May 5, 2017 - Saif Malik is a Vice President at GCA Savvian Europe Limited .... Alliance Data Systems Corporation. $14,2
Financial Technology Sector Summary Week of May 8, 2017
1
DEAL DASHBOARD Financial Technology $11.7 Bn | 1,179 Deals
(3)
Industry Stock Market Performance
LTM Financing Volume
$347.2 Bn | 3,159 Deals
Last Twelve Months
Select Recent Financing Transactions
Company
(3)
(1)
Amount ($MM) $110.0
LTM M&A Volume
160
Select Recent M&A Transactions
150
Target
Acquirer
140
EV ($MM) $675.0
130
$70.0 $56.0 $54.0
$30.0
120
NA
110 100
NA
90
$50.0
NA
80 5/5/16
6/20/16
$32.0
Aicai
$17.5
8/3/16
9/16/16
11/1/16
12/15/16
3/15/17
4/28/17
NA
Exchanges
Financial Data, Content, & Analytics
Information Processors / Credit Bureaus Banking & Lending Technology
Online Broker Dealers
$15.7
1/30/17
Payments
Investment Services, Software, & Technology
NA NA
Healthcare / Insurance Technology S&P 500
Quarterly Financing Volume
(3)
Quarterly M&A Volume
$10 $8
500 $8.9 299
298
$6
316
276
400
300
$120
876 783
$100 $80
(3)
1000
818
750
$99.4
$97.8 $83.1
$81.6
800
600
$60 $4
200
$2
$2.6
$2.6
Q3 2016
Q4 2016
$3.0
$0
100 0
Q2 2016
Financing Volume ($Bn)
Q1 2017
Financing Deal Count
400
$40
200
$20 $0
0 Q2 2016
Q3 2016 M&A Volume ($Bn)
Notes: Source: Capital IQ, CB Insights and GCA FinTech Database. Market Data as of 5/5/17. 1) Refer to footnotes on page 5 for index composition. 2) Represents transactions announced between 4/24/17 and 5/8/17. 3) Deal counts include transactions with undisclosed funding amounts and enterprise values for financing and M&A transactions respectively.
Q4 2016
Q1 2017
M&A Deal Count
2
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
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
Sean Minnihan
Peter Bang
Derek Bell
Paul DiNardo
Steve Fletcher
Rob Freiman
Managing Director Global Head of FinTech
Managing Director
Managing Director
Managing Director
Managing Director
Director
Phone: (212) 999-7077 Mobile: (917) 364-6230
[email protected]
Phone: (212) 999-7074 Mobile: (917) 783-4057
[email protected]
Phone: (212) 999-7089 Mobile: (914) 953-0689
[email protected]
Phone: (212) 999-7097 Mobile: (650) 483-7246
[email protected]
Phone: (415) 318-3661 Mobile: (415) 518-6725
[email protected]
Phone: (212) 999-7075 Mobile: (973) 229-0436
[email protected]
Michio Suzuki*
David Krueger
Saif Malik*
Alexander Berry
Malik Gill
Director
Vice President
Vice President
Associate
Analyst
Phone: +81 3-6212-7145 Mobile: +81 90-7412-9411
[email protected]
Phone: (212) 537-4534 Mobile: (616) 822-7179
[email protected]
Phone: +44 (0) 207 038-3216 Mobile: +44 (0) 778 606-8553
[email protected]
Phone: (212) 999-7079 Mobile: (818) 851-2300
[email protected]
Phone: (212) 537-4529 Mobile: (646) 668-6714
[email protected]
* Saif Malik is a Vice President at GCA Savvian Europe Limited * Michio Suzuki is a Director at GCA Corporation
3
SECTION I: Market Summary
4
MARKET SUMMARY Industry Stock Market Performance 160
170
Last 12 Months
Last 3 Years
160
150
150
140 140
130 130
120
120
110
110
100 100
90 90 80
80 5/5/16
6/20/16
8/3/16
9/16/16
11/1/16
12/15/16
1/30/17
3/15/17
4/28/17
Indexed Price Performance Sector Information Processors / Credit Bureaus Banking & Lending Technology Payments Investment Services, Software, & Technology Financial, Data, Content, & Analytics Exchanges Online Broker Dealers Healthcare / Insurance Technology
70 5/5/14
8/21/14
12/9/14
Payments
3 Months
1 Year
3 Years
12.0% 8.8% 7.8% 5.6% 4.3% 3.5% (1.1%) (2.2%)
17.7% 22.0% 18.7% 14.0% 18.7% 16.2% 42.0% (0.8%)
40.5% 55.6% 38.2% 51.9% 7.6% 38.6% 39.9% 29.6%
3/27/15
7/15/15
(1)
2/18/16
6/7/16
9/23/16
Exchanges
Financial Data, Content, & Analytics
Online Broker Dealers
11/2/15
(3)
(5)
(7)
Investment Services, Software, & Technology
1/11/17
5/1/17
(2)
Information Processors / Credit Bureaus
Banking & Lending Technology
(6)
Healthcare / Insurance Technology
Notes: (1) Payments: ADS, AIM:SCH, ASX:PPT, AXP, BGC, BOVESPA:CIEL3, CATM, DFS, EEFT, ENXTPA:EDEN, FDC, FLT, GDOT, GPN, MA, PAR, PYPL, SHOP, SQ, TSE:3769, TSS, UEPS, V, VNTV, WEX, WPG, WU, XTRA:WDI. (2) Exchanges: ASX:ASX, ATSE:EXAE, BME:BME, BMV:BOLSA A, BOVESPA:BVMF3, CBOE, CME, ICE, JSE:JSE, KLSE:BURSA, LSE, NDAQ, SEHK:388, SGX:S68, TSX:X, WSE:GPW, XTRA:DB1. (3) Financial Data, Content & Analytics: DNB, ENXTPA:FIM, FDS, HOSE:HHS, MCO, MORN, MSCI, RATE, SPGI, 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, ELVT, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN. (7) Investment Services, Software, & Technology: BR, DST, ENV, FNGN, SEIC, SSNC. (8) Healthcare / Insurance Technology: ATHN, CRD.B, DAR:CRDB, EBIX, GWRE, BSE:532254, SY, VRSK.
5
(8)
(4)
MARKET SUMMARY EBITDA Multiples and Margins
2017E EBITDA Multiples
2017 EBITDA Margins
Healthcare / Insurance Technology
Exchanges
16.5x
Information Processors / Credit Bureaus
Online Broker Dealers
14.8x
Banking and Lending Technology
14.2x
Financial Data, Content, & Analytics
Exchanges
14.0x
Banking and Lending Technology
Investment Services, Software, & Technology
13.9x
Information Processors / Credit Bureaus
Financial Data, Content, & Analytics
13.6x
Payments
12.7x
Online Broker Dealers
0.0x
10.0x
45.6%
36.8%
32.4%
31.2%
Investment Services, Software, & Technology
25.9%
Payments
25.6%
Healthcare / Insurance Technology
7.0x
5.0x
58.4%
15.0x
Notes: Numbers represent medians of sub-sectors. Details available in later pages.
20.0x
18.8%
0%
10%
20%
30%
40%
50%
60%
70% 6
MARKET SUMMARY Price / Earnings Multiples and PEG Ratios
2017E Price / Earnings Multiples
2017E PE / Growth (“PEG” Ratio) | Long-Term EPS Growth
Banking and Lending Technology
29.1x
Information Processors / Credit Bureaus
25.0x
Online Broker Dealers
24.2x
Healthcare / Insurance Technology
23.0x
Banking and Lending Technology
Information Processors / Credit Bureaus
1.9
1.8
Healthcare / Insurance Technology
Investment Services, Software, & Technology
21.9x
Investment Services, Software, & Technology
Payments
0.0x
17.9x
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.
11.3%
10.8%
14.0%
1.5
Online Broker Dealers
16.0%
16.6%
1.3
Payments
1.2
0.0
0.5
1.0
1.5
15.7%
13.7%
2.0
Exchanges
22.0x
20.1x
2.1
Financial Data, Content, & Analytics
Financial Data, Content, & Analytics
Exchanges
2.2
14.9%
2.0
2.5
7
MARKET SUMMARY LTM Price Performance and 2017 P/E – Payments / Banking ($MM)
($MM)
Networks Visa Inc. Mastercard Incorporated American Express Company PayPal Holdings, Inc. Discover Financial Services Sector Average
Market Cap.
LTM Price Performance
P/E 2017
$212,329 $125,946 $70,001 $59,222 $22,926
19% 22% 23% 27% 10%
26.4x 27.2x 13.8x 27.8x 10.0x
$98,085
20%
21.0x
Prepaid Blackhawk Network Holdings, Inc. Green Dot Corporation Net 1 UEPS Technologies, Inc. Sector Average
Integrated Payments Hardware / Technology
Market Cap.
LTM Price Performance
P/E 2017
$19,949 $14,683 $13,124 $12,526 $10,574 $8,092 $7,427 $7,400 $1,837 $1,197 $506 $425 $224 $34
(10%) 45% 19% 18% 11% 7% 42% 52% (22%) 24% (1%) NA 5% (13%)
14.7x 10.5x 22.0x 19.5x 17.8x 23.2x 25.3x 93.7x 66.4x 10.1x 15.8x NM 19.2x NM
Sector Average
$7,000
14%
28.2x
Money Transfer
Market Cap.
LTM Price Performance
P/E 2017
$9,138 $4,441
3% 12%
11.5x 18.7x
$6,790
7%
15.1x
Market Cap.
