QUARTERLY FINANCIAL TECHNOLOGY EXECUTIVE BRIEFING ANALYSIS THROUGH Q3 2020 OCTOBER 1, 2020 Table of Contents
Morgan Partners Overview – Leaders in FinTech M&A 3
Sub-Sector Comparison: Q3 2020
FinTech Sub-Sector Performance 5
Median Multiples by Sub-Sector 6
Variability by Sub-Sector 7
Sub-Sector Valuation Multiples Relative to Growth 8
Sub-Sector Aggregate Market Cap 9
Public & Private FinTech Transactions Spotlight 10
Sub-Sector Analysis
Capital Markets Technology 14
Insurance Technology 16
Banking Technology 17
Payments 20
Data & Analytics 22
Service Providers 24
Traditional Financial Institutions 26
Contact Information 29
This communication is provided for informational purposes only, is not a formal confirmation of any particular transaction, and should not be regarded as an offer to sell or solicitation to buy any financial instrument or service. Morgan Partners LLC accepts no liability whatsoever arising directly or indirectly from the use of this document and offers no warranty in relation to the accuracy or completeness off its contents. Unauthorized distribution without prior consent from Morgan Partners LLC is strictly prohibited.
Morgan Partners LLC is a broker-dealer registered with the Securities and Exchange Commission and is a FINRA / SIPC member firm.
Quarterly Financial Technology Executive Briefing 2 Leaders in FinTech M&A
• Founded in 2005, Morgan Partners is the leading investment bank specializing in the middle-market insurance, capital markets and banking technology space • Morgan Partners represents publicly traded, privately owned, and PEG- backed FinTech companies on the sell-side and buy-side in: o Strategic exits o Capital raises and recapitalizations o Buyouts o Acquisitions • Enterprise value of the typical transaction is $50M – $250M+ • The firm has an exceptional FinTech industry reputation and track record of successful deals with satisfied, referenceable clients
Selected FinTech Deal Experience
FV Holdings LLC
A SUBSIDIARY OF A PORTFOLIO COMPANY OF A PORTFOLIO COMPANY OF A PORTFOLIO HAS MADE AN HAS ACQUIRED COMPANY OF A PORTFOLIO INVESTMENT IN COMPANY OF
HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED
FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR TO THE SELLER TO THE SELLER TO THE BUYER TO THE SELLER TO THE BUYER TO THE SELLER TO THE BUYER September 2020 June 2020 February 2020 December 2019 November 2019 August 2019 July 2019
HAS COMPLETED A STRATEGIC HAS ACQUIRED A PORTFOLIO HAS MADE AN TRANSACTION WITH Has MADE A MAJORITY HAS ACQUIRED COMPANY OF HAS ACQUIRED INVESTMENT IN EQUITY INVESTMENT IN HAS ACQUIRED FROM A PORFTFOLIO COMPANY OF FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR TO THE SELLER TO THE BUYER TO THE SELLER TO THE SELLER TO THE SELLER TO THE SELLER TO THE BUYER June 2019 January 2019 November 2018 November 2018 July 2018 March 2018 August 2017
A PORTFOLIO COMPANY OF A PORTFOLIO COMPANY OF HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED HAS ACQUIRED
HAS ACQUIRED HAS ACQUIRED FROM A PORTFOLIO FROM COMPANY OF £491 MILLION FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR FINANCIAL ADVISOR TO THE BUYER TO THE BUYER TO THE SELLER TO THE SELLER TO THE SELLER TO THE SELLER TO THE SELLER May 2017 May 2017 February 2017 December 2016 November 2015 July 2015 May 2015
Quarterly Financial Technology Executive Briefing 3 Morgan Partners Deal Announcement
Overview
A SUBSIDIARY OF WELIS is a premier provider of mission-critical life and annuity illustration software for U.S. insurance carriers. The Company licenses web-based software enabling life insurance carriers to HAS ACQUIRED provide an illustration as part of every new sale and annually thereafter for in force policies. The Company’s software is written and maintained by a team of actuaries and supports an array of life, annuity, and disability products of any complexity FINANCIAL ADVISOR TO THE SELLER level for the largest U.S. insurers. September 2020
“The Morgan Partners Morgan Partners Approach & Results team was pivotal in communicating our story to the marketplace and achieving the ideal Morgan Partners was engaged to secure liquidity from suitable outcome for our business strategic and financial acquirers to enable a key shareholder’s and its shareholders. retirement. The sale process was tailored and limited given the Their knowledge, COVID-19 environment. Morgan Partners was able to drive dedication, and robust price discovery even during the pandemic and diligence expertise brought this was completed 100% virtually. Through the process, Morgan transaction together; Partners was able to deliver a premium result to the WELIS we highly recommend shareholders. them.” The acquisition gives iPipeline with the industry’s most advanced illustrations engine which will allow agents and Stephen Frederick advisors to quickly run and distribute real-time scenario-based CEO illustrations. With the integration of the WELIS Ascent WELIS illustration platform into iPipeline’s low-code SSG Digital Platform, iPipeline is positioned to become the unquestioned leader in illustrations software.
