financial technology sector review | q3 2019...• the banking and insurance industries continue to...

FINANCIAL TECHNOLOGY SECTOR REVIEW | Q3 2019

T E C H N O L O G Y , M E D I A & T E L E C O M PAGE | 1


[email protected]

Office: (415) 217-3418

O B S E R V A T I O N S O N K E Y F I N T E C H T R E N D S

• The financial technology market continues to attract strong interest from financial investors and strategic acquirers alike, with 700+ M&A transactions completed in the last 12 months globally

• Consolidation has accelerated as the sector matures and is expected to continue as fintech market leaders reach scale and look to pursue inorganic add-on opportunities

• Blackstone’s announced sale of Refinitiv to the London Stock Exchange – less than a year after Blackstone carved the platform out of Thomson Reuters –serves to highlight how financial network providers continue to focus on delivering improved decision-making capabilities while further monetizing proprietary data assets derived from their clients’ network activities

• The immediate-term viability of digital currencies and mainstream blockchain technology applications are called into question with PayPal, Visa, Mastercard, Stripe, and eBay all leaving Facebook’s Libra consortium simultaneously in late Q3 as the platform faces significant regulatory constraints

• Technology companies are increasingly seeking to integrate billing and payments directly into their solutions to both improve end-user experience and to capture incremental economics from payment processing

• Corporations globally are eager to optimize B2B transactions and are investing in cloud-based software solutions that improve procurement, AP automation, supply chain finance, and settlement activities, as well as working capital exchanges that enhance profitability

• The banking and insurance industries continue to evolve as financial institutions increasingly adopt modern SaaS software solutions to defend against competitive unbundled offerings, improve operational workflows, and enhance client experience across business lines

• Consumer adoption of digital and mobile payment and financial services solutions has accelerated globally as the proliferation of smartphones, digital currency, and digital native banks make online transaction increasingly frictionless, secure, and convenient

H A R R I S W I L L I A M S ( “ H W ” ) A S A F I R MT E C H N O L O G Y , M E D I A & T E L E C O M ( “ T M T ” ) G R O U P

• Founded in 1991

• 360+ professionals across eight offices globally

• 170+ closed transactions in the last 24 months

• 21st record year in 2018

• 10 industry groups

• 35+ professionals across Boston, San Francisco, and London

• 42 closed transactions in the last 24 months

Managing [email protected]

Office: (415) 217-3411


Office: (617) 654-2117


Office: +44 (0) 20 7518 8901


Office: (617) 654-2133

[email protected]: +44 (0) 20 7518 8909

[email protected]

Office: (617) 654-2115

2017

2017

• Architecture, Engineering, and Construction

• eCommerce and Retail Software• Education Technology• Energy Technology• Facilities and Real Estate

Technology• Financial Technology• Government Technology• Healthcare IT• Industrial and Supply Chain

Software

• Compliance Software• CRM and Member Management

Software• Data and Analytics• Enterprise Software• Human Capital Management• Infrastructure and Security

Software• IT and Tech Enabled Services• Managed Services, Hosting, Data

Center Solutions• Online Marketing, Data, and

Research

[email protected]

Office: (415) 217-3420

[email protected]

Office: (617) 654-2122

mailto:[email protected]











has been acquired by

Provider of integrated SaaS, insurance, and payments solutions for residential and commercial property managers

has received a majority

investment from

Provider of youth sports management software and integrated payments solutions


Provider of integrated SaaS civic engagement and payment solutions for government entities

&

S E L E C T R E C E N T H W F I N A N C I A L T E C H N O L O G Y T R A N S A C T I O N S

Select Market Participants Select Market Participants Select Market Participants

Solutions focused on supporting B2C and B2B

payments and financial activity, and serving the financial needs

of enterprises of all sizes

Solutions focused on delivering improved financial and payment experiences,

personal wealth management, and access to consumer loans

Solutions focused on serving the specific operational and compliance needs of banks, insurance companies, and

asset managers

PAYMENTS B2B TRANSACTIONS FINANCIAL SOFTWARE BANKING INSURANCE ASSET MGMT. / TRADING PAYMENTS PERSONAL FINANCE INVESTING


Provider of member management software and payment processing solutions for fraternal organizations and non-profits

has received a strategic

investment from

Provider of next generation integrated digital government software and payment solutions, designed to improve government operations, revenue collection, and citizen engagement


Provider of eLearning, workforce management, and compliance solutions to enterprises and professionals across financial services, healthcare, and real estate


Provider of integrated software, data and analytics solutions to the global energy market including financial services, capital markets, and trading and risk professionals


Provider of mental and behavioral health practice management, revenue cycle management, billings, and integrated payment processing solutions&

has acquired

Provider of a SaaS platform serving single family and condo high rise associations with unified property management, resident portals, accounting, payments, and security solutions

has acquired

Provider of integrated risk management, policy administration, and insurance claims management software solutions



Government agencies are under increasing pressure to modernize their IT systems, especially those serving today’s digital consumers. That’s opening up a $93 billion opportunity for technology vendors, and for the strategic buyers and financial investors that understand the space.