LTM Price Performance
P/E 2017
$14,276 $12,307 $6,195 $4,265
28% (12%) 38% 10%
13.8x 16.0x 23.8x 18.7x
$9,261
16%
18.1x
Merchant Processing Cielo S.A. First Data Corporation Global Payments Inc. Vantiv, 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
The Western Union Company Euronet Worldwide, Inc. Sector Average
Closed Loop Alliance Data Systems Corporation FleetCor Technologies, Inc. Edenred SA WEX Inc. Sector Average
Ingenico Group - GCS NCR Corporation VeriFone Systems, Inc. Cardtronics plc Everi Holdings 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 Q2 Holdings, Inc. Bottomline Technologies (de), Inc. On Deck Capital, Inc. Elevate Credit, 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 May 5, 2017.
0
Market Cap.
LTM Price Performance
P/E 2017
$2,355 $1,757 $587
32% 53% (7%)
25.4x 17.9x 5.8x
$1,566
26%
16.3x
Market Cap.
LTM Price Performance
P/E 2017
$5,875 $5,236 $2,085 $1,646 $440 $133
(18%) 55% (31%) (6%) 344% 51%
18.5x 12.8x 12.5x 12.7x 7.0x NA
$2,569
66%
12.7x
Market Cap.
LTM Price Performance
P/E 2017
$32,265 $27,455 $25,485 $7,619 $6,181 $3,663 $2,927 $2,813 $2,322 $1,572 $952 $334 $330 $115
26% 18% 21% 19% 67% 41% 31% 23% (16%) 68% 2% (7%) NA 34%
27.9x 19.5x 23.4x 30.3x 36.8x 57.7x 30.8x 52.2x NM NM 25.6x NM 25.2x NA
$8,145
25%
32.9x
Market Cap.
LTM Price Performance
P/E 2017
$20,377 $16,686 $4,270 $2,263
20% 16% 30% 29%
23.3x 22.9x 26.8x 38.3x
$10,899
24%
27.8x
8
MARKET SUMMARY LTM Price Performance and 2017 P/E – Securities / Cap. Mkts. / Data & Analytics ($MM)
($MM)
Exchanges - Americas
0
CME Group Inc. Intercontinental Exchange, Inc. BM&FBOVESPA S.A. Nasdaq, Inc. CBOE Holdings, Inc. TMX Group Limited Bolsa Mexicana de Valores, S.A.B. de C.V. Sector Average
Exchanges - Asia
0
Hong Kong Exchanges and Clearing Limited ASX Limited Singapore Exchange Limited Bursa Malaysia Berhad Sector Average
Exchanges - Europe
0
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. INTL FCStone Inc. Investment Technology Group, Inc. Virtu Financial, Inc. Sector Average
Market Cap.
LTM Price Performance
P/E 2017
$40,354 $35,796 $12,452 $11,324 $9,380 $3,194 $1,055
28% 19% 31% 7% 34% 42% 15%
24.4x 20.1x 16.3x 16.5x 26.8x 16.3x 18.7x
$16,222
25%
19.9x
Market Cap.
LTM Price Performance
P/E 2017
$29,695 $7,373 $5,666 $1,237
0% 17% (4%) 8%
33.4x 22.2x 21.9x 24.2x
$10,993
5%
25.4x
Market Cap.
LTM Price Performance
P/E 2017
$18,995 $15,317 $2,941 $905 $500 $344
19% 16% 11% 0% 22% (4%)
19.1x 23.0x 17.4x 17.1x 15.6x 33.1x
$6,500
11%
20.9x
Market Cap.
LTM Price Performance
P/E 2017
$7,050 $3,288 $689 $669 $610
51% 28% 40% 7% (20%)
56.8x 14.1x 12.1x NM 15.8x
$2,461
21%
24.7x
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
Notes: Source: CapitalIQ and Wall Street Research. Market data as of May 5, 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. Global Brokerage, Inc. Sector Average
Market Cap.
LTM Price Performance
P/E 2017
$8,150 $8,159 $7,630 $3,877 $2,515 $1,549
17% 8% 22% 3% 34% 19%
20.9x 22.9x 19.3x 18.7x 29.5x 27.8x
$5,313
17%
23.2x
Market Cap.
LTM Price Performance
P/E 2017
$35,460 $32,361 $22,617 $17,864 $13,188 $9,004 $6,474 $4,176 $3,144 $998
31% 11% 27% NA 3% 33% 10% 3% (11%) 29%
22.2x 19.0x 22.3x 21.2x 25.1x 27.5x 21.8x 16.1x 31.2x 15.9x
$14,529
15%
22.2x
Market Cap.
LTM Price Performance
P/E 2017
$53,645 $20,553 $9,843 $2,456 $292 $12
46% 35% 43% (2%) (9%) (82%)
25.1x 23.2x 18.3x 26.4x NM NA
$14,467
5%
23.3x
9
SECTION II: Payments / Banking
10
PAYMENTS / BANKING Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 5/5/17 Networks Visa Inc. Mastercard Incorporated American Express Company PayPal Holdings, Inc. Discover Financial Services
$92.09 117.50 78.32 49.30 60.30
LTM Price Range Low High $73.25 86.65 57.15 34.00 50.32
$92.98 119.71 82.00 49.44 74.33
Equity Value $212,329 125,946 70,001 59,222 22,926
Net Debt $7,966 (2,444) 26,093 (8,928) 11,654
Enterprise Value $227,538 123,529 97,694 50,294 35,155 Mean Median
Merchant Processing Cielo S.A. First Data Corporation Global Payments Inc. Vantiv, 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 (1)
$7.35 16.00 86.07 63.85 57.46 4.07 60.11 19.78 49.89 16.50 3.42 13.65 4.18 2.15
$6.42 9.90 64.63 50.52 46.22 3.21 35.45 8.42 33.82 13.11 2.37 8.70 2.75 1.75
$9.92 16.67 86.62 66.24 58.84 4.16 60.44 20.42 65.60 18.60 3.83 14.65 4.97 3.25
$19,949 14,683 13,124 12,526 10,574 8,092 7,427 7,400 1,837 1,197 506 425 224 34
$2,018 18,104 3,417 3,075 2,797 1,689 (920) (546) (224) 592 (115) 123 (3) 9
$23,125 35,771 16,686 15,897 13,387 9,781 6,507 6,854 1,622 1,793 391 585 221 126 Mean Median
Money Transfer The Western Union Company Euronet Worldwide, Inc.
$19.39 84.71
$18.07 65.33
$22.70 86.35
$9,138 4,441
$2,160 (159)
$11,298 4,284 Mean Median
Closed Loop Alliance Data Systems Corporation FleetCor Technologies, Inc. Edenred SA WEX Inc.
$255.49 133.40 26.71 99.43
$185.02 121.52 17.25 80.67
$266.25 176.42 26.85 122.91
$14,276 12,307 6,195 4,265
$18,804 3,322 623 2,188
$33,080 15,629 6,891 6,461 Mean Median
Prepaid Blackhawk Network Holdings, Inc. Green Dot Corporation Net 1 UEPS Technologies, Inc.
$41.80 34.37 10.20
$28.88 20.79 8.37
$42.80 35.12 13.81
$2,355 1,757 587
$373 NA (198)
$2,732 NA 394 Mean Median
EV / Revenue CY 17E CY 18E
EV / EBITDA CY 17E CY 18E
Price / EPS CY 17E CY 18E
EPS Long Term Growth
PEG
Revenue Growth 17E/16A Y/Y MRQ
12.5x 10.2x 3.0x 4.0x 3.6x
11.3x 9.2x 2.8x 3.4x 3.4x
17.9x 17.8x NM 15.5x NM
16.0x 15.8x NM 13.2x NM
26.4x 27.2x 13.8x 27.8x 10.0x
22.9x 23.5x 12.5x 23.5x 9.0x
17.3% 16.4% 9.1% 17.5% 8.7%
1.5 1.7 1.5 1.6 1.2
14.2% 12.1% 9.5% 17.0% 11.4%
23.5% 11.8% (4.0%) NM (2.6%)
6.6x 4.0x
6.0x 3.4x
17.1x 17.8x
15.0x 15.8x
21.0x 26.4x
18.3x 22.9x
13.8% 16.4%
1.5 1.5
12.9% 12.1%
7.2% 4.6%
5.8x 3.0x 4.9x 7.6x 2.8x 6.0x 4.4x 4.0x 8.7x 4.5x 3.4x 0.8x 3.7x 1.9x
5.2x 2.9x 4.5x 6.9x 2.6x 5.5x 3.6x 3.2x 7.6x 4.4x 3.0x 0.7x 3.3x 1.8x
12.7x 11.9x 14.8x 15.9x 11.4x 14.8x 14.9x 55.2x 28.9x 9.6x 10.8x 13.5x 12.8x 38.1x
11.6x 11.3x 13.3x 14.3x 10.7x 13.1x 12.0x 31.6x 22.3x 9.4x 9.3x 10.7x 10.8x 27.6x
14.7x 10.5x 22.0x 19.5x 17.8x 23.2x 25.3x 93.7 66.4x 10.1x 15.8x NM 19.2x NM
13.2x 9.8x 19.0x 17.4x 16.4x 20.0x 20.3x 51.2 48.8x 9.6x 14.0x 65.0x 16.3x NM
11.9% 9.4% 14.7% 13.9% 11.3% 20.6% 26.6% 85.4% 24.4% 8.5% NM NM 25.0% NM
1.2 1.1 1.5 1.4 1.6 1.1 1.0 1.1 2.7 1.2 NM NM 0.8 NM
5.5% 3.8% 41.6% 25.2% 12.1% 34.5% 31.7% 34.9% 58.6% 2.6% 11.1% 18.5% 10.9% 17.3%
3.2% 49.8% 46.9% 13.4% NA 13.3% 30.1% 21.7% 89.8% 6.1% 3.2% 23.0% (9.4%) 48.8%
4.4x 4.2x
3.9x 3.5x
19.0x 14.1x
14.9x 11.8x
28.2x 19.4x
24.7x 17.4x
22.9% 14.7%
1.3 1.2
22.0% 17.9%
26.1% 21.7%
2.1x 2.0x
2.0x 1.8x
8.7x 10.7x
8.4x 9.3x
11.5x 18.7x
10.9x 16.2x
7.6% 14.0%
1.5 1.3
0.1% 8.9%
0.4% 8.1%
2.0x 2.0x
1.9x 1.9x
9.7x 9.7x
8.9x 8.9x
15.1x 15.1x
13.6x 13.6x
10.8% 10.8%
1.4 1.4
4.5% 4.5%
4.2% 4.2%
4.2x 7.1x 4.7x 5.4x
3.8x 6.4x 4.4x 4.9x
16.4x 13.5x 12.6x 13.4x
14.6x 12.0x 11.5x 11.7x
13.8x 16.0x 23.8x 18.7x
12.0x 14.2x 21.6x 16.2x
14.1% 16.6% 13.6% 15.0%
1.0 1.0 1.7 1.2
9.6% 20.6% 29.1% 17.4%
12.1% 25.6% 13.2% 41.5%
5.4x 5.1x
4.9x 4.7x
14.0x 13.5x
12.4x 11.8x
18.1x 17.4x
16.0x 15.2x
14.8% 14.5%
1.2 1.1
19.1% 19.0%
23.1% 19.4%
1.2x NA 0.6x
1.1x NA 0.6x
11.6x NA 2.5x
9.9x NA 2.5x
25.4x 17.9x 5.8x
21.0x 15.6x 5.5
15.2% 16.7% NM
1.7 1.1 NM
17.3% 14.5% 10.4%
11.1% 7.8% 9.8%
0.9x 0.9x
0.8x 0.8x
7.0x 7.0x
6.2x 6.2x
16.3x 17.9x
14.0x 15.6x
16.0% 16.0%
1.4 1.4
14.1% 14.5%
9.6% 9.8%
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM. 1) Convertible preferred equity assumed at 2x liquidation preference.