Quarterly Financial Technology Executive Briefing 4 Sub-Sector Comparison
Quarterly Financial Technology Executive Briefing 5 FinTech Sub-Sector Performance Through Q3 20201
40.0%
30.0% 28.7% 25.5% 21.4% 20.0% 19.9% 15.0%
10.0%
3.4% 0.0% 1.6%
(10.0%) (9.5%)
(20.0%)
(30.0%)
(40.0%)
S&P 500 Insurance Technology Service Providers Capital Markets Technology Banking Technology Payments Data & Analytics Traditional Financial Institutions
• All sub-sectors were able to continue their upward momentum from Q2 2020 with all but Traditional Financial Institutions exhibiting positive YTD performance through Q3 2020 • While showing growth from Q1 and Q2 2020, Capital Markets Technology and Traditional Financial Institutions continue to lag behind the other sub-sectors and remain impacted by the effects of COVID-19 • Every other sub-sector reached their YTD high during Q3 2020 • Payments continues to lead all FinTech sub-sectors, with Service Providers second in the pack showing a strong resurgence from Q2 2020
These eight indices are maintained by Morgan Partners, and their constituents shown on pages 14, 16, 18, 20, 22, 24, and 27-28 1 Capital Markets Technology, Insurance Technology, Banking Technology, Payments, Data & Analytics, Service Providers, and Traditional Financial Institutions performance reflects the constituents in this briefing, and are calculated as the market cap-weighted daily percentage price change from the base value for each constituent. Constituents must have pricing data for the entire measurement period for inclusion in the aggregate. Source: S&P Capital IQ, Morgan Partners
Quarterly Financial Technology Executive Briefing 6 Sub-Sector Comparison (Median Multiples)
Data & Analytics 8.4x 1 Banking Technology 8.5x
Capital Markets Technology 4.5x
Insurance Technology 5.9x
Financial TechnologyFinancial Payments 9.1x
Service Providers 2.5x
Traditional Financial Institutions 1.8x Enterprise Value / LTM Revenue LTM / Value Enterprise S&P 500 3.3x
Data & Analytics 25.7x 1 Banking Technology 29.8x
Capital Markets Technology 17.2x
Insurance Technology 23.8x
Payments 22.8x Financial TechnologyFinancial
Service Providers 15.8x
Traditional Financial Institutions 10.6x Enterprise Value / LTM EBITDA LTM / Value Enterprise S&P 500 13.7x
• Most FinTech sub-sectors experienced an increase in median revenue multiples since Q2, with Insurance Technology again having the largest relative increase as multiples rose from 4.7x to 5.9x – Duck Creek’s IPO with its strong multiples has contributed to this shift • Median EBITDA multiples also followed this trend and exhibited positive movement across all FinTech sub-sectors with the most significant uptick coming from Service Providers which increased from 11.9x to 15.8x 1Enterprise value, revenue and EBITDA are universe medians drawn from publicly traded companies as of 9/30/2020 where the constituents of each sub-sector are those in this briefing. LTM denotes latest 12 months. Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 7 Sub Source: S&P Capital IQ Source: S&PCapital LTM latest months. 12 briefing.denotes 2 1 Enterprise value, revenue and EBITDA are universe medians drawn from publicly traded companies as of 9/30/2020, where the the con of where as 9/30/2020, companies traded from drawn publiclymedians EBITDA and are universe revenue value, Enterprise 25 by `represented Variability • • Enterprise Value / LTM EBITDA1 Enterprise Value / LTM Revenue1 than than the S&P 500 Many FinTech sub bounds both for revenue and EBITDA multiples 2020 to Q3 from Q1 of Most the tracked FinTech sub - Financial Technology Financial Technology Sector Variability (25 Traditional Financial Institutions Financial Traditional Traditional Financial Institutions Financial Traditional th and 75th percentile multiples from from sub each multiples percentile and 75th Capital Markets Technology Markets Capital Capital Markets Technology Markets Capital Insurance Technology Insurance Insurance Technology Insurance - sectors sectors continue broadly to earn higher revenue and EBITDA multiples Banking Technology Banking Banking Technology Banking Service Providers Service Service Providers Service Data & Analytics & Data Data & Analytics & Data Payments Payments S&P 500 S&P S&P 500 S&P - sectors sectors positivesaw in shifts their lower and upper - sector 0.0x 0.0x th 1.4x 2.2x and 75 7.2x 0.9x 8.7x 3.6x 3.7x 3.0x 11.8x 10.0x 4.6x 14.0x 3.1x 5.7x 3.7x 16.8x th 18.4x Quarterly Financial Technology Executive Briefing Quarterly ExecutiveFinancial Briefing Technology 4.9x 6.0x PercentileMultiples) 7.1x 5.9x 23.1x 20.0x 17.6x 24.5x 19.0x 19.3x 9.0x sti tuents of of sub each tuents 30.0x 27.5x 10.6x 28.5x 12.0x 11.6x 31.3x 11.8x - sector this insector are those 12.4x 36.1x 40.0x 15.0x 38.2x 1 8 Sub-Sector Valuation Multiples Relative to Growth
1 10% Insurance 9% Technology Data & Analytics Capital Markets 8% Technology 7% Banking Technology 6% Traditional Financial Institutions Payments 5%
4% Service Providers 3% 2% 1% 0%
0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x 8.0x 9.0x 10.0x
Median Rev GrowthRevLTM / Medianto EV Revenue 1 14% Data & Analytics
12% Traditional Financial 10% Institutions
8% Banking 6% Technology
4% Service Providers Payments
2% Insurance Technology 0% 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x
-2% Capital Markets Technology Median EBITDA EBITDA Median toGrowth EV EBITDALTM /
• Data & Analytics boasts the strongest LTM revenue growth and EBITDA growth of all tracked sub-sectors • Payments continues to earn the strongest median revenue multiples, while Banking Technology edges out the other sub-sectors in median EBITDA multiples
1 Enterprise value, revenue and EBITDA are universe medians drawn from publicly traded companies as of 9/30/2020, where the constituents of each sub-sector are those in this briefing. LTM denotes latest 12 months. Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 9 Sub-Sector Aggregate Market Cap