In this article, Managing Director Tyler Dewing and Vice President Scott Reinig, both of the Harris Williams Technology, Media & Telecom (TMT) Group, explain the key drivers of this shift and reveal one specific area creating noteworthy growth opportunities.

has received a strategic investment

from


“Modernizing payments is a quick win for both government agencies and technology vendors,” says Dewing. “For agencies, it delivers an almost instant and significant operational efficiency boost for employees and service improvement for the generalpublic—without requiring a big-budget purchase. For vendors, it creates an attractive revenue model and enables those with a

broad suite of solutions to get a foot in the door.”




has acquired

HW’s TMT Group advised Tailwind Capital on its acquisition of Ventiv Technology.

Ventiv Technology is a leading provider of integrated risk management, policy administration, and insurance claims management software solutions that simplify and optimize risk and compliance management processes across organizations

Leveraging a highly scalable and uniquely configurable SaaS platform, the Company serves a diverse base of over 600 enterprise customers including self-insured corporations, public entities, and insurance carriers across multiple industry verticals

The Company’s claims management and policy administration solutions continue to benefit from double digit growth in investments by insurance carriers and self-insured corporations to manage claims costs and streamline policy administration processes


Office: (617) 654-2133

Vice [email protected]

Office: (617) 654-2113

[email protected]

Office: (415) 217-3418






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S&P 500 Payment Networks

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July 1, 2019

Capital Raised: $17.5M

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August 27, 2019

Enterprise Value: NA

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Enterprise Value /

LTM Rev. LTM EBITDA 2019E EBITDA

11.2x 27.6x 25.2x

Enterprise Value /


10.7x 36.9x 19.4x

Enterprise Value /


3.8x 11.5x 10.3x

Enterprise Value /


7.1x 21.3x 18.7x

Enterprise Value /


9.2x 19.3x 26.8x


Alternative Data in Payments Processing

Mastercard Launches A New B2B Effort To Displace Checks

Neutralizing The Clash Of The B2B Buyer And Supplier Titans

Alternative Data Meets Fintech

Payroll Moves From Administrative Task To Employee Experience

Payment networks that facilitate next generation payment channels continue to benefit from accelerating migration of payments to digital environments

Payment networks are increasingly focused on enhancing their solution offering to deliver fast, frictionless, and secure payment processing as they seek to grow across end-markets and geographies

The traditional payment processing landscape is undergoing significant change as incumbents seek to maintain market share through consolidation and expansion of service and technology capabilities that improve customer experience

As payments continue to shift to digital platforms, software providers are keen to improve their competitive position by incorporating processing functionality directly into their solutions

B2B payments continue to be a key focus area for businesses globally as supply chain management can greatly benefit from software, driving demand for solutions that improve operations and reduce payment friction

Businesses continue to adopt solutions that improve collections and settlement, increase transparency across their entire ecosystem, and improve regulatory compliance and documentation

As financial services become increasingly digital, industries continue to implement stringent compliance requirements that are driving the adoption of software solutions to automate data collection and meet compliance demands

Heightened awareness of and focus on privacy and data protection in the digital age is driving the need for innovative solutions that offer security and improved visibility

Enterprises across all markets continue to transition from legacy offerings to cloud-based solutions that improve operational efficiency and are capable of delivering solutions to evolving industries and changing work environments

Incumbents and challengers alike continue to be acquisitive of solutions that expand their TAM and enable them to offer more integrated workforce management and benefits administration across industries

https://insidebigdata.com/2019/09/18/alternative-data-in-payments-processing-the-nextgen-payments-trend-increasing-customer-and-retailer-loyalty/

https://www.forbes.com/sites/tomgroenfeldt/2019/09/16/mastercard-launches-a-new-b2b-effort-to-displace-checks/#3ba09523e971

https://www.pymnts.com/news/b2b-payments/2019/neutralizing-the-clash-of-the-b2b-buyer-and-supplier-titans/

https://dataconomy.com/2019/08/how-alternative-data-is-used-in-fintech/

https://www.pymnts.com/news/b2b-payments/2019/salarium-payroll-experience-fraud-errors/