11
PAYMENTS / BANKING Public Company Valuations: Financial Metrics (Cont.) $MM, Except Per Share Data Stock Price 5/5/17 Integrated Payments Hardware / Technology Ingenico Group - GCS NCR Corporation VeriFone Systems, Inc. Cardtronics plc Everi Holdings Inc. PAR Technology Corporation
$95.72 43.20 18.68 36.06 6.66 8.46
LTM Price Range Low High $75.04 25.20 14.94 35.63 1.13 4.30
$121.94 49.90 28.24 56.00 6.66 8.63
Equity Value $5,875 5,236 2,085 1,646 440 133
Net Debt
Enterprise Value
$121 2,927 757 956 994 (8)
$6,001 9,417 2,880 2,602 1,434 125 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 Q2 Holdings, Inc. Bottomline Technologies (de), Inc. On Deck Capital, Inc.(1) Elevate Credit, Inc. Performant Financial Corporation
$126.14 83.05 120.00 98.15 88.66 107.53 41.90 23.83 5.75 38.40 25.18 4.64 7.98 2.27
$99.25 68.03 92.81 79.00 48.10 74.11 31.81 15.11 3.44 21.81 18.48 3.64 6.50 1.50
$128.45 84.97 122.91 98.73 89.57 112.77 42.20 23.87 7.14 39.70 28.35 6.46 8.86 4.07
$32,265 27,455 25,485 7,619 6,181 3,663 2,927 2,813 2,322 1,572 952 334 330 115
$513 8,800 4,330 (14) 169 (393) 1,467 603 (534) (82) 39 743 414 21
$32,778 36,367 29,815 7,605 6,350 3,270 5,440 3,416 1,788 1,490 991 1,084 744 135 Mean Median
Information Processors / Credit Bureaus Experian plc Equifax Inc. Fair Isaac Corporation Acxiom Corporation Intersections Inc.
$21.94 138.81 137.91 28.87 5.19
$15.86 110.87 103.50 19.11 1.70
$21.96 139.89 139.00 30.40 5.33
$20,377 16,686 4,270 2,263 126
$3,161 2,546 510 99 3
$23,552 19,296 4,780 2,362 129 Mean Median
EV / Revenue CY 17E CY 18E
EV / EBITDA CY 17E CY 18E
Price / EPS CY 17E CY 18E
EPS Long Term Growth
PEG
Revenue Growth 17E/16A Y/Y MRQ
2.2x 1.4x 1.5x 1.8x 1.6x NA
2.0x 1.4x 1.4x 1.8x 1.5x NA
10.7x 8.0x 9.5x 7.9x 6.9x NA
9.7x 7.7x 8.4x 7.8x 6.7x NA
18.5x 12.8x 12.5x 12.7x 7.0x NA
16.4x 11.8x 11.7x 11.9x 6.2x NA
10.7% NM 15.0% 14.0% 20.0% NM
1.7 NM 0.8 0.9 0.4 NA
12.7% 2.1% NA 15.7% 6.2% NA
0.5% 2.4% (11.6%) 17.9% 6.4% 6.0%
1.7x 1.6x
1.6x 1.5x
8.6x 8.0x
8.1x 7.8x
12.7x 12.7x
11.6x 11.8x
14.9% 14.5%
1.0 0.9
9.2% 9.5%
3.6% 4.2%
6.2x 3.8x 5.2x 5.2x 9.1x 7.5x 5.0x 3.4x 3.1x 7.7x 2.8x 2.8x 1.1x 1.0x
5.8x 3.7x 4.9x 4.9x 8.2x 6.1x 4.6x 3.2x 2.5x 6.1x 2.6x 2.4x 0.9x 0.9x
16.0x 11.9x 14.5x 14.7x 26.0x 22.5x 10.6x 13.9x 35.8x NM 12.4x NM 7.5x 11.3x
14.5x 11.0x 13.6x 13.7x 22.5x 17.0x 9.5x 12.8x 14.3x 73.3x 11.2x 28.8x 4.7x 8.3x
27.9x 19.5x 23.4x 30.3x 36.8x 57.7x 30.8x 52.2x NM NM 25.6x NM 25.2 NA
25.4x 17.2x 20.9x 27.5x 32.1x 44.3x 26.3x 38.5x 26.9x NM 21.4x 17.5x 6.4x 32.4x
15.4% 11.8% 11.5% 11.0% 16.0% 25.0% 14.1% 11.0% NM 32.0% 20.0% 84.6% NA 20.0%
1.8 1.7 2.0 2.8 2.3 2.3 2.2 4.7 NM NM 1.3 NM NA NA
8.2% 2.5% 4.7% 4.9% 9.9% 21.8% 5.6% 1.3% 15.2% 29.2% 4.3% 31.6% NA (3.7%)
10.1% 3.4% 4.7% 6.2% 10.4% 26.3% 6.7% 2.4% (17.4%) 31.9% (0.2%) 20.9% 17.0% (17.6%)
4.6x 4.4x
4.0x 4.1x
16.4x 14.2x
18.2x 13.6x
32.9x 29.1x
25.9x 26.3x
22.7% 15.7%
2.3 2.2
10.4% 5.6%
7.5% 6.4%
4.9x 5.7x 5.1x 2.6x NA
4.7x 5.3x 4.8x 2.3x NA
14.3x 15.4x 18.2x 13.1x NA
13.4x 14.1x 17.4x 11.1x NA
23.3x 22.9x 26.8x 38.3x NA
21.1x 20.7x 22.3x 29.3x NA
10.0% 11.3% 16.0% 18.0% NM
2.3 2.0 1.7 2.1 NA
NA 8.3% 4.8% 4.3% NA
2.6% 14.3% 10.5% 1.0% (11.0%)
4.6x 5.0x
4.3x 4.7x
15.3x 14.8x
14.0x 13.8x
27.8x 25.0x
23.3x 21.7x
13.8% 13.7%
2.0 2.1
5.8% 4.8%
3.5% 2.6%
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM. 1) Revenue growth rates based on gross revenues before provision for loan losses and fundraising costs.
12
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date
Target Subsector
Enterprise Value
EV / LTM Revenue
Cross-Border Payments
$675
NA
Paymetric, Inc.
Payment Processing
NA
NA
Urban Fulfillment Services, LLC
Mortgage Processing
$30
0.6x
Ecommerce Payments
NA
NA
Accounting Software
NA
NA
Financial Software
NA
NA
Clearing
$27
NA
Coupons / Rewards
$457
1.5x
Banking Software
NA
NA
Sourcing Software
$45
NA
Merchant Acquiring
$32
NA
Ecommerce Payments
NA
NA
Digital Banking
NA
NA
Payment Processing
NA
NA
VAR
$38
6.2x
Payment Processing
NA
NA
Card Processing
$220
NA
Anti-Fraud
NA
NA
Gateway
$25
NA
Authentication
NA
NA
Acquirer
Target
5/1/17
FleetCor Technologies, Inc.
Cambridge Global Payments
4/25/17
Vantiv, Inc.
4/24/17
HCL Technologies Limited
4/19/17
Ant Financial Services Group
4/19/17
Asset Vantage Inc.
HelloPay Singapore Pte. Ltd (nka:Alipay Singapore) Financial Navigator, Inc.
4/12/17
Stone Point Capital
Bankruptcy Management Solutions
Network For Electronic Transfers (Singapore) Pte Ltd. Harland Clarke Holdings Corp.
Banking Computer Services Private Limited and BCS Information System RetailMeNot, Inc.