$54,611 $231,558 $49,648 $369,056
$532,562
$2,842,653
$1,260,707
Sector Aggregate Market Cap ($M)Cap Market Aggregate Sector -
Sub Traditional Financial Institutions Payments
Service Providers Data & Analytics
Banking Technology Capital Markets Technology
Insurance Technology
Market Cap Market Cap Sub-Sector ($M) Growth % (6/30/2020) (9/30/2020) Traditional Financial Institutions 2,842,653 2,817,313 (0.9%) Payments 1,260,707 1,395,479 10.7% Service Providers 532,562 614,671 15.4% Data & Analytics 369,056 393,473 6.6% Banking Technology 231,558 258,325 11.6% Capital Markets Technology 54,611 57,564 5.4% Insurance Technology 49,648 57,759 16.3% Total 5,340,795 5,594,584
• With the exception of Traditional Financial Institutions, all sub-sectors have experienced an increase in aggregate market capitalization since Q2 2020 • Insurance Technology posted the largest expansion of all FinTech sub-sectors over the last quarter with an increase in aggregate market capitalization of 16.3%
Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 10 Public & Private FinTech Transactions Spotlight
Quarterly Financial Technology Executive Briefing 11 Public FinTech M&A Activity
2020 YTD = 30 2019 = 53 Number of Deals 2017 - 2018 = 100 2015 - 2016 = 75 2013 - 2014 = 54 1 1 5 2
1 2020 YTD 3 2 4 9 6 2 2 2 0 1 2019 1 3 8 2 3 3 5 2 1 4 2 7 1 7 3 3 11 5 4 4 2 11 3 6 2017-2018 1 6 5 11 7 4 1 3 3 5 4 6 3 Number of Transactions of Number 7 7 5 2015-2016 4 3 4 5 8 7 4 4 2 7 8 3 6 2 3 3 3 3 3 2013-2014 2 1 1 2 2 2 1
2020 YTD = $51,184
1,2,3 2019 = $114,865 Total Deal Size 2017 - 2018 = $60,928 $118,555 ($M) 2015 - 2016 = $141,776 2013 - 2014 = $16,818
$72,461 $69,331
$51,184
$36,117 $31,299
$11,111
$5,740 $24,899 Annual Aggregated Deal Size Over Time Over Size Deal Aggregated Annual 2012 2013 2014 2015 2016 2017 2018 2019 2020 YTD 1Transaction count includes both acquisitions and divestitures and leads to double counting for select transactions within public FinTech universe, while aggregated deal size controls for double counting 22019 spike is due to the $43.6 billion Fidelity National acquisition of Worldpay and the $41.8 billion Fiserv acquisition of First Data Corporation 22020 deal size is largely driven by Willis Towers Watson’s $30B acquisition of Aon Source: S&P Capital IQ Quarterly Financial Technology Executive Briefing 12 Private Equity Spotlight
Private Equity Recent Relevant FinTech Latest Fund Group Transaction Investments Raised
Clearlake Capital Partners VI $7B Acquisition September 2020
Thomas H. Lee Equity Fund VIII LP $3.6B Acquisition September 2020
Thoma Bravo Fund XIII $12.6B Take-Private August 2020
Corsair V $1B Acquisition July 2020
Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 13 Sub-Sector Analysis
Quarterly Financial Technology Executive Briefing 14 Capital Markets Technology: Public Company Statistics
22.7x23.1x 8.0x 22.1x 22.0x 25.0x 21.2x21.2x 20.6x 20.5x 20.9x 19.8x 20.2x19.9x 20.3x 7.0x 19.0x 19.0x 19.5x 18.4x 18.2x 18.6x18.4x 17.4x 17.1x 17.6x17.2x 20.0x 16.4x 6.0x 15.7x 15.0x 5.0x 15.0x
4.7x 4.0x 4.5x 4.5x 4.3x 4.4x 10.0x 4.0x 4.1x 3.7x 3.0x 3.5x 3.5x 3.6x 3.5x 3.4x 3.3x 3.3x 3.4x 3.1x 3.1x 3.1x 2.9x 2.9x 3.0x 2.9x 3.0x 5.0x 2.0x 2.6x 2.6x 2.6x
1.0x 0.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
30.0%
20.0%
10.0%
0.0%
(10.0%)
(20.0%) LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (30.0%) 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Wolters Kluwer 4.8% $25,248 $5,291 $1,564 29.6% 5.8% 7.0% 4.8x 16.1x SS&C Technologies Holdings 7.2% 22,528 4,659 1,715 36.8% 6.2% 12.9% 4.8x 13.1x Informa (20.0%) 10,078 2,844 708 24.9% (18.5%) (0.0%) 3.5x 14.2x SimCorp 16.9% 5,259 512 135 26.3% 8.6% 16.6% 10.3x 39.0x Envestnet 5.4% 4,741 958 131 13.7% 14.4% 16.3% 4.9x 36.1x IRESS (12.6%) 1,388 371 76 20.4% 12.8% 11.2% 3.7x 18.3x First Derivatives 29.7% 1,284 304 36 11.7% 9.4% 10.7% 4.2x 36.1x Linedata Services (6.5%) 307 184 37 20.3% (6.2%) (4.2%) 1.7x 8.2x Mean $8,854 $1,890 $550 29.1% 4.0% 8.8% 4.8x 22.7x Median $5,000 $735 $133 18.1% 7.4% 11.0% 4.5x 17.2x
Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 15 Capital Markets Technology: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/23/20 Impact Financial Systems iPipeline M&A NA NA
9/10/20 Imagineer Technology Group Dynamo Software M&A NA NA
7/29/20 Advisor Software Refinitiv M&A NA NA
Khosla Ventures, Centana Growth 7/28/20 True Link Raise $35M NA Partners
7/27/20 Mediant Argentum Raise $19M NA
Blackrock, HV Holtzbrinck Ventures, 7/22/20 Scalable Capital Raise $57M NA Tengelmann Ventures
7/13/20 Robinhood D1 Partners, DST Global Raise $660M NA
7/7/20 Live Oak Technologies Docusign M&A $38M NA
Notable Transaction
Dynamo Software Acquires Imagineer Technology Group1
Imagineer Technology Group is a provider of relationship management and investor portal software to assist investor relations, fund marketing, and investment management professionals. The company was founded in 1998 and is based out of New York, NY. Acquires
• This transaction brings together two leading providers of software to the alternative investment space h • Dynamo will have significant cross-sell capabilities to its 1k+ clients with Imagineer’s CRM, deal management, portfolio monitoring, and investor reporting offerings • The combined company will look to cement its position as a leader in the Undisclosed hedge fund space September 10, 2020
¹https://www.businesswire.com/news/home/20200910005296/en/Dynamo-Acquires-Imagineer-Technology-Group-Expanding-Leading Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 16 Insurance Technology: Public Company Statistics
25.8x 8.0x 24.8x 23.8x 25.0x 7.0x 20.4x 21.4x 19.5x 20.2x 21.2x 20.5x 18.7x 18.7x 19.1x 6.0x 17.1x 16.9x 17.2x 17.6x 20.0x 15.4x 15.5x 16.5x 15.1x 14.6x 14.8x 15.3x 15.1x 14.2x 5.0x 5.9x 12.8x 15.0x 11.2x 4.0x 4.7x 10.0x 3.0x 3.4x 3.1x 2.8x 2.8x 2.8x 2.8x 2.9x 2.9x 2.9x 3.3x 5.0x 2.0x 2.7x 2.7x 2.6x 2.7x 2.6x 2.7x 2.6x 2.6x 2.6x 2.4x 2.4x 2.5x 2.5x 2.5x 2.4x