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Enterprise Value: $850M

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Price /

2019E Book Value 2020P Book Value

1.0x 1.0x

June 24, 2019

July 15, 2019

Capital Raised: $47.5M

August 27, 2019

Capital Raised: $80M

September 4, 2019

Capital Raised: $25M

Capital Raised: $250MHow the banking sector is using RPA software

Insurtech funding surpassed $3bn in 2018

AI, automation and applications — how firms are innovating

As The Wind Blows, The Shift From Paper To P2P Payments Builds

Failed promise of marketplace lending faces a new test

Traditional financial institutions continue to acquire, partner, and implement next-generation technology solutions across back-, middle-, and front-office functions to compete with specialized software upstarts

Digital-native banking platforms that offer consumers with flexible and convenient products are gaining prominence, putting additional pressure on incumbents, particularly as consumer loyalty remains low

Insurance carriers are increasingly focused on digitizing the customer journey to enable personalized and contextual interactions with policyholders and prospects across all channels and at a lower cost

Similar to the disruption occurring in the banking sector, digital-native and vertical-specific platforms continue to attract customers and put increasing pressure on traditional insurance providers

AMT organizations continue to seek software solutions that enhance research capabilities through data and analytics, improve liquidity and access to capital, and streamline investor relations functions and customer engagement

Wealth managers and financial advisors continue to use partnerships and M&A to fend off online investment platforms and robo-advisors

Consumer utilization of peer-to-peer payment solutions—especially those facilitated through mobile platforms—has given rise to a number of innovative offerings and has forced incumbents to acquire or launch frictionless solutions to keep pace

Growing demand for peer-to-peer transfers continues to drive down costs as solutions providers of all scale compete to monetize rapidly growing payment volumes

Persistently low cost of capital has enabled traditional lenders to maintain competitiveness, forcing challengers to find unique ways to differentiate their offerings such as rapid and differentiated credit decisioning, alternative funding sources, and new product offerings

Marketplace lending has become increasingly specialized as niche players offering vertical specific solutions have successfully attracted new customers, despite being in the early stages of maturity

https://techhq.com/2019/09/how-the-banking-sector-is-using-rpa-software/

https://www.finextra.com/newsarticle/34338/insurtech-funding-surpassed-3bn-in-2018

https://www.financial-planning.com/news/artificial-intelligence-automation-and-applications-how-asset-management-firms-are-leveraging-new-technology

https://www.pymnts.com/digital-payments/2019/as-the-wind-blows-the-shift-from-paper-to-p2p-payments-builds/

https://www.ft.com/content/d1d7cc8e-dbb6-11e9-8f9b-77216ebe1f17



• Talech is a leading provider of operational, business management, and point-of-sale software solutions tailored for restaurants, professional services providers, and retailers

• Talech serves over 8,000 small- and medium-sized merchants and processes over $2.3 billion in customer payments through its platform annually

• US Bank’s acquisition of Talech increases it’s footprint with and access to SMBs and will enable the financial services provider to better deliver data-driven solutions and consumer insights to merchants


Rev: NA EV / EBITDA: NA

EV / Rev: NA

Payment Processing

• iPipeline is a leading provider of cloud-based software solutions for the life insurance and financial services industry that simplifies sales, compliance, and operations

• iPipeline’s solutions connect and facilitate transactions between approximately 150 insurance carriers, 1,350 distributors and financial institutions, and their respective agents and advisors

• Roper’s acquisition represents a continuation of its successful strategy to acquire vertical-specific software solutions and help fuel their growth as standalone operating companies

Enterprise Value: $28.3B


EV / Rev: NA

• Refinitiv is a leading provider of financial data and analytics software and risk management solutions for financial institutions and investors

• Refinitiv serves over 40,000 institutions in approximately 190 countries across the globe, representing over 400,000 end-users and over $1T in bond and FX trade facilitation

• The acquisition, which comes less than a year after Thomson Reuters sold a majority stake in Refinitiv, will enable LSE to better monetize the wealth of data generated through the exchange leveraging Refinitiv’s analytics and distribution capabilities

Enterprise Value: $1.6B


EV / Rev: NA

Insurance

• AltaReturn is a leading developer of investment management and reporting software, including fund management, CRM, and portfolio monitoring solutions for the alternative investment industry

• AltaReturn, founded in 2008, scaled rapidly to deliver cloud-based software to some of the leading venture capital and private equity firms across the globe

• Vista will combine AltaReturn with existing portfolio company, Black Mountain Systems, to form Allvue and will collectively serve investors representing $2.5 trillion in assets and 90,000 limited partners