4/11/17 4/10/17
Fidelity National Information Services, Inc., Ambit Private Banking Business Trade Extensions Tradeext AB
4/10/17
New Access SA
4/7/17
Coupa Software Incorporated
4/5/17
Nets Oy
4/5/17
Bain Capital & Advent International
OP Financial Group, Merchant Acquiring Business Ratepay
4/4/17
BNP Paribas SA
Compte Nickel
4/3/17
CU Cooperative Systems, Inc.
The Members Group LLC
4/3/17
CardConnect Corp.
MertzCo, Inc.
4/3/17
Avangate Inc.
2Checkout.com, Inc.
3/31/17
M1 Limited
Areeba s.a.l.
3/29/17
Mastercard Incorporated
NuData Security Inc.
3/28/17
Wirecard AG
MyGate Communications (Pty) Ltd
3/27/17
Nxt-ID, Inc.
FitPay, Inc.
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
13
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
Target Subsector
Enterprise Value
EV / LTM Revenue
3/21/17
Visma AS
Bluegarden Holding A/S
Payroll Software
NA
NA
3/16/17
First Data Corporation
Acculynk, Inc.
Ecommerce Payments
NA
NA
3/14/17
Genpact Limited
RAGE Frameworks, Inc.
Digital Transformation
NA
NA
3/13/17
Wirecard AG
Merchant Acquiring
NA
NA
3/13/17
Vista Equity
Citibank's Merchant Acquiring Services in Asia Pacific DH Corporation
Banking Technology
$3,459
2.8x
3/13/17
Payment Data Systems, Inc.
Singular Payments, LLC
Vertical Payments
NA
NA
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
Tilt.com, Inc.
Crowd Funding
NA
NA
2/23/17
Argus Information & Advisory Services, LLC Airbnb, Inc.
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 Ltd.
Satago Ltd.
CF Management Software
NA
NA
2/14/17
Temenos Solutions Australia Pty Ltd
Rubik Financial Limited
Financial Software
$59
1.9x
2/14/17
PayPal Holdings, Inc.
TIO Networks Corp.
Payment Processing
$185
2.6x
2/8/17
Deluxe Corporation
RDM Corporation
Banking Software
$67
3.2x
2/27/17
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
14
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
2/8/17
Realtime Electronic Payments
Sigma Payment Solutions Inc.
2/6/17
Klarna AB
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.
1/31/17
Zoopla
Hometrack
1/30/17
Ingenico Group - GCS
TechProcess Payment Services Limited
1/30/17
Green Dot Corporation
UniRush, LLC
1/27/17
Ebates, Inc.
Cartera Commerce Inc.
Target Subsector
Enterprise Value
EV / LTM Revenue
Loan Servicing
NA
NA
Ecommerce Payments
$64
NA
NA
NA
NA
NA
ATMS
NA
NA
Real Estate Tech
$150
NA
Electronic Payments
NA
NA
Prepaid
$161
NA
Loyalty / Rewards
NA
Accounting Software / Healthcare Payments Mobile Banking
NA (1)
1/26/17
Alipay (UK) Limited
MoneyGram International, Inc.
Money Transfer
$1,936
1.2x
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
International Payments / FX
NA
NA
Ecommerce Payments
NA
NA
Loyalty / Rewards
NA
NA
1/18/17
Clearent, LLC
1/18/17
AnaCap Financial Partners LLP
Payment Alliance International, Merchant Service Division Heidelberger Payment GmbH
1/18/17
Augeo Affinity Marketing Inc.
Edo Interactive Inc.
1/17/17
Clarus Merchant Services
North American Merchant Services, Inc.
ISO
NA
NA
1/17/17
Clarus Merchant Services
BC Technologies
ISO
NA
NA
1/16/17
Daimler Financial Services AG
PayCash Europe S.A.
Electronic Payments
NA
NA
1/13/17
Advent International Corporation; Bain Capital Investors, LLC
ConCardis GmbH
Merchant Processing
NA
NA
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM. 1) Reflects updated merger consideration of $18 per share on April 15, 2017
15
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
1/11/17
Intellitix Holdings Limited
Loc Pay Systems B.V.
1/10/17
Coupa Software Incorporated
Spend360 International Ltd
Target Subsector
Enterprise Value
EV / LTM Revenue
Closed Loop
NA
NA
Financial Software
NA
NA
Merchant Acquiring
NA
NA
Crowdfunding
NA
NA
Online Lending / Lead Gen
NA
NA
1/10/17
Clarus Merchant Services
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.
1/5/17
IRIS Software Group Limited
PS Financials Ltd
Accounting Software
NA
NA
1/4/17
EVO Payments International, LLC
Sterling Payment Technologies, Inc.
Merchant Processing
NA
NA
BBVA Bancomer, S.A.
Openpay SAPI de C.V.
Ecommerce Payments
NA
NA
Mobile Payments
$32
NA
Fraud Protection
NA
NA
Merchant Acquiriing
$37
1.6x
Fraud Prevention
NA
NA
Online Consumer Lending
NA
NA
eCommerce Payments
NA
NA
Merchant Services Portfolio
$8
NA
Money Transfer
NA
NA
Anti-Fraud
$2,362
3.6x
Lead Gen
$130
NA
Online Lending
NA
NA
Merchant Services
NA
NA
12/23/16 12/23/16
Volkswagen Financial Services AG
12/19/16
Akamai Technologies, Inc.
PayByPhone Technologies And PayByPhone And Mobile Payment Cyberfend, Inc.
12/19/16
SENJO GROUP Pte. Ltd.
Kalixa Payments Group Limited
12/6/16
American Express Company
InAuth, Inc.
12/1/16
Flexpoint Ford, LLC
Purchasing Power, LLC
12/1/16
Visa Inc.
CardinalCommerce Corporation
11/29/16
BluePay Canada ULC
VersaPay, Merchant Services Portfolio
11/23/16
Klarna AB
Cookies Labs GmbH
11/20/16
Symantec Corporation
LifeLock, Inc.
11/16/16
LendingTree, LLC
Iron Horse Holdings, LLC
11/15/16
Versara Lending, LLC
Peerform, Inc.
11/14/16
Finical, Inc.
Safeguard Bankcard, LLC
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
16
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Target Subsector
Enterprise Value
EV / LTM Revenue
Collections
$163
2.6x
Online Lending
$54
NA
Merchant Acquiring
$425
NA
Healthcare Payments
NA
NA
Easy Solutions Inc.
Fraud Detection
NA
NA
Broadridge Financial Solutions, Inc.
M&O Systems, Inc.
Accounting Software
$25
NA
11/1/16
Hansen Technologies Ltd
DST Billing Solutions Limited
Billing Software
NA
NA
10/26/16
Groupon, Inc.
LivingSocial, Inc.
Ecommerce
NA
NA
Online Lending
NA
NA
Credit Cards
NA
NA
Acquirer
Target
11/10/16
Intrum Justitia AB
1st Credit Limited
11/10/16
MetaBank
Specialty Consumer Services, LP
11/10/16
NPC Group, Inc.
Moneris Solutions, Inc.
11/7/16
GTCR, LLC
RevSpring, Inc.
11/4/16
BC Partners; Medina Capital
11/4/16
10/11/16
Lendingkart Technologies Private Limited CVC Capital Partners Limited; Cinven
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
DirectCash Payments Inc.
ATMS
$453
2.1x
Merchant Processing
NA
NA
Billing Software
NA
NA
10/18/16
Finectar Technologies Pvt. Ltd. NewDay Cards Ltd.
10/3/16
Gresham Computing plc (nka:Gresham Technologies plc) Cardtronics Holdings Limited
9/15/16
Payroc LLC
The iTransact Group, LLC
9/14/16
Amdocs Limited
Vindicia, Inc
10/4/16
C24 Technologies Ltd.
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
17
PAYMENTS / BANKING Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
9/7/16
iZettle AB
Intelligent Point Of Sale (Sales) Limited
Target Subsector
Enterprise Value
EV / LTM Revenue
Point of Sales
NA
NA
Regulatory DataCorp, Inc.
Compliance/Risk
NA
NA
Bitnet Technologies
Digital Currency
NA
NA
Closed Loop
NA
NA
Check Processing
NA
NA
Payment Processing
$559
NA
Prepaid
NA
NA
Digital Banking
NA
NA
Mobile Payments
$1,225
5.1x
Gift Cards
NA
NA
8/18/16
Vista Equity Partners LLC; Vista Equity Fund III, L.P. Rakuten, Inc.
8/4/16
FleetCor Technologies, Inc.
Travelcard Nederland B.V.
8/4/16
Battery Ventures
Insert Mobile Technologies, Ltd.
9/6/16
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
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
Ingenico Group - GCS
Nera Payment Solutions Pte Ltd.
POS
$64
NA
5/18/16
Fitbit, Inc.
Coin, Inc., Wearable Payments Assets
Wearables / IOT
NA
NA
7/21/16
VocaLink Holdings Limited Transaction Processing Products, Inc.