1.0x 0.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0% LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (10.0%) 0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Verisk Analytics, Inc. 8.7% $33,055 $2,698 $1,141 42.3% 8.3% 9.6% 12.3x 29.0x Guidewire Software, Inc. (5.7%) 8,125 742 17 2.3% 3.2% (6.0%) 10.9x NM CoreLogic, Inc. 0.6% 6,891 1,806 443 24.5% 4.3% 1.5% 3.8x 15.5x Duck Creek Technologies, Inc. 8.1% 5,694 201 12 5.7% 20.8% 7.3% 28.3x NM LiveRamp Holdings, Inc. 22.1% 2,773 397 (119) NM 30.0% 33.2% 7.0x NM Sapiens International Corporation N.V. 9.8% 1,557 353 58 16.3% 16.5% 14.9% 4.4x 27.0x Ebix, Inc. (7.0%) 1,303 543 138 25.4% (1.7%) 8.1% 2.4x 9.5x EverQuote, Inc. (33.9%) 999 301 (3) NM 58.7% 59.0% 3.3x NM FINEOS Corporation Holdings plc 25.6% 1,005 99 3 3.3% 39.8% 34.8% 10.2x NM Quartix Holdings plc 2.2% 192 32 9 28.9% 3.2% 1.4% 5.9x 20.5x msg life ag (1.9%) 88 176 3 1.6% 16.6% 17.3% 0.5x 30.7x Mean $5,608 $668 $155 23.2% 18.2% 16.5% 8.1x 22.0x Median $1,557 $353 $12 3.3% 16.5% 9.6% 5.9x 23.8x
Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 17 Insurance Technology: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/21/20 WELIS iPipeline M&A NA NA
9/18/20 Next Insurance CapitalG, Munich RE Raise $250M NA
9/17/20 Zywave Clearlake Capital M&A NA NA
Blackstone Tactical Opportunities 9/16/20 Ki Insurance Raise $500M NA Advisors, Fairfax Financial Holdings
9/14/20 Insurance Technologies Thomas H. Lee Partners M&A NA NA
8/13/20 Vertafore Roper Technologies M&A $5,350M NA
FinTLV, Ribbit Capital, Dragoneer, 7/21/20 Hippo Analytics Raise $150M NA Innovius Capital
7/20/20 Majesco Thoma Bravo M&A $536M 3.7x
Notable Transaction
Vertafore Acquired by Roper Technologies1
Vertafore is an insurance distribution platform for carriers, agencies, brokers, MGAs, and MGUs. The platform serves over 20k agencies, 1k carriers, and 23 state governments with its offering of agency management, ratings, regulation, compliance, data and analytics, and connectivity products. Acquires
• Roper Technologies continues its investment into the insurtech sector, following its acquisition of iPipeline in Aug 2019 h • Roper Technologies, unlike many diversified conglomerates, has shown strong interest in acquiring software businesses with high recurring revenue • Vertafore will operate independently of iPipeline and serve as Roper’s platform for further acquisitions in the P&C insurance tech space $5.35 Billion August 13, 2020
¹https://www.businesswire.com/news/home/20200813005244/en/Vertafore-Acquired-Roper-Technologies Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 18 Banking Technology: Public Company Statistics
28.6x28.5x 29.8x 10.0x 26.7x 30.0x 9.0x 24.4x 22.9x 23.1x 25.0x 21.6x21.4x21.5x 21.0x 8.0x 20.0x 18.8x 8.5x 17.1x 20.0x 7.0x 15.7x15.4x15.5x15.4x16.0x 7.7x 14.6x 13.8x13.8x14.4x14.0x 14.3x 13.5x12.8x 6.9x 6.0x 6.6x 6.5x 15.0x 6.1x 5.0x 5.6x 5.5x 5.2x 10.0x 4.0x 4.9x 4.7x 4.4x 4.3x 4.3x 3.7x 4.0x 5.0x 3.0x 3.5x 3.7x 3.6x 3.7x 3.7x 3.2x 3.3x 3.3x 3.3x 3.2x
2.0x 3.0x 0.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%
LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (10.0%) 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Fidelity National Information Services, Inc.9.9% $111,072 $12,203 $4,285 35.1% 44.9% 34.9% 9.1x 25.9x Fiserv, Inc. 5.5% 92,077 14,407 4,523 31.4% 141.0% 111.6% 6.4x 20.4x Wolters Kluwer N.V. 4.8% 25,248 5,291 1,564 29.6% 5.8% 7.0% 4.8x 16.1x Black Knight, Inc. 20.2% 14,529 1,183 399 33.7% 3.3% 5.1% 12.3x 36.4x NICE Ltd. 20.0% 13,690 1,620 427 26.4% 6.3% 8.2% 8.5x 32.1x Jack Henry & Associates, Inc. (11.7%) 12,281 1,697 446 26.3% 9.3% 9.3% 7.2x 27.5x Temenos AG (15.7%) 10,811 933 238 25.5% 3.5% 9.8% 11.6x 45.4x Pegasystems Inc. 20.0% 9,843 986 (105) NM 12.4% 11.0% 10.0x NM nCino, Inc. 12.2% 6,909 170 (30) NM 40.0% 51.0% 40.7x NM Q2 Holdings, Inc. 6.6% 4,992 357 (46) NM 28.9% 30.7% 14.0x NM Computer Services, Inc. 15.9% 1,628 286 – – 5.6% 6.7% 5.7x NM Intellect Design Arena Limited 99.4% 428 179 10 5.5% (9.6%) (7.1%) 2.4x 43.4x Crealogix Holding AG 25.3% 164 109 1 0.8% 1.7% 1.4% 1.5x NM Mean $23,359 $3,032 $901 29.7% 22.5% 21.5% 10.3x 30.9x Median $10,811 $986 $238 24.2% 6.3% 9.3% 8.5x 29.8x
Note: Fiserv and nCino do not appear on graph because their metrics are out of range Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 19 Banking Technology: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/28/20 Acin Notion Capital Raise $12M NA
9/21/20 TrueLayer Tencent, Temasek Raise $25M NA
Coatue Management, ICONIQ Capital, 9/18/20 Chime Raise $485M NA Tiger Global
8/12/20 Blend Labs Canapi Ventures Raise $75M NA
Eurazeo Growth, British Patient Capital, 7/28/20 Thought Machine Raise $42M NA SEB
7/28/20 Comply Advantage Ontario Teachers’ Pension Plan Board Raise $50M NA
7/27/20 Optimal Blue Black Knight M&A $1,800M 16.4x
Coatue Management, Goldman Sachs, 7/16/20 Bond Financial Technologies Raise $32M NA Mastercard
Notable Transaction
Chime raises $485M at a $14.5B Valuation1
Chime is a US-based challenger bank which provides a range of financial services through a mobile app.
• Chime has become the most valuable U.S. consumer FinTech with its pre- Series F Raise money valuation increasing by ~150% since its last raise in Dec 2019 • COVID-19 has increased interest in digital neobanks which remove the need to visit an in-person branch h • According to CEO Chris Britt, the company has tripled its transaction volume and revenue and reached profitability in 2020 • Investors in this round include Access Technology Ventures, Coatue Management, Dragoneer, DST Global, General Atlantic, ICONIQ Capital, $485 Million Tiger Global, and Whale Rock Capital September 18, 2020