Enterprise Value: $500M


EV / Rev: NA

Asset Management and Trading

• Nets, headquartered in Denmark, provides an array of financial services and payment processing solutions to merchants and banks, including over 700,000 merchants, 260,000 enterprises, and 250 banks across Europe

• The acquisition represents Mastercard’s largest transaction in its history and will broaden its solution offering and capabilities within electronic billing, clearing, and most notably instant payment services and real-time transfersEnterprise Value: $3.2B


EV / Rev: NA

Payment Networks

Asset Management and Trading



40 42 40 2944 41 35

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• The 10 most active strategic fintechconsolidators have acquired over 109 companies since 2015.

• This group completed 19 fintech acquisitions in 2019 YTD, with deal volume continuing to gain momentum through Q3.

MOST ACTIVE STRATEGIC ACQUIRERS OF FINTECH ASSETS BY VOLUME2

GLOBAL FINANCIAL SOFTWARE M&A ACTIVITY2

• Across financial software, there were 126 M&A transactions closed in Q3 2019, with private equity transactions representing 32% of total deal volume.

• Strategic acquirers continue to outpace Private Equity as the race for wallet-share and additional payment volumes remains front of mind for many decision-makers.



–R E P R E S E N T A T I V E E N T E R P R I S E & C O M M E R C I A L S O L U T I O N P R O V I D E R S

P A Y M E N T SO T H E R E & C F I N A N C I A L

S O F T W A R E

S E E N E X T P A G E F O R V E R T I C A L

P A Y M E N T S M A R K E T M A P D E T A I L

To receive the latest Financial Technology market maps, please contact HW at [email protected]




Automatic Data Processing ADP $70,312 $70,008 92.5% 7.1% 83.0% 5.2% 6.6% 25.0% 4.8x 4.5x 19.3x 17.5x 42.8x

Paychex PAYX $29,727 $29,643 93.6% 12.4% 43.0% 14.9% 5.5% 40.4% 7.4x 7.0x 18.3x 16.8x 28.6x

Paycom Software PAYC $12,043 $12,077 80.7% 34.8% 317.9% 28.8% 23.4% 42.1% 16.5x 13.4x 39.3x 32.0x 92.7x

Paylocity PCTY $5,018 $5,180 86.8% 21.5% 119.5% 23.0% 19.6% 28.4% 9.8x 8.2x 34.4x 28.3x 123.1x

Thomson Reuters TSX:TRI $34,862 $33,522 93.9% 33.2% 46.9% 7.8% 4.6% 24.5% 5.9x 5.6x 24.0x 18.2x NM

Moody's MCO $43,648 $38,754 91.9% 22.5% 89.2% 5.4% 5.6% 47.7% 9.3x 8.8x 19.5x 18.1x 28.9x

Experian LSE:EXPN $31,945 $28,798 98.4% 24.4% 59.0% 4.4% 7.8% 33.8% 6.4x 5.9x 18.9x 17.4x 31.2x

TransUnion TRU $19,138 $15,232 94.9% 10.2% 135.1% 13.9% 8.3% 39.2% 7.3x 6.7x 18.5x 16.9x 50.3x

Equifax EFX $19,891 $17,005 94.7% 7.7% 4.5% 1.9% 5.8% 34.0% 5.7x 5.4x 16.8x 15.4x NM

Visa V $384,727 $373,748 92.0% 14.6% 108.0% 10.9% 11.3% 70.2% 16.3x 14.7x 23.3x 20.5x 35.9x

Mastercard MA $277,349 $275,524 92.5% 22.0% 166.8% 12.5% 13.2% 60.6% 16.5x 14.6x 27.2x 23.5x 44.2x

American Express AXP $132,460 $98,134 91.4% 11.1% 84.7% 17.8% 7.7% 0.0% 3.0x 2.8x NA NA 15.7x

Discover Financial Services DFS $41,219 $25,806 87.2% 6.1% 43.4% 48.9% 5.1% 0.0% 3.6x 3.4x NA NA 9.6x

Fidelity National Information Services FIS $90,360 $81,441 93.9% 21.7% 72.3% 22.2% 31.5% 42.1% 8.8x 6.7x 20.9x 15.1x 49.8x

Fiserv FISV $76,125 $70,409 94.2% 25.7% 108.3% 78.4% 56.2% 37.8% 7.3x 4.7x 19.4x 12.6x 37.6x

Alliance Data Systems ADS $27,279 $5,900 53.2% (45.7%) (40.3%) NA NA 25.7% 4.7x 4.5x 18.4x 16.8x 7.9x