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
18
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date
Target
Series
Amount
Investors
5/4/17
Signifyd
Series C
$56
American Express, Bain Capital Ventures, Menlo Ventures
5/4/17
MPP Global
Series B
$15
Albion Ventures, Grafton Capital
5/3/17
Nav
Series B
$13
5/2/17
Aicai
Series C
$32
Clocktower Ventures, CreditEase Fintech Investment Fund, Goldman Sachs, Point72 Ventures Zhongshunyi Financial
5/2/17
ServiceChannel
NA
$54
Acce
5/1/17
Airwallex
Series A
$13
Gobi Ventures, MasterCard, Sequoia China, Tencent
4/29/17
Satispay
NA
$15
Iccrea Banca
4/26/17
Ivalua
NA
$70
KKR
4/26/17
Robinhood
Series C
$110
DST Global, Index Ventures, NEA, Ribbit Capital
4/24/17
Token
Series A
$16
EQT Ventures, Octopus Ventures, OP Financial Group
4/19/17
IceKredit
Series A
$16
China Creation Ventures, Lingfeng Capital
4/18/17
Factom
Series A
$8
Harvest Equity, Peeli Ventures
4/13/17
College Avenue Student Loans
NA
$30
Comcast Ventures, Leading Edge Ventures
4/11/17
Mswipe Technologies
Series D
$21
DSG Consumer Partners, Falcon Edge Capital, Fosun Capital
4/10/17
MintQuantum
Series A
$15
Undisclosed
4/6/27
Upgrade
Series A
$60
4/6/17
WeCash
Series C
$80
4/6/17
Flow
Series A
$16
Union Square Ventures, Credit Ease, FirstMark Capital, Noah Holdings, Ribbit Capital, Sands Capital Ventures China Merchants Innovation Investment Management, Forebright Capital Management, SIG Bain Capital Ventures, Fung Capital, Forerunner Ventures
4/5/17
Jucaicat
Series A
$15
TIZA
4/5/17
Savedroid
NA
$22
Rhineland-Palatinate, Angel Investors
Notes: Source: CapitalIQ and Pitchbook.
Target Subsector Ecommerce Fraud Protection Ecommerce Credit Scoring Student Logistics / Payments Vertical Payments Cross-Border Payments Mobile Payments Spend Management Software Online Brokerage Banking Software Underwriting Technology Blockchain Student Loan Marketplace Mobile Payments Online Lending Online Lending Credit Scoring Cross-Border Payments Online Lending PFM / Digital Banking
19
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
3/31/17
Fiilament
3/30/17
Yongqianbao
Investors
Target Subsector
$15
Bullpen Capital, Verizon Ventures
Blockchain
$67
Golden Brick Capital Management, CICC Alpha
Series
Amount
Series B NA
3/29/17
ShapeShift AG
Series A
$10
3/27/17
cloudvirga
Series B
$15
Access Venture Partners, Earlybird Venture Capital, Pantera Capital, Lakestar, Blockchain Capital Incenter
3/27/17
Creamfinance
Series B
$22
Capitec Bank Holdings Limited
Online Lending Digital Currency Mortgage POS Online Lending
3/23/17
Dadao Financial
Series B
$29
3/23/17
Clarity Money
Series B
$11
China Renaissance Private Equity Fund, PAG, Sequoia Capital China Citi Ventures, RRE Ventures
3/23/17
Qtum
NA
$15
Undisclosed
3/22/17
figo
NA
$12
Berliner Volksbank Ventures, DB1 Ventures
3/22/17
Avaloq
NA
$300
Warburg Pincus
Banking Software
3/20/17
Nested
NA
$10
GFC, Passion Capital
Real Estate Tech
3/15/17
Flow
Series A
$13
Bain Capital Ventures
3/14/17
solarisBank
NA
$28
Arvato Financial Solutions, SBI Group
3/13/17
Canopy
NA
$20
Epic Ventures, Deep Fork Capital, NEA, Pelion Venture Partners
3/13/17
Viva Republica
Series C
$48
3/9/17
Currencycloud
Series D
$25
3/8/17
Veem
Series B
$24
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.
3/7/17
Qapital
Series A
$12
Anthemis, Northzone, Rocketship VC
3/6/17
Atom Bank
NA
$102
3/3/17
UpStart
NA
$33
Notes: Source: CapitalIQ and Pitchbook.
BBVA, Toscafund Asset Management, Woodford Investment Management First Round Capital, Khosla Ventures, Rakuten, Third Point Ventures
Real Estate Tech PFM Blockchain Bank API
Ecommerce Digital Banking Accounting / Tax Software Money Transfer Cross-Border Payments B2B Payments PFM Digital Banking Online Lending
20
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
Investors
Target Subsector
Series
Amount
Series A
$12
Information Capital, OTEAF
NA
$31
CFFI Ventures, PPF Group
Series F
$500
GPI Capital, Silver Lake, Softbank Group
Online Lending
NA
$16
Home Credit Group
Bank Software
Series B
$30
IVP, Ribbit Capital
Credit Scoring
3/2/17
Sensibill
3/1/17
Clearbank
2/24/17
Social Finance
2/23/17
Nymbus
2/23/17
Tala
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
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
2/9/17
Better Mortgage Inc.
Series B
$15
2/8/17
Exactuals LLC
Series A
$10
31Ventures, Battery Ventures, Carmel Ventures, Liberty Israel Venture Fund, OurCrowd, Stax Goldman Sachs, Kleiner Perkins Caufield & Byers, Pine Brook Partners City National Bank, TTV Capital
2/2/17
Paytm E-Commerce
NA
$200
Alibaba, SAIF Partners
2/22/17
Creditas
2/20/17
True Balance
2/20/17
Kakao Pay
2/13/17
Series B
$19
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
$30
Credit China FinTech Holdings
Notes: Source: CapitalIQ and Pitchbook.
Expense Mgmt Software Banking Software
Offers / Marketing Online Lending Mobile Balance Management Mobile Payments Data / Analytics Mortgage Origination Vertical Payments eCommerce eCommerce Real Estate Tech Data / Analytics Cash Management Blockchain
21
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
Series
Amount
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
Investors
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
Target Subsector eCommerce Payments Real Estate Data / Analytics Online Lending Lead Gen POS Online Lending Crowdfunding
1/9/17
Activehours Inc.
NA
$22
1/9/17
FreeCharge
NA
$57
Felices Ventures, March Capital Partners, Matrix Management Corp., Ribbit Capital LP SnapDeal
1/5/17
CloudCraze LLC
Series B
$20
Insight Venture Partners, Salesforce Ventures
1/5/17
Payfone
Series E
$24
1/4/17
Credible Labs
NA
$10
American Express Ventures, BlueCross BlueShield Venture Partners, Relay Ventures, Verizon Ventures Undisclosed
1/4/17
Magento Commerce
NA
$250
Hillhouse Capital Management
1/3/17
Monese
Series A
$10
Exponential Ventures, Korea Investment Partners, STE Capital
Digital Banking
1/3/17
Tandem Bank
NA
$43
House of Fraser
Digital Banking
Series A
$20
Oak View Group, Shamrock Capital Advisors
Online Lending Mobile Payments B2B Commerce Fraud Protection Online Lending eCommerce
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
$80
Digital Sky Technologies, Founders Fund, QED Investors, Sequoia Capital, Tiger Global Management
12/7/16
Nubank
Notes: Source: CapitalIQ and Pitchbook.
Series D
POS
Loyalty / Rewards Online Banking
22
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
Series
Amount
Investors
12/5/16
MoneyLion Inc.
Series A
$11
11/28/16
Five Degrees Solutions
Series A
$13
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
10/25/16
Lendio Inc.
Series D
$20
10/24/16
AEVI
NA
$11
Bullpen Capital, Galileo Partners, JMI Management Inc., Mithril Capital Management, Salesforce Ventures APAGM Services, Goldman Sachs Merchant Banking Division, Jarnac Capital Management, Rohatton 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
$11
Xavier Niel, Other Investors
Notes: Source: CapitalIQ and Pitchbook.
Target Subsector Online Lending Banking Software eCommerce Payments Rating Agency POS Trading Platform Broker Software Electronic Transaction Software Financial Software CRM / Invoicing Software Banking Software Crowdfunding Digital Currency Online Lending POS Merchant Acquiring ISO / Gateway Expense Software Cross-Border Payments Banking Software
23
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
Series
Amount
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 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
NA
$88
9/26/16
Juzhen Financials
Series A
$23
Gulf Islamic Investments, Iconiq Capital LLC, K1 Investment Management LLC, Kuwait Investment Authority Fenbushi Capital, Wanxiang
9/22/16
Wave Accounting Inc.
NA
$11
BDC Capital, CRV, Social Capital, HarbourVest Partners
9/22/16
51Credit
Series C
$310
9/22/16
Avalara Inc.
Series D
$96
9/21/16
FirstP2P
Series C
$70
Tiantu Capital, Xinhu Zhongbao, HgCapital, Shenzhen Qianhe Capital Management Sageview Capital, Technology Crossover Ventures, Warburg Pincus CCB International, San Shan Capital Partners
Accounting Software Online Lending Money Transfer Consumer Finance
Quote-To-Cash Blockchain Accounting Software 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
$14
SG VC
AP Automation
Notes: Source: CapitalIQ and Pitchbook.
Business Lending Digital Currencies
24
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
9/13/16
Uno Home Loans
9/9/16
Juvo
Series
Amount
Investors
Target Subsector
NA
$17
Westpac
Mortage Software
Series A
$14
Freestyle Capital, Seed-Resolute, Wing Venture Capital
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
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
7/28/16
Paidy
Series B
$15
Arbor Ventures, Eight Roads, Itochu Corp., SBI Holdings, SIG Asia
7/27/16
Gongzi Qianbao
NA
$30
SBCVC
7/25/16
QwikCilver Solutions Private Limited
NA
$10
Accel, Amazon, Helion Venture Partners, Sistema Asia Fund
8/22/16
LendUp
8/17/16
7/20/16
Deposit Solutions
NA
$17
7/20/16
Omise
Series B
$18
7/19/16
CommonBond, Inc.