¹https://www.cnbc.com/2020/09/18/chime-is-now-worth-14point5-billion-surging-past-robinhood-as-the-most-valuable-us-consumer-fintech-.html Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 20 Payments: Public Company Statistics
12.0x 30.0x
23.4x24.1x 22.8x 21.9x 22.5x 25.0x 10.0x 19.7x 18.8x 19.5x 19.9x 17.1x 19.2x 16.4x 18.3x 18.1x 17.5x 17.0x 17.4x 17.0x 20.0x 15.5x15.9x15.6x 16.2x 16.1x 9.1x 8.0x 14.7x14.9x14.5x 15.1x 8.8x 7.6x 15.0x 7.3x 6.0x 7.0x 7.0x 6.9x 6.3x 6.1x 6.0x 6.1x 10.0x 5.6x 5.7x 5.0x 5.0x 4.0x 5.0x 4.7x 4.8x 4.8x 4.9x 4.5x 4.5x 4.4x 4.5x 4.6x 5.0x 4.2x 4.1x
2.0x 0.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
160.0% 140.0% 120.0% 100.0% 80.0% 60.0% 40.0% 20.0% 0.0%
(20.0%) LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (40.0%) 0.0x 3.0x 6.0x 9.0x 12.0x 15.0x 18.0x 21.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Visa (5.7%) $23,917 $2,566 $1,342 52.3% 1.4% 8.8% 9.3x 17.8x Mastercard 35.8% 16,750 226 (3) NM 33.0% 40.8% 74.1x NM PayPal 3.6% 434,504 22,882 15,476 67.6% 2.7% 10.2% 19.0x 28.1x Fidelity National Information Services 14.5% 337,636 16,225 9,575 59.0% 3.3% 11.4% 20.8x 35.3x Fiserv 13.3% 224,877 19,218 3,660 19.0% 17.6% 14.9% 11.7x 61.4x Square (1.4%) 13,178 1,685 625 37.1% 4.3% 11.0% 7.8x 21.1x Global Payments 9.9% 111,072 12,203 4,285 35.1% 44.9% 34.9% 9.1x 25.9x Adyen (15.5%) 7,894 1,681 542 32.2% 6.1% 16.9% 4.7x 14.6x FleetCor Technologies 21.4% 53,587 3,458 314 9.1% 46.3% 50.1% 15.5x NM StoneCo 9.7% 2,104 457 105 23.0% (13.7%) (11.4%) 4.6x 20.0x Edenred (4.9%) 4,618 2,592 454 17.5% (1.6%) 7.5% 1.8x 10.2x WEX 4.5% 61,297 6,669 2,499 37.5% 87.5% 71.7% 9.2x 24.5x Euronet Worldwide 5.5% 92,077 14,407 4,523 31.4% 141.0% 111.6% 6.4x 20.4x EVO Payments 3.5% 344 156 49 31.4% (1.6%) 4.5% 2.2x 7.0x Bottomline Technologies (15.9%) 1,911 442 38 8.7% 4.8% 4.7% 4.3x 49.7x i3 Verticals (15.9%) 658 220 26 11.6% (37.3%) (15.5%) 3.0x 25.7x Cass Information Systems 55.1% 73,066 5,885 (4) NM 49.0% 43.1% 12.4x NM Mean $85,852 $6,528 $2,559 39.2% 22.8% 24.4% 12.7x 25.8x Median $23,917 $2,592 $542 20.9% 4.8% 11.4% 9.1x 22.8x
Source: S&P Capital IQ
Quarterly Financial Technology Executive Briefing 21 Payments: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/23/20 SpotOn DST Global Raise $60M NA
9/17/20 Affirm GIC Raise $500M NA
9/17/20 AFEX FLEETCOR M&A NA NA
9/14/20 Klarna Silver Lake Raise $650M NA
8/25/20 Sendwave WorldRemit M&A $500M NA
8/5/20 Invenger One Inc M&A NA NA
7/30/20 MSTS Corsair Capital M&A NA NA
7/14/20 TransferWise D1 Capital Partners, Lone Pine Capital Raise $319M NA
Notable Transaction
One Inc Acquires Invenger Technologies1
Invenger with its InsurPay offering provides a digital disbursement platform serving the P&C insurance space. The company has three of the top 15 national insurance carriers as clients. Acquires • The outbound payments landscape has been rapidly growing as more insurance carriers look to provide a modern, digital solution to their clients • One Inc will be able to augment its outbound payments capabilities and h provide a robust inbound-outbound solution to P&C carriers • One Inc is positioned to become the market leader in premiums and claims payment processing as it continues to gain market share in the red-hot insurance payments vertical Undisclosed August 5, 2020
¹https://www.globenewswire.com/news-release/2020/08/05/2073468/0/en/One-Inc-Acquires-Invenger-Technologies-Including-Invenger-InsurPay.html Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 22 Data & Analytics: Public Company Statistics
8.0x 7.3x 7.5x 35.0x 7.0x 6.9x 7.0x 6.4x 6.1x 6.0x 5.8x 5.9x 30.0x 6.0x 5.4x 5.0x 5.0x 5.0x 5.0x 4.8x 4.9x 5.0x 4.5x 4.6x 25.0x 5.0x 4.1x 4.2x 4.2x 4.2x 4.2x 3.9x 4.0x 3.9x 25.0x 25.0x 25.2x 4.0x 22.6x22.0x 20.0x 20.2x 3.0x 19.8x 18.4x18.4x 15.0x 16.8x16.5x 17.3x 2.0x 15.6x15.7x15.5x16.1x15.7x15.5x 14.2x14.0x 13.6x14.1x 13.1x 12.8x 10.0x 1.0x 12.1x 12.5x 13.0x
0.0x 5.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0% LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (5.0%) 0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x 14.0x 16.0x 18.0x 20.0x 22.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin S&P Global Inc. 9.2% $90,433 $7,153 $3,944 55.1% 12.5% 10.4% 12.6x 22.9x Moody's Corporation 5.3% 58,514 5,198 2,567 49.4% 15.6% 11.6% 11.3x 22.8x Thomson Reuters Corporation 15.3% 42,412 5,921 1,321 22.3% 3.5% 5.9% 7.2x 32.1x Experian plc 3.6% 38,696 5,179 1,578 30.5% 6.5% 5.3% 7.5x 24.5x IHS Markit Ltd. 3.7% 35,915 4,301 1,414 32.9% (1.4%) 2.1% 8.4x 25.4x Verisk Analytics, Inc. 8.7% 33,055 2,698 1,141 42.3% 8.3% 9.6% 12.3x 29.0x MSCI Inc. 7.2% 31,935 1,627 888 54.6% 10.2% 10.3% 19.6x 35.9x Equifax Inc. (8.2%) 22,239 3,722 940 25.3% 9.6% 6.7% 6.0x 23.6x TransUnion (3.5%) 19,504 2,697 978 36.3% 8.0% 13.6% 7.2x 19.9x Black Knight, Inc. 20.2% 14,529 1,183 399 33.7% 3.3% 5.1% 12.3x 36.4x Fair Isaac Corporation 1.0% 13,295 1,226 313 25.6% 10.3% 16.5% 10.8x 42.4x FactSet Research Systems Inc. 1.7% 12,959 1,494 497 33.3% 4.1% 4.1% 8.7x 26.1x Morningstar, Inc. 13.6% 7,121 1,298 270 20.8% 22.8% 20.2% 5.5x 26.4x CoreLogic, Inc. 0.6% 6,891 1,806 443 24.5% 4.3% 1.5% 3.8x 15.5x LiveRamp Holdings, Inc. 22.1% 2,773 397 (119) NM 30.0% 33.2% 7.0x NM Daily Mail and General Trust plc (5.7%) 1,665 1,660 175 10.5% 4.0% 1.8% 1.0x 9.5x Value Line, Inc. (8.3%) 211 41 10 23.8% 11.1% 11.1% 5.1x 21.6x Mean $25,421 $2,800 $986 35.2% 9.6% 9.9% 8.6x 25.9x Median $19,504 $1,806 $888 49.2% 8.3% 9.6% 7.5x 25.0x
Source: S&P Capital IQ Quarterly Financial Technology Executive Briefing 23 Data & Analytics: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/24/20 Ripjar Long Ridge Equity Partners Raise $37M NA
9/10/20 EverCompliant Red Dot Capital Ventures Raise $35M NA
8/25/20 Redis Labs Bain Capital Ventures, TCV Raise $100M NA
8/5/20 Expert System Undisclosed Raise $29M NA
7/29/20 Tulco’s AI Insurance Business Acrisure M&A $400M NA