Global Payments GPN $53,055 $47,708 90.4% 24.8% 107.1% 64.3% 67.6% 34.7% 9.6x 5.7x 27.6x 15.3x 53.7x

Cielo BOVESPA:CIEL3 $8,020 $5,210 58.4% (37.3%) (77.0%) (11.4%) (0.0%) 26.4% 3.0x 3.0x 11.3x 11.1x 6.3x

Euronet Worldwide EEFT $7,906 $7,971 85.4% 46.0% 78.8% 11.4% 11.6% 21.8% 2.8x 2.5x 12.8x 11.0x 38.5x

Western Union WU $11,949 $9,822 96.2% 21.6% 11.3% (4.8%) (0.5%) 24.5% 2.2x 2.3x 9.2x 8.9x 11.0x

Open Text Corporation OTEX $12,662 $10,986 91.7% 7.3% 25.8% 3.3% 2.6% 37.8% 4.3x 4.2x 11.4x 10.7x 40.4x

Cass Information Systems CASS $606 $782 89.0% (0.5%) 25.8% NA NA NA NA NA NA NA 23.8x

Basware HLSE:BAS1V $390 $345 52.9% (42.0%) (45.8%) (1.6%) 7.9% NM 2.4x 2.3x NM 21.0x NM

FleetCor Technologies FLT $28,352 $24,826 94.1% 25.9% 65.1% 9.2% 10.2% 57.4% 10.7x 9.7x 18.6x 16.4x 31.7x

WEX WEX $11,127 $8,745 91.2% 0.7% 86.9% 16.2% 11.3% 40.7% 6.4x 5.8x 15.7x 13.6x 68.7x

–

VALUATION1

($ in millions)

B 2 B T R A N S A C T I O N S

P A Y M E N T S

F I N A N C I A L S O F T W A R E

As of September 30th, 2019



09/24/2019 Tipalti Group 11, Zeev Ventures Provider of a cloud-based accounts payable automation platform. $76

09/24/2019 Fundbox Allianz X Provider of a B2B payments and credit network. $326

09/24/2019 CrossBorder Solutions Insight Partners Provider corporate tax software and services. $40

09/19/2019 Stripe Sequoia Capital, General Catalyst Provider of tools that enable businesses to accept and manage online payments. $250

09/18/2019 TouchBistro Information Venture, BDC Capital, BMO Capital Provider of a point-of-sale software designed to serve restaurants to run businesses. $119

09/10/2019 QuintoAndar SoftBank Group Provider of an online marketplace for long-term residential rentals in Brazil. $250

09/09/2019 Spendesk SAS Index Ventures Provider of prepaid cards for employees to pay for their offline expenses. $39

08/27/2019 Recurly Polaris Partners Provider of a subscription billing services platform for recurring billing automation. $20

08/07/2019 Freshbooks JPMorgan Chase & Co. Provider of small business accounting software. NA

08/07/2019 SpotHero Macquarie Capital, Insight Venture Provider of mobile parking application. $50

08/07/2019 C2FO SoftBank Group Provider of a working capital marketplace platform. $200

08/06/2019 TickPick Perella Weinberg Partners Provider of an online ticketing marketplace to buy and sell tickets. $40

07/23/2019 EverCommerce Silver Lake Management Provider of electronic payment applications for small and mid-sized businesses. NA

07/22/2019 Human Interest U.S. Venture Partners Provider of an online and automated 401(k) filing services for small businesses in the US. $15

07/16/2019 Finix Payments Insight Partners, Bain Capital, Visa Provider of payment infrastructure-as-a-service solutions to software vendors. $18

09/13/2019 RITEQ Ceridian Provider of enterprise workforce management solutions. NA

09/09/2019 Talech U.S. Bancorp Provider of software that connects the small merchant to their customers. NA

08/27/2019 WebPT Warburg Pincus Provider of electronic medical record and practice management solutions. NA

08/27/2019 BankTEL Systems AdidXchange Provider of financial accounting and cash management software. NA

08/22/2019 Blue Sombrero/Affinity Sports Stack Sports Provider of integrated software solutions to state youth and adult soccer associations in the US. $45

08/21/2019 Oil & Gas Systems Quorum Software Provider of cloud-based oil and gas accounting software for small and mid-sized businesses. NA

08/15/2019 Jaggaer Cinven Provider of web-based e-procurement, supply chain, and materials management software. $1,600

08/14/2019 TriSource Solutions REPay Provider of electronic payment processing solutions. $65