Series C
$30
7/19/16
Deal4Loans
NA
$15
Notes: Source: CapitalIQ and Pitchbook.
e. Ventures, Finlab, Greycroft Partners, Peter Thiel, Valar Ventures 500 Startups, Ascend Money, Golden Gate Ventures, SBI Investment, Sinar Mas Digital Ventures August Capital, NB Private Equity Partners, Nyca Partners, Social Capital, Tribeca Venture Partners, Victory Park Capital Franklin Templeton Group
Mobile Credit Analytics Financial Education Mobile Payments Mobile Commerce SMB Lending Mobile Payments Online Lending Online Lending Mortgage Technology Banking Software POS Online Lending eCommerce Payments Payroll Gift Cards Open Banking Platform Gateway Online Lending Online Lending
25
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
Series
Amount
Investors
NA
$10
Undisclosed
7/13/16
i3 Verticals
7/11/16
WeSwap.com
Series B
$10
Ascot Capital Partners, EC 1 Capital, IW Capital
7/7/16
Coinbase, Inc.
Series D
$11
Mistubishi Capital, Sozo Ventures, Bank of Tokyo
7/7/16
Payment Card Technologies
NA
$13
Undisclosed
7/4/16
NeoGrowth Credit
NA
$35
6/28/16
BizFi
NA
$20
6/28/16
PredictSpring
Series A
$11
6/28/16
Lendingkart. ltd.
Series B
$32
6/27/16
D3 Banking
Series E
$16
6/23/16
Circle Internet Financial
6/22/16
Pearl Capital
Series D
$60
NA
$20
Aspada, IFMR Investments, IIFL Private Wealth Management, Khosla Impact, Omidyar Network, Quona Capital Metropolitan Equity Partners Beanstalk Ventures, Benvolio Group, Felicis Ventures, Novel TMT Ventures Bertelsmann India, Darrin Capital, India Quotient, Mayfield, Saama Capital West Partners Accel, Baidu, Breyer Capital, China Everbright, CreditEase, General Catalyst Partners, IDG Capital Partners Arena Investors
Target Subsector Merchant Processing Multi-Currency Prepaid Bitcoin Debit Online Lending Online Lending Mobile Commerce Online Lending Online Banking Money Transfer SMB Finance
6/21/16
Number26 GmbH
Series B
$40
6/19/16
Plaid Technologies
Series B
$44
Battery Ventures, Earlybird Venture Capital, Horizons Ventures, Redalpine Venture Partners, Valar Ventures NEA, Goldman Sachs
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
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
$11
Cendana Capital, Financial Solutions Lab, Mucker Capital, OCA Ventures, Partech Ventures, Securian, Tekton Ventures
6/10/16
Ascend Consumer Finance
Notes: Source: CapitalIQ and Pitchbook.
Series A
Mobile Banking Bank APIs
eCommerce Payments Online Lending Mobile Payments Mortgage Software Online Lending
26
PAYMENTS / BANKING Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
6/6/16
zipMoney
6/2/16
Vyze
Series
Amount
Investors
PIPE
$15
Undisclosed
Series B
$13
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
Notes: Source: CapitalIQ and Pitchbook.
Series E
$30
NA
$35
American Express, General Catalyst Partners, GGV Capital, Revolution Growth, SoftBank Capital, Split Rock Partners Updata Partners
Target Subsector Online Lending Online Lending Personal Financial Management Online Lending Money Transfer Digital Wallet Credit Cards Online Lending Merchant Processing POS eCommerce Loyalty / Rewards
27
SECTION III: Securities / Capital Markets / Data & Analytics
28
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 5/5/17 Exchanges - Americas CME Group Inc. Intercontinental Exchange, Inc. BM&FBOVESPA S.A. Nasdaq, Inc. CBOE Holdings, Inc. TMX Group Limited Bolsa Mexicana de Valores, S.A.B. de C.V.
$118.76 60.46 6.13 67.91 83.76 57.79 1.78
LTM Price Range Low High
Equity Value
$92.14 48.15 4.71 61.19 61.58 36.63 1.38
$40,354 35,796 12,452 11,324 9,380 3,194 1,055
$127.60 61.98 6.54 72.52 84.63 58.31 1.88
Net Debt $857 5,686 410 3,015 1,292 492 (118)
Enterprise Value $41,210 41,551 12,864 14,339 10,685 3,686 944 Mean Median
Exchanges - Asia Hong Kong Exchanges and Clearing Limited ASX Limited Singapore Exchange Limited Bursa Malaysia Berhad
$24.32 38.12 5.29 2.31
$22.48 31.86 4.96 1.89
$27.39 38.89 5.59 2.39
$29,695 7,373 5,666 1,237
($1,826) (734) (529) (115)
$27,885 6,640 5,136 1,125 Mean Median
Exchanges - Europe Deutsche Börse Aktiengesellschaft London Stock Exchange Group plc Bolsas y Mercados Españoles JSE Limited GPW Hellenic Exchanges - Athens Stock Exch.
$101.68 43.93 35.40 10.58 11.92 5.69
$72.66 29.27 22.76 9.03 8.11 4.23
$102.33 44.10 36.93 13.94 12.77 6.11
$18,995 15,317 2,941 905 500 344
$649 (1,265) (362) (153) (31) (109)
$19,809 14,680 2,580 752 470 235 Mean Median
EV / Revenue CY 17E CY 18E
EV / EBITDA CY 17E CY 18E
Price / EPS CY 17E CY 18E
EPS Long Term Growth
PEG
Revenue Growth 17E/16A Y/Y MRQ
11.0x 8.9x 16.2x 6.0x 10.1x 6.6x 5.9x
10.4x 8.5x 12.3x 5.7x 9.0x 6.4x 5.5x
15.3x 14.0x 19.1x 11.8x 16.7x 12.3x 10.8x
14.3x 13.1x 17.1x 11.1x 14.1x 11.9x 10.2x
24.4x 20.1x 16.3x 16.5x 26.8x 16.3x 18.7x
22.6x 17.9x 17.1x 15.2x 22.9x 15.6x 17.5x
12.1% 13.7% 15.8% 9.8% 31.4% NM 11.1%
2.0 1.5 1.0 1.7 0.9 NM 1.7
4.1% 3.5% 11.1% 14.6% 60.7% (6.5%) 16.7%
(0.5%) 0.9% 39.7% 7.3% 119.4% 13.4% 5.1%
9.2x 8.9x
8.3x 8.5x
14.3x 14.0x
13.1x 13.1x
19.9x 18.7x
18.4x 17.5x
15.7% 12.9%
1.5 1.6
14.9% 11.1%
26.5% 7.3%
17.1x 11.3x 8.6x 8.9x
15.7x 10.7x 8.1x 8.6x
24.2x 14.8x 14.7x 15.1x
22.1x 13.9x 13.2x 14.5x
33.4x 22.2x 21.9x 24.2x
30.2x 21.2x 19.2x 23.2x
2.3% 4.7% 3.1% 4.5%
14.6 4.7 7.1 5.4
14.0% (11.5%) 8.6% 13.4%
(4.4%) 1.5% (5.2%) (6.6%)
11.5x 10.1x
10.8x 9.7x
17.2x 14.9x
15.9x 14.2x
25.4x 23.2x
23.5x 22.2x
3.6% 3.8%
8.0 6.2
6.1% 11.0%
(3.7%) (4.8%)
7.1x 6.5x 7.2x 4.7x 5.8x 7.3x
6.6x 6.1x 7.3x 4.1x 5.7x 5.7x
12.2x 12.6x 10.9x 12.3x 10.1x 20.4x
11.3x 11.4x 11.1x 9.9x 9.6x 11.8x
19.1x 23.0x 17.4x 17.1x 15.6x 33.1x
17.0x 20.4x 17.5x 14.1x 14.3x 29.2x
11.5% 15.5% NM 4.6% NM 10.6%
1.7 1.5 NM 3.7 NM 3.1
(6.3%) 11.0% 4.8% (7.7%) 8.4% 21.8%
(3.4%) 2.4% (6.5%) 16.0% 5.6% (50.1%)
6.4x 6.8x
5.9x 5.9x
13.1x 12.2x
10.9x 11.2x
20.9x 18.3x
18.7x 17.3x
10.5% 11.0%
2.5 2.4
5.3% 6.6%
(6.0%) (0.5%)
(1)
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM.
29
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Public Company Valuations: Financial Metrics (Cont.) $MM, Except Per Share Data Stock Price 5/5/17 Investment Services, Software, & Technology Broadridge Financial Solutions, Inc. SEI Investments Co. SS&C Technologies Holdings, Inc. DST Systems, Inc. Financial Engines, Inc. Envestnet, Inc.(1)
$68.91 51.41 37.40 123.09 40.00 35.50
LTM Price Range Low High $58.66 42.12 26.15 94.52 23.56 27.59
$71.74 52.60 37.97 128.66 45.75 41.47
Equity Value $8,150 8,159 7,630 3,877 2,515 1,549
Net Debt
Enterprise Value
$970 (661) 2,336 470 (138) 238
$9,121 7,498 9,966 4,348 2,377 1,787 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.
$137.55 44.83 118.23 43.73 79.76 99.54 164.07 113.17 73.24 11.15
$97.65 38.23 87.30 32.78 75.60 71.51 147.83 100.46 67.74 6.91
$138.05 46.00 119.99 44.00 87.40 109.29 183.64 141.57 85.49 11.95
$35,460 32,361 22,617 17,864 13,188 9,004 6,474 4,176 3,144 998
$1,154 6,489 1,813 3,574 2,129 1,379 180 1,264 (83) 113
$36,614 38,850 24,431 21,438 15,317 10,383 6,654 5,440 3,062 1,111 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.