Pitango Venture Capital, Square Peg 7/28/20 ClimaCell Raise $23M NA Capital
7/24/20 Ansonia Credit Data Equifax M&A NA NA
7/23/20 Quantexa Evolution Equity Partners Raise $65M NA
Notable Transaction
Equifax Acquires Ansonia Credit Data1
Ansonia Credit Data is a leading credit reporting company offering business credit, collections, and account receivable data and decisioning tools. With more than $1.3T in accounts receivable data, Ansonia covers seven million businesses across more than 140 industries. Acquires
• Ansonia will be integrated into PayNet which primarily focuses on providing credit and analytics to SMEs and is part of Equifax’s USIS business unit h • Ansonia offerings complement Equifax’s commercial databases which will provide deeper insights to Equifax’s customer base and enable more effective financing decision-making • Ansonia provides an ample source of customized intelligence to meet the Undisclosed needs financing teams focused on the transportation and logistics industries July 24, 2020
1https://www.prnewswire.com/news-releases/equifax-expands-leadership-in-commercial-credit-data-solutions-with-acquisition-of-ansonia-301099299.html Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 24 Service Providers: Public Company Statistics
15.8x 3.5x 15.0x 16.0x 14.4x 14.0x 13.7x 14.1x 13.6x 13.9x 13.1x 13.7x 14.0x 3.0x 12.3x 12.7x 12.4x 12.1x 12.4x 12.1x 12.0x 11.9x 11.5x 11.7x 10.5x 11.3x 11.3x 12.0x 10.6x 11.1x 2.5x 10.3x 10.2x 2.6x 2.5x 10.0x 2.4x 2.4x 2.4x 2.4x 2.3x 2.3x 2.4x 2.3x 2.3x 2.3x 2.3x 2.3x 2.2x 2.3x 2.3x 2.0x 2.1x 2.1x 2.1x 2.2x 2.1x 2.1x 2.1x 2.1x 8.0x 1.9x 1.8x
1.5x 6.0x LTM Rev & EBITDA MultiplesEBITDA & Rev LTM
Enterprise Value / LTM Revenue Enterprise Value / LTM EBITDA
15.0%
10.0%
5.0%
0.0%
(5.0%)
LTM Rev Growth to EV / Rev Multiple / EV Growth Rev Rev LTM to (10.0%) 0.0x 1.0x 2.0x 3.0x 4.0x 5.0x 6.0x 7.0x
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin International Business Machines Corporation0.7% $163,505 $75,499 $15,577 20.6% (3.0%) (2.8%) 2.2x 10.5x Accenture plc 5.4% 138,032 44,327 8,287 18.7% 2.6% 4.4% 3.1x 16.7x Tata Consultancy Services Limited 19.7% 123,036 20,797 5,394 25.9% 4.5% 7.2% 5.9x 22.8x Infosys Limited 37.0% 55,764 12,770 3,121 24.4% 5.5% 8.3% 4.4x 17.9x Cognizant Technology Solutions Corporation22.4% 36,300 16,757 3,294 19.7% 1.8% 3.5% 2.2x 11.0x Capgemini SE 7.7% 30,426 16,542 2,085 12.6% 7.0% 7.0% 1.8x 14.6x HCL Technologies Limited 45.7% 29,684 9,928 2,459 24.8% 11.0% 15.1% 3.0x 12.1x Wipro Limited 42.7% 20,575 8,104 1,577 19.5% 3.2% 4.2% 2.5x 13.0x CGI Inc. 5.7% 19,723 8,967 1,571 17.5% 2.1% 4.2% 2.2x 12.6x Broadridge Financial Solutions, Inc. 4.4% 19,437 4,529 924 20.4% 3.8% (2.1%) 4.3x 21.0x DXC Technology Company 10.4% 13,051 19,189 2,927 15.3% (5.8%) (5.7%) 0.7x 4.5x Genpact Limited 6.9% 8,788 3,653 557 15.2% 11.6% 16.5% 2.4x 15.8x Computershare Limited (7.8%) 6,420 2,280 553 24.3% (3.4%) (0.0%) 2.8x 11.6x WNS (Holdings) Limited 16.8% 3,171 922 153 16.6% 11.8% 14.7% 3.4x 20.7x Mphasis Limited 56.2% 3,320 1,201 201 16.8% 13.7% 14.4% 2.8x 16.5x Mindtree Limited 44.6% 2,835 1,038 152 14.7% 8.6% 10.6% 2.7x 18.6x ExlService Holdings, Inc. 4.5% 2,277 977 131 13.4% 2.9% 9.0% 2.3x 17.4x Virtusa Corporation 51.2% 1,787 1,294 105 8.1% 2.2% 5.2% 1.4x 17.0x Crawford & Company (5.5%) 618 974 76 7.8% (4.8%) (4.7%) 0.6x 8.2x Mean $35,724 $13,145 $2,587 19.7% 4.0% 5.7% 2.7x 14.9x Median $19,437 $8,104 $1,571 19.4% 3.2% 5.2% 2.5x 15.8x
Quarterly Financial Technology Executive Briefing 25 Source: S&P Capital IQ Service Providers: Select Transactions
Q3 2020 Transactions Transaction Date Target Acquirer(s) / Lead Investor(s) Type EV / Revenue Value ($M)
9/11/20 Franco Signor Verisk M&A $160M NA
9/10/20 Virtusa Corporation Baring Private Equity Asia M&A $2,126M 1.6x
9/1/20 LeapFrog Systems Apex Systems M&A $72M NA
8/11/20 AKA Enterprise Solutions HSO M&A NA NA
Wavecrest Growth Partners, Citi Ventures, 8/3/20 Volante Technologies Raise $35M NA BNY Mellon, Visa
7/20/20 Alphaserve Technologies Eze Castle Integration M&A NA NA
7/14/20 ACA Compliance Group Starr Investment Holdings Raise $40M NA
7/8/20 Brookstone Capital Management FormulaFolios M&A NA NA
Notable Transaction
Verisk Acquires Franco Signor1
Franco Signor is a full-service provider of Medicare Secondary Payer compliance software and services. The company manages MSP compliance matters on workers’ compensation, no-fault, and liability claims and is based in Bradenton, FL. Acquires
• Franco Signor will be combined with Verisk’s Claims Partners business to enhance Verisk’s MSP compliance offering h • The combined company will offer the broadest range of services in the industry and support insurers, TPAs, and self-insureds through the entire life of a claim • Verisk’s powerful data & analytics capabilities will be able to increase the $160 Million quality of service brought by Franco Signor’s MSP expertise September 11, 2020
1https://www.globenewswire.com/news-release/2020/09/11/2092437/0/en/Verisk-Acquires-Franco-Signor.html Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 26 Traditional Financial Institutions
20.0x
5.0x 18.0x
16.0x
14.0x 4.0x 12.5x 11.9x 11.9x 11.4x 11.7x 11.5x 11.3x 11.3x 12.0x 10.8x 10.9x 10.7x 11.0x 10.5x 10.0x 11.1x 9.8x 9.9x 9.7x 9.4x 9.3x 9.6x 9.0x 9.2x 9.0x 9.0x 9.3x 8.8x 10.0x 3.0x 8.0x 2.9x 3.0x 2.9x 2.8x 2.6x 2.6x 2.7x 2.5x 6.0x 2.4x 2.3x 2.3x 2.4x 2.0x 2.3x 2.2x 2.3x 2.3x 2.3x 2.2x
2.2x 2.1x 2.1x 2.0x 2.2x 2.2x 4.0x LTM Rev & EBT EBT & MultiplesRev LTM 1.8x 1.8x 2.0x 1.5x 1.0x 0.0x
Market Capitalization / LTM Revenue Market Capitalization / LTM EBT Ex. Unusual Items
Notable Transaction
Acrisure Acquires Tulco’s AI Insurance Business1
Acrisure is the world’s fastest growing and a top 10 global insurance brokerage. The company, owned primarily by employees, has more than $2B Acquires in revenue and has locations in 37 states and six countries.