08/06/2019 Nets Holding Mastercard Incorporated Provider of clearing and instant payment services and account-to-account payments platform. $3,194

07/31/2019 Leverton MRI Software Provider of computational-linguistic software to process and manage contracts. NA

07/31/2019 ProLease MRI Software Provider of real estate lease administration and accounting software. NA

07/17/2019 Payworks Visa Provider of payment gateway software for point of sale applications. NA

07/12/2019 Ticketbooth Patron Technology Provider of online platform for buying and selling event tickets. NA

07/08/2019 Sole Financial FleetCor Technologies Provider of customizable payroll cards to facilitate instant wage access for workers. NA

06/27/2019 WageWorks HealthEquity Provider of tax-advantaged health care and benefits programs in the United States. $2,000

–

SELECT RECENT M&A TRANSACTIONS1

SELECT RECENT PRIVATE PLACEMENT TRANSACTIONS2



–R E P R E S E N T A T I V E I N S T I T U T I O N A L S O L U T I O N P R O V I D E R S





RELX LSE:REL $54,342 $45,998 95.3% 12.7% 24.8% 2.5% 5.0% 35.8% 5.6x 5.3x 15.5x 14.7x 26.7x

Thomson Reuters TSX:TRI $34,862 $33,522 93.9% 33.2% 46.9% 7.8% 4.6% 24.5% 5.9x 5.6x 24.0x 18.2x NM

Moody's MCO $43,648 $38,754 91.9% 22.5% 89.2% 5.4% 5.6% 47.7% 9.3x 8.8x 19.5x 18.1x 28.9x

SS&C Technologies Holdings SSNC $21,197 $13,086 76.1% (9.3%) 60.4% 34.5% 3.5% 39.2% 4.6x 4.5x 11.8x 11.1x 111.5x

MSCI MSCI $20,437 $18,443 88.0% 22.7% 159.4% 7.6% 8.6% 54.0% 13.2x 12.2x 24.5x 22.2x 36.8x

FactSet Research Systems FDS $9,484 $9,295 79.6% 8.6% 49.9% 5.7% 4.0% 35.7% 6.5x 6.3x 18.3x 18.0x 32.0x

Fair Isaac Corporation FICO $9,514 $8,771 81.3% 32.8% 143.6% 10.1% 9.1% 29.4% 8.1x 7.5x 27.7x 25.4x 63.4x

Broadridge Financial Solutions BR $15,417 $14,220 90.8% (5.7%) 83.6% 2.4% 5.4% 21.5% 3.5x 3.3x 16.2x 14.9x 30.1x

Envestnet ENV $3,584 $2,959 76.7% (7.0%) 55.6% 10.5% 15.3% 21.4% 4.0x 3.5x 18.7x 15.2x NM

Guidewire Software GWRE $7,840 $8,656 93.0% 4.3% 75.7% (3.7%) 15.1% 20.1% 11.0x 9.6x NM NM 144.7x

Ebix EBIX $2,029 $1,284 52.6% (46.8%) (25.9%) 18.8% 20.2% 34.7% 3.4x 2.9x 9.9x 9.4x 17.0x

Sapiens International SPNS $1,030 $982 99.4% 48.7% 53.8% 11.1% 9.2% 16.8% 3.2x 2.9x 19.0x 16.6x 51.9x

Temenos SWX:TEMN $12,395 $11,846 90.5% 2.6% 165.2% 20.2% 22.5% 39.3% 12.3x 10.0x 31.2x 26.1x 72.4x

Jack Henry & Associates JKHY $11,146 $11,240 90.1% (8.8%) 70.6% 0.5% 6.8% 32.2% 6.9x 6.5x 21.6x 19.9x 35.8x

CoreLogic CLGX $5,526 $3,708 93.2% (6.4%) 18.0% (3.1%) (0.4%) 27.8% 3.2x 3.2x 11.5x 10.8x 35.7x

ACI Worldwide ACIW $4,990 $3,656 87.4% 11.3% 61.6% 30.7% 14.8% 27.5% 3.8x 3.3x 13.8x 11.6x 63.9x

Oracle Financial Services Software BSE:532466 $3,372 $3,855 77.1% (16.8%) (7.3%) 2.5% 6.7% 45.7% 4.7x 4.5x 10.4x 9.5x 19.7x

Q2 Holdings QTWO $3,586 $3,757 84.2% 30.3% 175.2% 30.3% 22.2% 6.4% 11.4x 9.3x NM NM NM

Bottomline Technologies EPAY $1,738 $1,726 53.1% (45.9%) 68.8% 3.6% 9.0% 22.8% 4.0x 3.7x 17.7x 15.6x 105.9x