$40.13 38.96 35.80 36.13 6.12 1.95
$23.83 26.37 21.52 31.97 4.54 1.45
$43.65 47.41 38.61 40.38 8.75 12.16
$53,645 20,553 9,843 2,456 292 12
$0 1,765 2,612 4,005 (110) 312
$53,645 22,318 12,455 6,461 182 324 Mean Median
EV / Revenue CY 17E CY 18E
EV / EBITDA CY 17E CY 18E
Price / EPS CY 17E CY 18E
EPS Long Term Growth
PEG
Revenue Growth 17E/16A Y/Y MRQ
2.2x 5.1x 5.9x 2.2x 4.9x 2.7x
2.1x 4.7x 5.6x 1.9x 4.4x 2.4x
11.8x 13.6x 14.4x 11.4x 15.0x 14.3x
11.3x 11.9x 13.1x 9.6x 12.9x 11.5x
20.9x 22.9x 19.3x 18.7x 29.5x 27.8x
18.4x 19.8x 17.2x 16.3x 26.0x 22.0x
NM 13.5% 16.0% 10.0% 19.3% 20.0%
NM 1.7 1.2 1.9 1.5 1.4
20.5% 5.8% 13.2% 29.2% 14.2% 14.0%
39.7% 7.7% 25.8% 6.5% 23.9% 31.3%
3.8x 3.8x
3.5x 3.4x
13.4x 13.9x
11.7x 11.7x
23.2x 21.9x
19.9x 19.1x
15.8% 16.0%
1.5 1.5
16.2% 14.1%
22.5% 24.9%
6.3x 3.4x 6.4x 6.1x 7.3x 8.3x 5.3x 3.1x 3.6x 2.2x
6.0x 3.3x 6.1x 5.8x 6.9x 7.7x 4.9x 3.0x 3.4x 2.0x
13.5x 11.6x 13.7x 15.4x 14.8x 16.4x 15.4x 11.0x 13.1x 8.9x
12.6x 11.1x 13.1x 14.2x 13.8x 14.8x 14.1x 10.4x 11.7x 7.8x
22.2x 19.0x 22.3x 21.2x 25.1x 27.5x 21.8x 16.1x 31.2x 15.9x
20.1x 17.6x 20.5x 18.3x 22.6x 23.7x 20.0x 15.4x 25.8x 13.6x
13.1% 8.0% 10.2% 14.0% 10.6% 14.3% 10.7% 8.0% 12.0% 15.0%
1.7 2.4 2.2 1.5 2.4 1.9 2.0 2.0 2.6 1.1
2.5% 1.5% 5.9% 29.2% 4.5% 8.2% 10.1% 3.7% 7.5% 16.4%
8.4% 0.8% 19.5% 53.9% 2.0% 8.0% 4.5% 1.7% 9.1% 27.2%
5.2x 5.7x
4.9x 5.3x
13.4x 13.6x
12.4x 12.9x
22.2x 22.0x
19.8x 20.0x
11.6% 11.3%
2.0 2.0
9.0% 6.7%
13.5% 8.2%
6.2x 6.0x 5.6x 4.5x 0.6x NA
5.5x 5.3x 5.1x 4.0x 0.5x NA
NA 13.3x NA 7.0x 4.0x NA
NA 11.2x NA 6.3x 2.1x NA
25.1x 23.2x 18.3x 26.4x NM NA
20.7x 19.3x 15.8x 22.8x 8.3x NA
20.0% 17.0% 16.2% 13.5% NM NM
1.3 1.4 1.1 2.0 NM NA
16.1% 11.4% 7.1% (0.2%) (18.6%) NA
18.0% 6.8% 12.1% (25.1%) (49.0%) 20.1%
4.6x 5.6x
4.1x 5.1x
8.1x 7.0x
6.5x 6.3x
23.3x 24.2x
17.4x 19.3x
16.6% 16.6%
1.4 1.3
3.2% 7.1%
(2.9%) 9.4%
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.
30
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date
Acquirer
Target
Target Subsector
Enterprise Value
EV / LTM Revenue
Exchange Traded Products
NA
NA
Risk Management
NA
NA
5/3/17
ETF Securities Ltd.
5/2/17
Ncontracts LLC
ANZ ETFS Management (AUS) Limited (nka:ETFS Management (AUS) Limited) Supernal Software, LLC
4/27/17
Invesco Ltd.
Source UK Services Limited
Exchange Traded Products
NA
NA
4/27/17
AdvisorEngine, Inc.
Kredible Technologies, Inc.
Broker Software
NA
NA
4/26/17
Virtus Partners Holdings, LLC
Alphakinetic Limited
Fund Management Software
NA
NA
4/20/17
Brelion, LLC
Peer Realty, LLC
Crowdfunding
NA
NA
4/18/17
Investment Grade Technologies LLC
TradeWarrior Inc.
Broker Software
NA
NA
4/18/17
Investoo Group
100ForexBrokers.com
FX Lead Gen
NA
NA
4/7/17
StatPro Group plc
UBS Delta AG
Risk / Analytics
$14
0.8x
4/3/17
Cowen Group, Inc.
ConvergEx Group, LLC
Trading Platform
$116
0.6x
3/27/17
DST Systems, Inc.
Shareholder Servicing
$350
3/22/17
Trumid Financial LLC
International Financial Data Services Ltd. Electronifie Inc.
3/21/17
Sterling Trading Tech
CBOE Livevol, LLC, Livevol X
3/20/17
FactSet Research Systems Inc.
3/17/17
NA (1)
Trading Platform
NA
Trading Platform
NA
NA
BI-SAM Technologies S.A.
Risk / Analytics
NA
NA
BinckBank N.V.
Pritle N.V.
Robo Advisors
$13
NA
3/16/17
Horizon21; H21 Macro Ltd.
Leonteq AG
Investment Platform
NA
NA
3/15/17
Virtu Financial, Inc.
KCG Holdings, Inc.
Trading Services
$1,268
0.9x
3/9/17
Broadridge Financial Solutions, Inc.
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
$1,904
NA
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM. 1) Excludes collateralized financing.
NA
31
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Target Subsector
Enterprise Value
EV / LTM Revenue
Nodal Exchange, LLC
Exchanges
NA
NA
Payward, Inc.
Cryptowatch
Analytics
NA
NA
2/21/17
Covisum, LLC
PrairieSmarts, LLC
Risk Platform
NA
NA
2/15/17
Moody's Corporation
Data / Analytics
NA
NA
2/15/17
AdvisorEngine, Inc.
SCDM Germany GmbH, Structured Finance Data and Analytics Business Wealthminder, Inc.
Wealth Management Software
NA
NA
2/6/17
Thomson Reuters Corporation
Avox Limited
Compliance Data
NA
NA
2/6/17
Thomson Reuters Corporation
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
Intermedium Financial LLC
Broker Software
NA
NA
Regulatory Tech
NA
NA
Fund Management Software
NA
NA
Acquirer
Target
3/3/17
European Energy Exchange AG
3/1/17
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
Spark Finance, LLC
Data / Analytics
NA
NA
1/18/17
North Capital Investment Technology Inc. StockTwits, Inc.
1/9/17
InvestCloud, LLC
Babel Systems Limited
Trade Processing
$20
NA
1/4/17
Dash Financial LLC
LiquidPoint, LLC
Trading Platform
NA
NA
Capital Markets Software
NA
NA
Trading Platform
NA
NA
1/18/17
1/4/17 1/4/17
NewSpring Capital; NewSpring Holdings L.P. Company owned by Pierre Feligioni
Vertical Management Systems, Inc. Quant House SAS
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
32
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
Target Subsector
Enterprise Value
EV / LTM Revenue
12/20/16
FactSet Research Systems Inc.
Vermilion Software Inc.
Broker Software
$67
NA
12/15/16
SS&C Technologies Holdings, Inc.
Conifer Financial Services LLC
Fund Administration
$89
NA
12/9/16
comdirect bank Aktiengesellschaft
OnVista AG
Online Broker
NA
NA
Northeast Retirement Services, LLC
Fund Administration
$115
NA
National Retirement Services, Inc.
Fund Administration
NA
NA
Crowdfunding
NA
NA
Trading Platform
NA
NA
Fund Administration
NA
NA
12/1/16
Benefit Plans Administrative Services, Inc. Ascensus, Inc.
11/30/16
Capital Foundry LLC, Investment Arm
12/5/16
EquityNet, LLC
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
SS&C Technologies Holdings, Inc.
Salentica Inc.
Broker Software
NA
NA
10/20/16
Forum Trading Solutions Ltd
GMEX Technologies Limited
Trading Technology
NA
NA
10/14/16
Morningstar, Inc.
PitchBook Data, Inc.
Data / Analytics
$225
7.2x
10/13/16
Investview, Inc.
RoboVest, Inc.
Trading Platform
NA
NA
10/11/16
Drillinginfo, Inc.
GlobalView Software, Inc.
Trading Platform
NA
NA
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
33
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Acquisitions – Trailing 12 Months (Cont.) ($MM) Announced Date
Acquirer
Target
Target Subsector
Enterprise Value
EV / LTM Revenue
10/10/16
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
Thomson Reuters Corporation
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
SS&C Technologies Holdings, Inc.
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
Advisor Software
NA
NA
Risk & Analytics
NA
NA
Financial Software
$40
3.3x
6/20/16
Teachers Insurance & Annuity Association of America, Endowment Markit Ltd.
6/14/16
Broadridge Financial Solutions, Inc.
6/30/16
MYVEST CORP Prism Valuation Inc. 4Sight Financial Software Limited
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
34
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date
Target
Series
Amount
Investors
Series A
$15
Hongdao Fund, Mobai Capital, Shunwei Capital
NA
$10
F-Prime Capital, Napier Park Global
Target Subsector
5/4/17
Fumi Technology
Trading Platform
4/26/17
Quovo
4/13/17
55 Capital
Series A
$10
Calibrate Management, Point72Ventures, Tectonic Ventures
Advisor Software
3/31/17
The Naga Group AG
Series A
$13
Fosun
Trading Platform
API Manager
NA
$13
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
2/19/17
One Tap Buy
2/16/17
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.
