemonade Inc.

Series B

$34

11/15/16

CareCloud

Series C

$32

11/3/16

EasyPolicy

NA

$10

Altimeter Capital, Four Rivers Group, Greenspring Associates, Matrix Partners, Scale Venture Partners, Sequoia Capital Aleph, General Catalyst, Google Ventures, Sequoia Capital, Thrive Capital, Tusk Ventures, XL Innovate Adams Street Partners, Blue Cloud Ventures, First Data, Intel Capital, Norwest Venture Partners, PNC Financial Services Group, Burman Family Office, Unilazer Ventures

10/20/16

EverQuote, Inc.

Series B

$23

10/19/16

Ladder Financial Inc.

Series A

$14

10/4/16

Hixme Inc.

Series B

$14

9/28/16

Sedgwick

NA

$500

BrownSavano Direct Capital Partners, Oceanic Partners, Stratim Capital LLC, T Capital Management LLC 8VC, Canaan Partners, Lightspeed Venture Partners, Nyca Partners LLC Kleiner Perkins Caufield & Byers, Propel Venture Partners, Rosemark Capital Group, Transamerica Ventures Fund Caisse de Depot et Placement du Quebec

9/26/16

InstaMed Communications, LLC

NA

$50

Carrick Capital Partners LLC

9/21/16

FinanceFox

Series A

$28

Horizons Ventures, Target Ventures

6/14/16

League

Series A

$25

5/20/16

Clover Health

Series C

$165

5/19/16

Shift Technology

Series A

$10

Manulife Financial, OMERS Ventures, Power Financial, Quantum Valley Investments, Real Ventures, RBC Advanced Finance & Investment Group, AME Cloud, Arena Ventures, Casdin Capital, First Round, Floodgate, Sequoia Accel, Elaia Partners, Iris Capital Management

Target Subsector Insurance Marketplace Benefits Software HR / Benefits Software Insurance Revenue Cycle Management Insurance Lead Gen Insurance Lead Gen Life Insurance HR Software Claims Management Healthcare Payments Insurance Tech Health Insurance Tech Insurance Claims Analytics

5/10/16

Simplificare

Series C

$20

500 Startups, Bee Partners, Canaan, FinTech Collective, Nyca Partners, Vertical Venture Partners, XL Innovate 83North, American Express, Heritage Group, Social Capital

4/26/16

Trov, Inc.

Series C

$23

Anthemis Group, Guidewire, Oak, Suncorp Group

Healthcare Payments / Financing Insurance

4/14/16

Eligible

NA

$25

Undisclosed

Healthcare Payments

4/6/16

Bright Health

Series A

$80

Bessemer, Flare Capital, NEA, Waterline Ventures

5/17/16

Embroker


Series A

$12

Insurance

Health Insurance Innovator

39

SECTION V: GCA Overview

40

GCA OVERVIEW Financial Technology Team

San Francisco

New York

One Maritime Plaza, 25th Fl. San Francisco, CA 94111 (415) 318-3600

640 Fifth Avenue, 10 Fl. New York, NY 10019 (212) 999-7090

th

Sean Minnihan

Managing Director Global Head of FinTech

Phone: (212) 999-7077 Mobile: (917) 364-6230 [email protected]

Peter Bang

Derek Bell

London

Tokyo

1 Southampton St. London WC2R0LR United Kingdom +44 20 7484 4040

11-1 Marunouchi 1-chome Chiyoda-ku, Tokyo 100-6230 Japan +81 (3) 6212-7100

Managing Director

Managing Director

Managing Director

Paul DiNardo

Managing Director

Steve Fletcher

Rob Freiman






Director

Michio Suzuki*

David Krueger Vice President

Vice President

Saif Malik*

Alexander Berry

Malik Gill

Phone: +81 3-6212-7145 Mobile: +81 90-7412-9411 [email protected]


Phone: +44 (0) 207 038-3216 Mobile: +44 (0) 778 606-8553 [email protected]



Director

* Saif Malik is a Vice President at GCA Savvian Europe Limited * Michio Suzuki is a Director at GCA Corporation

Associate

Analyst

41