• Acrisure’s extensive agency network will allow Tulco’s leading AI and data science products to be distributed at scale • Acrisure and Tulco have been partnering since 2019 when they formed h Altway Insurance, a direct-to-consumer, AI-driven brokerage platform which has seen 10%+ week-over-week growth for 24 consecutive weeks Tulco’s AI Insurance • The company will be able to transform its product development and sales & Business marketing process with Tulco’s AI capabilities to accelerate growth $400 Million • The deal was structured as a stock-for-stock trade in which Tulco has become a significant minority shareholder in Acrisure July 29, 2020
1https://www.businesswire.com/news/home/20200729005582/en/Acrisure-Acquires-Tulco%E2%80%99s-Artificial-Intelligence-Insurance-Business Source: S&P Capital IQ and publicly available records
Quarterly Financial Technology Executive Briefing 27 Traditional Financial Institutions by Segment (1/2)
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Banks JPMorgan Chase & Co. 2.0% $290,589 $97,276 $31,217 32.1% (8.1%) (2.3%) 3.0x 9.3x Bank of America Corporation 1.1% 205,946 76,579 24,039 31.4% (13.0%) (7.5%) 2.7x 8.6x Wells Fargo & Company (8.6%) 95,832 62,657 4,428 7.1% (25.1%) (9.9%) 1.5x 21.6x Citigroup Inc. (15.9%) 88,313 59,087 16,282 27.6% (9.2%) (2.1%) 1.5x 5.4x HSBC Holdings plc (16.2%) 78,992 44,997 13,632 30.3% (15.8%) (4.3%) 1.8x 5.8x Morgan Stanley – 74,486 43,790 12,361 28.2% 12.4% 3.3% 1.7x 6.0x The Goldman Sachs Group, Inc. 1.5% 70,603 37,162 11,653 31.4% 8.2% 0.6% 1.9x 6.1x U.S. Bancorp (3.2%) 53,175 19,394 6,608 34.1% (8.0%) (0.9%) 2.7x 8.0x Mitsubishi UFJ Financial Group, Inc. (1.3%) 50,659 35,312 6,375 18.1% (1.7%) (1.5%) 1.4x 7.9x BNP Paribas SA (12.4%) 45,432 45,807 11,600 25.3% (2.0%) 1.3% 1.0x 3.9x The PNC Financial Services Group, Inc. 3.2% 45,392 14,182 3,739 26.4% (13.4%) 0.2% 3.2x 12.1x UBS Group AG (5.5%) 40,279 29,553 6,372 21.6% 1.2% 1.0% 1.4x 6.3x Mean $94,975 $47,150 $12,359 26.2% (6.2%) (1.8%) 2.0x 8.4x Median $72,545 $44,394 $11,627 26.2% (8.1%) (1.2%) 1.7x 7.1x Securities Broker Dealers The Charles Schwab Corporation 7.0% $46,108 $10,384 $4,345 41.8% (2.5%) 1.5% 4.4x 10.6x TD Ameritrade Holding Corporation 7.3% 20,956 5,792 2,639 45.6% 1.2% 1.1% 3.6x 7.9x Ameriprise Financial, Inc. 2.6% 18,086 12,211 2,784 22.8% (5.8%) (1.0%) 1.5x 6.5x MarketAxess Holdings Inc. (3.6%) 18,433 615 326 53.0% 32.6% 24.8% 30.0x 56.5x E*TRADE Financial Corporation 0.5% 10,725 2,895 1,201 41.5% (2.2%) (4.2%) 3.7x 8.9x Raymond James Financial, Inc. 5.2% 9,917 7,716 1,173 15.2% 1.7% 5.6% 1.3x 8.5x LPL Financial Holdings Inc. (2.4%) 6,014 5,693 691 12.1% 5.3% 7.5% 1.1x 8.7x Voya Financial, Inc. 1.9% 6,007 7,033 318 4.5% 2.3% 4.6% 0.9x 18.9x Virtu Financial, Inc. (2.5%) 2,827 2,389 911 38.1% 97.0% 57.1% 1.2x 3.1x TP ICAP plc (34.9%) 1,649 2,288 246 10.8% 6.6% 4.9% 0.7x 6.7x Waddell & Reed Financial, Inc. (4.7%) 956 1,045 146 14.0% (4.8%) (4.2%) 0.9x 6.6x Compagnie Financière Tradition SA 8.1% 917 1,003 92 9.2% 6.6% 5.3% 0.9x 9.9x BGC Partners, Inc. (13.5%) 860 2,065 121 5.9% 5.1% 9.9% 0.4x 7.1x Monex Group, Inc. 21.6% 643 488 50 10.2% 5.1% 1.5% 1.3x 12.9x Mean $10,293 $4,401 $1,075 24.4% 10.6% 8.2% 3.7x 12.3x Median $6,010 $2,642 $509 19.3% 3.7% 4.7% 1.2x 8.6x Investment Managers BlackRock, Inc. 3.7% $84,598 $15,027 $5,070 33.7% 8.3% 6.7% 5.6x 16.7x The Blackstone Group Inc. (7.5%) 36,463 2,983 923 30.9% (48.4%) (72.3%) 12.2x 39.5x The Bank of New York Mellon Corporation(11.6%) 30,004 16,469 5,517 33.5% 3.6% 2.6% 1.8x 5.4x T. Rowe Price Group, Inc. 3.8% 28,938 5,773 2,716 47.0% 6.5% 7.1% 5.0x 10.7x State Street Corporation (7.0%) 21,104 11,816 3,081 26.1% 0.1% (1.5%) 1.8x 6.8x Northern Trust Corporation (1.8%) 16,119 6,060 1,849 30.5% 1.3% 2.6% 2.7x 8.7x Amundi SA (13.6%) 14,204 5,310 1,367 25.7% 1.9% 1.0% 2.7x 10.4x Franklin Resources, Inc. (3.6%) 9,927 5,392 1,335 24.8% (7.8%) (4.2%) 1.8x 7.4x Invesco Ltd. 5.5% 5,248 6,481 1,509 23.3% 23.4% 25.7% 0.8x 3.5x Eaton Vance Corp. (1.1%) 4,164 1,713 358 20.9% 1.9% 2.7% 2.4x 11.6x Affiliated Managers Group, Inc. (8.5%) 3,166 2,083 405 19.4% (9.5%) (4.6%) 1.5x 7.8x Oppenheimer Holdings Inc. 3.2% 280 1,001 88 8.8% 7.5% 5.6% 0.3x 3.2x Mean $21,185 $6,676 $2,018 30.2% (0.9%) (2.4%) 3.2x 11.0x Median $15,162 $5,583 $1,438 25.8% 1.9% 2.6% 2.1x 8.3x
