Click here to close now.


News Feed Item

Berkery Noyes Releases Financial Technology And Information Industry M&A Report For Full Year 2012

NEW YORK, Jan. 16, 2013 /PRNewswire/ -- Berkery Noyes, an independent mid-market investment bank, today released its full year 2012 mergers and acquisitions trend report for the Financial Technology and Information Industry.

The report analyzes M&A activity for the sector during 2012 and compares it with data covering 2010 and 2011. This market includes information and technology companies in Capital Markets, Payments, Banking, Insurance, and other related financial services.

Transaction volume underwent a seven percent increase over the past twelve months, from 282 transactions in 2011 to 302 transactions in 2012. Moreover, transaction value rose from $19.84 billion to $30.23 billion, an increase of 52 percent. The median revenue multiple improved from 2.6x to 2.9x, while the median EBITDA multiple increased from 11.5x to 11.9x.

IntercontinentalExchange's announced acquisition of NYSE Euronext for $10.19 billion was the largest 2012 transaction covered in the report. Regulators blocked several bids for NYSE Euronext in 2011, including a proposed merger with Deutsche Borse Group for $12.39 billion. The number of transactions in the Capital Markets segment decreased nine percent relative to 2011, which was similar to its 2010 volume.

"Algo trading software solutions present an opportunity for firms to improve execution quality and achieve higher commissions," said Peter Ognibene, Managing Director at Berkery Noyes. "There is also a push towards more transparency around high frequency trading to prevent flash crashes and similar incidents. Likewise, with the transformation of the derivatives market by regulations such as the Volcker rule, technology companies in the capital markets sector are still facing some elements of lingering uncertainty." Ognibene continued, "Businesses that are taking steps to adapt to the changing capital markets landscape are well situated to continue generating a healthy level of interest from acquirers."

M&A activity in the Payments segment improved at a robust pace in 2012, rising 47 percent from 2011. With this growth, Payments had a slight edge over Capital Markets as the most active segment in the report on a year-to-year basis. In addition, four of the industry's top ten highest value deals fell within the Payments segment, compared to two in 2011. These four transactions, with a combined value of $5.83 billion, represented 19 percent of the industry's 2012 aggregate deal value.

According to John Guzzo, Managing Director at Berkery Noyes, "There are significant changes occurring in the payments sector, which is drawing heightened attention from both strategic and financial acquirers. This includes the creation of enterprise payments hubs that can lower processing costs, as well as the more extensive use of mobile payments systems."

Guzzo added, "Heightened regulatory scrutiny and new legislation – particularly the CARD Act and Durbin Amendment – is also starting to have an impact on the sector, as new reporting and record keeping requirements come into effect. Some payments companies, responding in part to these regulations, will look to diversify their revenue streams by launching new products and services."

Deal flow in the Banking segment rose six percent relative to 2011. One evolving aspect of M&A in the segment, as highlighted by MasterCard's acquisition of Truaxis, is interest in automated loyalty marketing solutions that are being implemented by financial institutions. "From a commercial business standpoint, paper-to-electronic conversion and mobile check depositing for corporate customers is having a noticeable impact on the banking market," stated Managing Director Peter Ognibene. "Furthermore, with the proliferation of data over the past few years, software solutions focused on credit, loan, and deposit analysis are gaining in popularity."

A copy of the FINANCIAL TECHNOLOGY AND INFORMATION INDUSTRY M&A REPORT FOR FULL YEAR 2012 is available at the Berkery Noyes website.

Berkery Noyes specializes in mergers and acquisitions advisory, debt and equity financing, and financial consulting services for companies in the $10 million to $500 million range, a market that is enjoying a surge in activity. The firm's research teams publish acquisition activity in the respective sectors they follow on

­­­Contact Information:
Peter Wilson
Berkery Noyes
[email protected]