Series C
$25
NA
$32
Roofstock Inc.
Series B
$20
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
$20
FTV Management Group LP
11/14/16
Quantopian
11/14/16
Nutmeg Saving and Investment Ltd.
11/14/16
Notes: Source: CapitalIQ and Pitchbook.
Trading Platform Trading Platform Asset Management Platform
Robo-Advisor Distributed Ledger Robo-Advisor Robo-Advisor Crowdfunding Risk / Analytics Trading Technology Robo-Advisor Crowdfunding Trading / Regulatory Software Broker Software
35
SECURITIES / CAPITAL MARKETS / DATA & ANALYTICS Selected Recent Equity Financings – Trailing 12 Months (Cont.) ($MM) Announced Date
Target
10/26/16
AX Trading Group
10/17/16
InnoTREE Network Tech Co.
Investors
Target Subsector
Series
Amount
NA
$20
Undisclosed
Trading Platform
Series B
$15
Baoli (Hengqin) Capital Management
Data / Analytics
10/12/16
Cloud9 Technologies
NA
$30
9/30/16
OpenGamma
NA
$13
JPMorgan Chase & Co., ICAP, Barclays, Point72 Ventures, Hudson Ridge Asset Management Accel Partners, ICAP Plc
9/21/16
OurCrowd Ltd.
Series C
$72
Undisclosed Investors
Crowdfunding
9/14/16
InvestCloud
NA
$25
Undisclosed Investors
Broker Software
9/12/16
Quandl
Series B
$12
August Capital, Nexus Venture Partners
Data / Analytics
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
Notes: Source: CapitalIQ and Pitchbook.
Trading Technology Risk / Analytics
Investing Platform Crowdfunding
Exchanges
PFM Robo-Advisor Clearing / Settlement
36
SECTION IV: Insurance / Benefits
37
INSURANCE / BENEFITS Public Company Valuations: Financial Metrics $MM, Except Per Share Data Stock Price 5/5/17 Healthcare / Insurance Technology Quintiles IMS Holdings, Inc. Verisk Analytics, Inc. Guidewire Software, Inc. athenahealth, Inc. Ebix, Inc. Crawford & Company Polaris Consulting & Services Limited Symbility Solutions Inc.
$83.30 79.76 61.49 104.02 62.25 10.84 3.23 0.32
LTM Price Range Low High
Equity Value
Net Debt
$61.21 75.60 49.18 90.11 44.27 6.30 2.20 0.24
$20,783 13,188 4,547 4,144 1,969 609 330 77
$7,440 2,129 (583) 186 186 175 (70) (6)
$85.59 87.40 64.00 142.40 65.10 14.37 3.61 0.41
Enterprise Value $28,223 15,317 3,964 4,329 2,154 785 260 71 Mean Median
EV / Revenue CY 17E CY 18E
EV / EBITDA CY 17E CY 18E
Price / EPS CY 17E CY 18E
EPS Long Term Growth
PEG
Revenue Growth 17E/16A Y/Y MRQ
3.5x 7.3x 7.5x 3.5x 6.6x 0.7x NA 2.4x
3.3x 6.9x 6.4x 3.1x 6.1x 0.6x NA 2.1
13.9x 14.8x 46.2x 16.5x 17.7x 6.1x NA 44.1
12.8x 13.8x 27.6x 13.5x 16.5x 5.4x NA 35.9
18.4x 25.1x 89.9x 55.8x 21.0x 14.0x NA NM
16.0x 22.6x 55.8x 41.8x 18.6x 11.9x NA NA
13.1% 10.6% 18.5% 25.1% 15.0% 10.0% NM NM
1.4 2.4 4.9 2.2 1.4 1.4 NA NM
49.7% 4.5% 17.9% 12.9% 9.9% 5.4% NA 16.1%
72.5% 2.0% 13.2% 11.4% 11.3% 0.8% (2.9%) 15.5%
4.5x 3.5x
4.1x 3.3x
22.8x 16.5x
17.9x 13.8x
37.4x 23.0x
27.8x 20.6x
15.4% 14.0%
2.3 1.8
16.6% 12.9%
15.5% 11.4%
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples based on CapitalIQ Consensus Estimates. Multiples 100 considered NM.
38
INSURANCE / BENEFITS Selected Recent Acquisitions – Trailing 12 Months ($MM) Announced Date
Acquirer
Target
5/3/17
Genpact Limited
BrightClaim, Inc.
4/25/17
Vertafore, Inc.
RiskMatch, LLC
4/6/17
Open GI Limited
Transactor Global Solutions Limited
3/13/17
The Travelers Companies, Inc.
Simply Business
2/28/17
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
Insurance Risk Management
NA
NA
Insurance Software
$50
NA
Insurance Tech
$490
NA
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
Revenue Cycle Management
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
$160
NA
12/15/16
Mercer LLC
Thomsons Online Benefits Limited
HR/Benefits Software
NA
NA
12/8/16
Insurity, Inc.
Systema Software, LLC
Claims Admin. Software
NA
NA
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
39
INSURANCE / BENEFITS Selected Recent Acquisitions – Trailing 12 Months (Cont’d) ($MM) Announced Date
Acquirer
Target
11/30/16
Vimo, Inc.
Array Health Solutions Inc.
11/28/16
Allstate Non-Insurance Holdings, Inc.
SquareTrade, Inc.
11/17/16
nThrive, Inc.
Adreima, Inc.
11/1/16
WageWorks, Inc.
ADP's HAS & COBRA Businesses
10/24/16
AIR Worldwide Corporation
Analyze Re Inc.
Target Subsector
Enterprise Value
EV / LTM Revenue
Insurance Exchange
NA
NA
Insurance
$1,430
NA
Revenue Cycle Management
NA
NA
HAS and COBRA Administration
$235
NA
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
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
Guidewire Software, Inc.
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
$7
NA
10/6/16 10/5/16
Notes: Source: CapitalIQ and Wall Street Research Estimates. Multiples 100 considered NM.
40
INSURANCE / BENEFITS Selected Recent Equity Financings – Trailing 12 Months ($MM) Announced Date
Target
5/2/17
One Inc.
4/27/17
Singapore Life
4/25/17
Hibob
4/20/17
Lemonade Inc.
Series
Amount
NA
$16
Series A
$50
Series A
$18
NA
NA
Investors American Family Ventures, AXA Strategic Ventures, Centana Growth Partners, MassMutual Ventures Impact Capital Holdings, IPGL Arbor Ventures, Battery Ventures, Bessemer Venture Partners, Eight Roads Ventures Allianz
Series A
$25
BIMA
NA
$17
Munich Re/HSB Ventures, Ribbit Capital, TLV Partners;, Zeev Ventures Axiata Digital
Trov
NA
$45
Munich Re HSB Ventures
4/10/17
Next Insurance
4/10/17 4/6/17
Series C
$25
Decisely
NA
$60
3/25/17
Ottonova
NA
$16
Highland Capital Management, Accel, Aspect Ventures, CRV, Northwestern Mutual Future Ventures, Pilot Wall Group Two Sigma Private Investments, EPIC Insurance Brokers and Consultants B-to-V Partners, STS Ventures, Tengelmann Ventures
3/21/17
Jellyvision
Series B
$20
Updata Partners
4/4/17
Amino
3/30/17
3/17/17
simplesurance
NA
$21
2/22/17
EverQuote, Inc.
Series B
$13
Allianz SE, Rakuten FinTech Fund, Rheingau Founders, Route 66 Ventures 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
10/20/16
EverQuote, Inc.
Series B
$23
10/19/16
Ladder Financial Inc.
Series A
$14
Notes: Source: CapitalIQ and Pitchbook.
Altimeter Capital, Four Rivers Group, Greenspring Associates, Matrix Partners, Scale Venture Partners, Sequoia Capital Aleph, General Catalyst, Google Ventures, Sequoia Capital, Thrive Capital, Tusk Ventures, XL Innovate Adams Street Partners, Blue Cloud Ventures, First Data, Intel Capital, Norwest Venture Partners, PNC Financial Services Group, Burman Family Office, Unilazer Ventures BrownSavano Direct Capital Partners, Oceanic Partners, Stratim Capital LLC, T Capital Management LLC 8VC, Canaan Partners, Lightspeed Venture Partners, Nyca Partners LLC
Target Subsector Insurance Software Insurance Software HR Software Insurance Insurance Tech Insurance Tech Insurance Tech Benefits Software Benefits Software Insurance Tech HR Software Insurance Tech Insurance Marketplace Benefits Software HR / Benefits Software Insurance Revenue Cycle Management Insurance Lead Gen Insurance Lead Gen Life Insurance
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INSURANCE / BENEFITS Selected Recent Equity Financings – Trailing 12 Months (Cont’d) ($MM) Announced Date
Target
Series
Amount
Target Subsector
$500
Kleiner Perkins Caufield & Byers, Propel Venture Partners, Rosemark Capital Group, Transamerica Ventures Fund Caisse de Depot et Placement du Quebec
Claims Management
NA
$50
Carrick Capital Partners LLC
Healthcare Payments
Series A
$28
Horizons Ventures, Target Ventures
10/4/16
Hixme Inc.
Series B
$14
9/28/16
Sedgwick
NA
9/26/16
InstaMed Communications, LLC
9/21/16
FinanceFox
6/14/16
League
Series A
$25
5/20/16
Clover Health
Series C
$165
Notes: Source: CapitalIQ and Pitchbook.
Investors
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
HR Software
Insurance Tech Health Insurance Tech Insurance
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