Source: S&P Capital IQ and publicly available records Quarterly Financial Technology Executive Briefing 28 Traditional Financial Institutions by Segment (2/2)
($M) LTM Performance Revenue Growth EV / Revenue EV / EBITDA YTD Price Enterprise EBITDA Company Revenue EBITDA 2020 2019 9/30/2020 9/30/2020 Change Value Margin Exchanges CME Group Inc. 2.6% $59,575 $5,109 $3,059 59.9% 11.3% 18.8% 11.7x 19.5x Hong Kong Exchanges and Clearing Limited9.6% 59,035 2,126 1,432 67.4% 1.7% 0.1% 27.8x 41.2x Intercontinental Exchange, Inc. 9.1% 55,659 5,588 2,816 50.4% 10.2% 9.4% 10.0x 19.8x London Stock Exchange Group plc 6.2% 40,280 2,983 1,093 36.7% 8.8% 8.6% 13.5x 36.8x Deutsche Börse AG (7.0%) 32,266 4,041 1,869 46.2% 12.9% 12.0% 8.0x 17.3x Nasdaq, Inc. 2.5% 19,938 4,913 1,166 23.7% 17.0% 9.9% 4.1x 17.1x B3 S.A. - Brasil, Bolsa, Balcão (0.1%) 19,378 1,263 771 61.1% 31.4% 26.2% 15.3x 25.1x Japan Exchange Group, Inc. 17.9% 14,910 1,181 660 55.9% 5.5% 2.1% 12.6x 22.6x Cboe Global Markets, Inc. (6.1%) 9,450 3,064 716 23.4% 20.4% 8.5% 3.1x 13.2x Euronext N.V. 19.8% 8,733 917 478 52.1% 31.5% 23.7% 9.5x 18.3x TMX Group Limited 2.0% 5,730 847 271 32.0% 4.5% 16.0% 6.8x 21.2x Mean $29,541 $2,912 $1,303 44.7% 14.1% 12.3% 11.1x 22.9x Median $19,938 $2,983 $1,093 36.7% 11.3% 9.9% 10.0x 19.8x Insurance Brokers Marsh & McLennan Companies, Inc. 6.8% $57,770 $17,072 $3,389 19.9% 9.2% 14.7% 3.4x 17.0x Aon Plc 7.2% 47,087 10,980 2,430 22.1% 1.0% 2.5% 4.3x 19.4x Willis Towers Watson Public Limited Company6.4% 26,814 9,258 1,410 15.2% 7.8% 7.7% 2.9x 19.0x Arthur J. Gallagher & Co. 8.1% 20,060 6,757 710 10.5% (0.7%) 0.3% 3.0x 28.2x Brown & Brown, Inc. 10.8% 12,775 2,489 625 25.1% 11.7% 15.8% 5.1x 20.4x eHealth, Inc. (20.4%) 1,961 567 103 18.2% 82.7% 96.3% 3.5x 19.1x Goosehead Insurance, Inc 15.0% 1,491 85 7 8.5% 16.3% 8.7% 17.6x NM Huize Holding Limited 6.4% 416 145 0 0.3% 31.7% 47.9% 2.9x NM DFV Deutsche Familienversicherung AG(13.1%) 347 65 (9) NM 28.7% 45.8% 5.3x NM Mean $18,747 $5,269 $963 18.3% 20.9% 26.6% 5.3x 20.5x Median $12,775 $2,489 $625 25.1% 11.7% 14.7% 3.5x 19.2x P&C Insurance Carriers The Progressive Corporation 17.5% $55,134 $40,545 $5,493 13.5% 15.0% 15.4% 1.4x 10.0x Chubb Limited (8.6%) 51,609 34,466 2,753 8.0% 5.2% 3.7% 1.5x 18.7x The Allstate Corporation (3.4%) 29,183 43,814 5,718 13.1% 4.1% 6.6% 0.7x 5.1x The Travelers Companies, Inc. (5.5%) 27,203 31,385 2,141 6.8% 1.2% 3.8% 0.9x 12.7x The Hartford Financial Services Group, Inc.(4.7%) 13,085 20,718 2,463 11.9% 6.3% 8.2% 0.6x 5.3x ZhongAn Online P & C Insurance Co., Ltd.(0.1%) 7,264 2,350 (48) NM 34.0% 44.2% 3.1x NM The Hanover Insurance Group, Inc. (8.3%) 3,470 4,753 353 7.4% 1.4% 2.3% 0.7x 9.8x Mercury General Corporation 1.0% 2,290 3,689 214 5.8% (0.5%) 1.3% 0.6x 10.7x State Auto Financial Corporation (23.8%) 608 1,352 (49) NM 2.6% (4.7%) 0.4x NM Mean $21,094 $20,341 $2,115 10.4% 7.7% 9.0% 1.1x 10.3x Median $13,085 $20,718 $2,141 10.3% 4.1% 3.8% 0.7x 10.0x Health / Life Insurance Carriers UnitedHealth Group Incorporated 5.5% $289,045 $247,811 $22,593 9.1% 5.1% 6.4% 1.2x 12.8x Anthem, Inc. 1.7% 65,339 112,965 7,832 6.9% 16.8% 15.9% 0.6x 8.3x Cigna Corporation (9.8%) 60,335 154,629 7,774 5.0% 50.8% 105.2% 0.4x 7.8x Humana Inc. 7.0% 53,115 70,554 4,863 6.9% 16.2% 15.3% 0.8x 10.9x Prudential plc (9.0%) 37,265 35,133 1,731 4.9% (48.4%) 24.7% 1.1x 21.5x MetLife, Inc. 1.3% 33,375 68,230 8,681 12.7% 3.8% 3.2% 0.5x 3.8x Aflac Incorporated 0.7% 25,679 21,708 3,883 17.9% (0.7%) (0.6%) 1.2x 6.6x Sun Life Financial Inc. 8.9% 23,759 29,257 2,119 7.2% 11.4% 7.3% 0.8x 11.2x Lincoln National Corporation (14.8%) 5,979 16,925 294 1.7% (0.8%) 5.6% 0.4x 20.3x Magellan Health, Inc. 4.3% 1,891 7,109 101 1.4% 19.0% 8.1% 0.3x 18.7x Mean $59,578 $76,432 $5,987 7.8% 7.3% 19.1% 0.7x 12.2x Median $35,320 $51,682 $4,373 8.5% 8.2% 7.7% 0.7x 11.1x Total Traditional Financial Institutions Mean $36,588 $22,524 $3,759 16.7% 7.1% 9.2% 3.9x 13.5x Median $20,956 $6,481 $1,509 23.3% 5.1% 4.9% 1.8x 10.5x
Source: S&P Capital IQ and publicly available records Quarterly Financial Technology Executive Briefing 29 MORGAN PARTNERS LLC MEMBER, FINRA/SIPC 100 WORCESTER STREET, SUITE 202 WELLESLEY, MA 02481 +1 (617) 410-5200 WWW.MORGANPARTNERS.COM
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Quarterly Financial Technology Executive Briefing 30