SOURCE Berkery Noyes

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
Culture is the most important ingredient of DevOps. The challenge for most organizations is defining and communicating a vision of beneficial DevOps culture for their organizations, and then facilitating the changes needed to achieve that. Often this comes down to an ability to provide true leadership. As a CIO, are your direct reports IT managers or are they IT leaders? The hard truth is that many IT managers have risen through the ranks based on their technical skills, not their leadership ab...
As organizations shift towards IT-as-a-service models, the need for managing & protecting data residing across physical, virtual, and now cloud environments grows with it. CommVault can ensure protection & E-Discovery of your data - whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise.
Today air travel is a minefield of delays, hassles and customer disappointment. Airlines struggle to revitalize the experience. GE and M2Mi will demonstrate practical examples of how IoT solutions are helping airlines bring back personalization, reduce trip time and improve reliability. In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect with GE, and Dr. Sarah Cooper, M2Mi’s VP Business Development and Engineering, explored the IoT cloud-based platform technologies driving t...
In his General Session at DevOps Summit, Asaf Yigal, Co-Founder & VP of Product at, explored the value of Kibana 4 for log analysis and provided a hands-on tutorial on how to set up Kibana 4 and get the most out of Apache log files. He examined three use cases: IT operations, business intelligence, and security and compliance. Asaf Yigal is co-founder and VP of Product at log analytics software company In the past, he was co-founder of social-trading platform Currensee, which...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...
Just over a week ago I received a long and loud sustained applause for a presentation I delivered at this year’s Cloud Expo in Santa Clara. I was extremely pleased with the turnout and had some very good conversations with many of the attendees. Over the next few days I had many more meaningful conversations and was not only happy with the results but also learned a few new things. Here is everything I learned in those three days distilled into three short points.
DevOps is about increasing efficiency, but nothing is more inefficient than building the same application twice. However, this is a routine occurrence with enterprise applications that need both a rich desktop web interface and strong mobile support. With recent technological advances from Isomorphic Software and others, rich desktop and tuned mobile experiences can now be created with a single codebase – without compromising functionality, performance or usability. In his session at DevOps Su...
As organizations realize the scope of the Internet of Things, gaining key insights from Big Data, through the use of advanced analytics, becomes crucial. However, IoT also creates the need for petabyte scale storage of data from millions of devices. A new type of Storage is required which seamlessly integrates robust data analytics with massive scale. These storage systems will act as “smart systems” provide in-place analytics that speed discovery and enable businesses to quickly derive meaningf...
In his keynote at @ThingsExpo, Chris Matthieu, Director of IoT Engineering at Citrix and co-founder and CTO of Octoblu, focused on building an IoT platform and company. He provided a behind-the-scenes look at Octoblu’s platform, business, and pivots along the way (including the Citrix acquisition of Octoblu).
In his General Session at 17th Cloud Expo, Bruce Swann, Senior Product Marketing Manager for Adobe Campaign, explored the key ingredients of cross-channel marketing in a digital world. Learn how the Adobe Marketing Cloud can help marketers embrace opportunities for personalized, relevant and real-time customer engagement across offline (direct mail, point of sale, call center) and digital (email, website, SMS, mobile apps, social networks, connected objects).
The buzz continues for cloud, data analytics and the Internet of Things (IoT) and their collective impact across all industries. But a new conversation is emerging - how do companies use industry disruption and technology enablers to lead in markets undergoing change, uncertainty and ambiguity? Organizations of all sizes need to evolve and transform, often under massive pressure, as industry lines blur and merge and traditional business models are assaulted and turned upside down. In this new da...
In recent years, at least 40% of companies using cloud applications have experienced data loss. One of the best prevention against cloud data loss is backing up your cloud data. In his General Session at 17th Cloud Expo, Sam McIntyre, Partner Enablement Specialist at eFolder, presented how organizations can use eFolder Cloudfinder to automate backups of cloud application data. He also demonstrated how easy it is to search and restore cloud application data using Cloudfinder.
The Internet of Everything is re-shaping technology trends–moving away from “request/response” architecture to an “always-on” Streaming Web where data is in constant motion and secure, reliable communication is an absolute necessity. As more and more THINGS go online, the challenges that developers will need to address will only increase exponentially. In his session at @ThingsExpo, Todd Greene, Founder & CEO of PubNub, exploreed the current state of IoT connectivity and review key trends and t...
Two weeks ago (November 3-5), I attended the Cloud Expo Silicon Valley as a speaker, where I presented on the security and privacy due diligence requirements for cloud solutions. Cloud security is a topical issue for every CIO, CISO, and technology buyer. Decision-makers are always looking for insights on how to mitigate the security risks of implementing and using cloud solutions. Based on the presentation topics covered at the conference, as well as the general discussions heard between sessi...