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VALUATION1

($ in millions)

B A N K I N G

I N S U R A N C E

A S S E T M A N A G E M E N T & T R A D I N G




09/25/2019 Verafin Spectrum Equity Provider of cloud-based fraud detection and anti-money laundering software. $390

09/17/2019 Biproxi RPM Ventures, Greycroft Provider of an online commercial real estate marketplace for brokers, buyers, and tenants. $10

09/17/2019 Vouch Insurance Ribbit Capital, SVB Financial Group Provider of business insurance to startups. $25

09/17/2019 Trulioo Goldman Sachs Provider of an electronic identity and address verification platform. $53

09/09/2019 MAPAL Software S.L. Providence Strategic Growth Provider of management and business analytics for restaurants and retail. $0

09/04/2019 Kasisto Rho Capital, Oak HC/FT Provider of a digital experience platform for the financial services industry. $15

08/28/2019 Numerated Growth Technologies Patriot Financial Partners Provider of real-time lending and growth automation platform for the banking industry. $15

08/13/2019 Long-Term Stock Exchange Founders Fund Provider of fund-raising, runway planning, and cap table management solutions. $50

08/06/2019 Dough Tastytrade Provider of financial consulting and brokerage services. $20

07/22/2019 Atom Bank Banco Bilbao Vizcaya Argentaria Provider of a mobile-only bank intended to offer internet banking services. $63

07/21/2019 Robinhood Financial DST Global Provider of online and mobile application-based discount stock brokerage services to investors. $323

07/18/2019 N26 Insight Partners Provider of mobile banking services. $470

07/18/2019 ARMCO New Capital Partners Provider of quality assurance software for the financial services industry. NA

07/16/2019 Curve Gauss Ventures Provider of banking applications to consolidate all cards and accounts into one smart card. $55

07/15/2019 BriteCore Warburg Pincus Provider of software solutions for insurers. $48

09/25/2019 Temenos Kony Provider of digital banking solutions. $580

09/20/2019 StatPro Group Confluence Technologies Provider of software and data solutions to the asset management industry. $239

09/06/2019 AltaReturn Vista Equity Partners Provider of investment management and reporting software for alternative investments. $500

09/04/2019 Assurance IQ Prudential Financial Provider of personalized insurance advisory services. $3,500

09/03/2019 Financial Database Services Broadridge Financial Solutions Provider of compensation management, compliance and advisor onboarding solutions. NA

09/03/2019 Ventiv Technology Tailwind Capital Provider of integrated risk management, policy administration, and claims management software. NA

08/13/2019 RegTek Solutions Bloomberg Provider of control and compliance software solutions for global trade and transaction reporting. NA

08/13/2019 LiquidityEdge MarketAxess Holdings Provider of a security trading platform for U.S. Treasuries. $150

08/08/2019 iPipeline Roper Provider of a cloud-based software platform for insurance sales and distribution. $1,625

08/01/2019 Refinitiv US Holdings London Stock Exchange Group Provider of data, analytics, trading, and risk assessment tools for the global financial markets. $28,292

07/25/2019 Risk First Moody's Corporation Provider of risk analytics and reporting solutions to the pensions and investment markets. NA

07/24/2019 Four Twenty Seven Moody's Investors Service Provider of climate research and risk management solutions. NA

07/18/2019 JHC Systems FNZ (UK) Provider of wealth management software and services. NA

07/16/2019 Moody's Analytics Knowledge Services Equistone Partners Europe Provider of research, analytics and automation technology to the financial services sector. NA

07/16/2019 First Associates Stone Point Capital Provider of consumer and commercial loan services. NA

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–R E P R E S E N T A T I V E C O N S U M E R S O L U T I O N P R O V I D E R S





Intuit INTU $66,860 $69,164 89.9% 16.9% 141.7% 13.2% 11.0% 35.5% 9.5x 8.5x 26.7x 23.4x 50.6x

Apple AAPL $1,025,965 $1,012,161 95.9% (0.8%) 98.1% (0.3%) 6.7% 29.0% 3.9x 3.7x 13.6x 13.0x 16.7x

Amazon AMZN $888,829 $858,678 85.3% (13.3%) 107.3% 19.8% 18.8% 14.9% 3.2x 2.7x 21.4x 16.9x 79.1x

Microsoft MSFT $1,014,174 $1,061,551 97.7% 21.6% 141.4% 11.8% 11.3% 43.6% 7.7x 6.9x 17.6x 15.7x 29.8x

Facebook FB $467,661 $508,053 85.3% 8.3% 38.8% 25.8% 21.7% 53.6% 6.7x 5.5x 12.4x 10.1x 28.6x

PayPal PYPL $116,483 $121,892 85.3% 17.9% 152.8% 14.7% 18.2% 26.9% 6.6x 5.6x 24.4x 20.5x 61.9x

Square SQ $26,327 $26,461 61.2% (37.4%) 431.3% NA NA 18.2% 11.6x 8.7x NM 42.1x NM

Western Union WU $11,949 $9,822 96.2% 21.6% 11.3% (4.8%) (0.5%) 24.5% 2.2x 2.3x 9.2x 8.9x 11.0x

Green Dot Corporation GDOT $230 $1,308 27.2% (71.6%) 9.5% 4.3% 5.7% 22.1% 0.2x 0.2x 1.0x 0.8x 23.7x

On Deck Capital ONDK $1,057 $256 37.4% (55.6%) (41.1%) 118.7% 6.1% 7.5% 2.4x 2.2x 31.8x 33.1x 9.4x

LendingClub LC $1,249 $1,140 64.9% (32.6%) (57.7%) 12.4% 13.0% 16.9% 1.6x 1.4x 9.4x 7.0x NM

–

VALUATION1

($ in millions)

P E E R T O P E E R

P E R S O N A L F I N A N C E & M O B I L E W A L L E T S




09/26/2019 MoneyFarm Poste Italiane Provider of an online wealth-management platform. $46

09/16/2019 Greenlight Financial Technology Drive Capital Provider of a smart debit card for parents and families. $54

09/10/2019 The Earnest Research Company Pivot Investment Provider of a data platform that helps customers understand consumer economic trends. $15

09/05/2019 Happy Money CMFG Ventures Provider of savings and debt software. $70

09/04/2019 Even Financial Citi Ventures, Goldman Sachs Provider of a supply side platform for the marketplace lending (P2P) market. $26

08/27/2019 Toss Kleiner Perkins, Ribbit Capital Provider of a mobile application offering P2P transfers and personal financial management. $80

08/21/2019 Tala RPS Ventures Provider of mobile-based financial application for under-served populations. $110

08/08/2019 Monzo Y Combinator Provider of a mobile banking application that enables consumers to control their spending. $143

08/06/2019 Klarna Bank Dragoneer Investment Group, BlackRock Provider of payment solutions and consumer credit products for merchants and consumers. $460

07/30/2019 Nubank Technology Crossover Ventures Provider of a digital credit card in Brazil. $400

07/22/2019 Moneylion Edison Partners Provider of data driven online consumer lending platform. $100

07/22/2019 Robinhood DST Global Provider of a mobile stock trading application. $323

07/18/2019 N26 Insight Partners Provider of mobile banking services. $470

07/15/2019 Lendbuzz Funding 83North Provider of car loans to expats and international students. $150

07/10/2019 Remitly Generation Investment Management Provider of online remittance and money transfer solutions. $135

09/24/2019 Simpletax WealthSimple Provider of a web-based tax preparation platform. NA

09/13/2019 GoHealth Centerbridge Partners Provider of technology based health insurance services. $1,500

08/04/2019 Credible Labs Fox Corporation Provider of an online lending marketplace $397

07/31/2019 Caviar DoorDash Provider of an online platform that enables users to order food from local restaurants in the US. $410

07/04/2019 Fundimmo Atland Provider of a real estate crowdfunding platform. NA

07/03/2019 Just Cash Canaccord Genuity Provider of an application for access to ATM networks. NA

05/22/2019 Live Auctioneers Cove Hill Partners Provider of an online auction site for collectibles, antiques, jewelry and art auctions. NA

05/16/2019 TodayTix Great Hill Partners Provider of a mobile commerce platform for last-minute theater tickets. NA

04/25/2019 PayScale Francisco Partners Management Provider of cloud compensation software for individuals and business customers. NA

04/18/2019 Payzone First Data, AIB Group Provider of a consumer payment acceptance network that provides payment services in Europe. NA

04/17/2019 Lenda Reali Provider of an online platform that allows homeowners to complete home loan processes online. NA

02/28/2019 Benefit Mobile LaSalle Capital Provider of a digital gift card platform. NA

01/23/2019 Flyt Just Eat Holding Provider of a mobile payment application for checking, splitting, and paying restaurant bills. $26

01/22/2019 Nutmeg Convoy Global Holdings Provider of digital wealth management services designed to provide easy access to investing. $319

01/15/2019 Pocket Concierge American Express Provider of restaurant booking service in Japan. NA

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