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Financial Technology Sector Summary
February 11, 2016
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
Financial Technology Sector Summary
I. GCA Savvian Overview
II. Market Summary
III. Payments / Banking
IV. Securities / Capital Markets / Data & Analytics
V. Healthcare / Insurance
Table of Contents
2
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
I. GCA Savvian Overview
3
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
GCA Savvian Overview
Leading provider of mergers and acquisitions,
private capital agency and capital markets
advisory services, and private funds services
Headquarters in San Francisco and offices in
New York, London, Tokyo, Osaka, Singapore,
Mumbai, and Shanghai
Majority of U.S. senior bankers previously
with Goldman Sachs, Morgan Stanley,
Robertson Stephens, and JPMorgan
Senior level attention and focus, extensive
transaction experience and deep domain
insight
Focused on providing strategic advice for our
clients long-term success
225+ investment banking professionals
Independent Investment Bank Focused on Growth Sectors of the Global Economy
100+ C R O S S - B O R D E R T R A N S A C T I O N S
20+ R E P R E S E N T A T I V E C O U N T R I E S
580+ C L O S E D T R A N S A C T I O N S
$145BN+ O F T R A N S A C T I O N V A L U E
7+ A R E A S O F I N D U S T R Y E X P E R T I S E
Financial Technology Business & Tech Enabled Services
Media & Digital Media Industrial Technology
Telecommunications Healthcare
4
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
GCA Savvian Overview Financial Technology Landscape
GCA Savvian divides
Financial Technology into
three broad categories
Payments & Banking
Securities & Capital
Markets
Healthcare & Insurance
Payments & Banking Securities & Capital Markets
Financial Technology
Analytics
ATMs
Bill Payment
Collections
Core Processing
Financial Outsourcing
Information Processing
Issuer Processing
Marketing / Offers
Merchant Acquiring
Mobile
Money Transfer
Online Lending
P2P Lending
Prepaid
Crowd Funding
Digital Media
e-Brokerage
Exchanges
Hedge Fund Administration
Index Businesses
Mutual Fund Processing
Personal Financial Mgmt.
Risk & Analytics
Securities Brokerage
Software / SaaS
Trading Platforms
Healthcare & Insurance
BPO / IT Services
Brokerage
Claims Processing
Collections
CRM
Document Management
eCommerce
Information and Analytics
Payments
Risk Management
Software / SaaS
Title / Appraisal
5
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
San Francisco
150 California St., Ste. 2300
San Francisco, CA 94111
(415) 318-3600
Sean Minnihan Managing Director
Phone: (212) 999-7077
Mobile: (917) 364-6230
Steve Fletcher Managing Director
Phone: (415) 318-3661
Mobile: (415) 518-6725
Paul DiNardo Advisory Director
Phone: (212) 999-7097
Mobile: (650) 483-7246
Derek Bell Managing Director
Phone: (212) 999-7089
Mobile: (914) 953-0689
GCA Savvian Overview Financial Technology Team
6
Peter Bang Managing Director
Phone: (212) 999-7074
Mobile: (917) 783-4057
New York
640 Fifth Avenue, 10th
Fl.
New York, NY 10019
(212) 999-7090
Rob Freiman Director
Phone: (212) 999-7075
Mobile: (973) 229-0436
David Ibarra Analyst
Phone: (212) 537-4532
Mobile: (917) 471-0821
Alexander Berry Analyst
Phone: (212) 999-7079
Mobile: (818) 851-2300
David Krueger Vice President
Phone: (212) 537-4534
Mobile: (616) 822-7179
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
II. Market Summary
7
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
75
80
85
90
95
100
105
110
115
11/5/15 11/13/15 11/22/15 11/30/15 12/8/15 12/16/15 12/24/15 1/1/16 1/10/16 1/18/16 1/26/16 2/3/1690
95
100
105
110
115
120
125
130
2/5/15 3/8/15 4/7/15 5/7/15 6/7/15 7/7/15 8/6/15 9/6/15 10/6/15 11/5/15 12/6/15 1/5/16 2/4/16
Last 12 Months Last 3 Months
Financial Data, Content,
& Analytics
(3)
Payments
(1)
Online Broker Dealers
(6)
Exchanges
(2)
Investment Services,
Software, & Technology
(8)
Information Processors /
Credit Bureaus
(4)
(5)
Trading Platforms
(7) Banking & Lending
Technology
Healthcare / Insurance
Technology
(9)
Market Summary Industry Stock Market Performance
8
Notes:
(1) Payments: ADS, AIM: PPT, AXP, BOVESPA: CIEL3, CATM, DFS, EEFT, ENXTPA: EDEN, FDC, FLT, GDOT, GPN, HPY, MA, MGI, ONE, OUTR, PYPL, PAR, SQ, TSS, UEPS, V, VNTV, WEX, LSE: WPG, WU, XOOM, XTRA: WDI.
(2) Exchanges: ASX: ASX, ATSE: EXAE, BMV: BOLSA A, BOVESPA: BVMF3, CATS: BME, CBOE, CME, ICE, JSE: JSE, KLSE: BURSA, LSE: LSE, NDAQ, SEHK: 388, SGX: S68, TSX: X, WSE: GPW, XTRA: DB1.
(3) Financial Data, Content & Analytics: DNB, ENXTPA: FIM, FDS, HHS, HIS, MCO, MHP, MORN, MSCI, MRKT, RATE, TRI.
(4) Information Processors / Credit Bureaus: ACXM, EFX, FICO, INTX, LSE: EXPN.
(5) Trading Platforms: BGCP, INTL, ITG, MKTX, VIRT.
(6) Online Broker Dealers: AMTD, ETFC, FXCM, GCAP, IBKR, SCHW.
(7) Banking & Lending Technology: ACIW, BKFS, ELLI, EPAY, FIS, FISV, INTU, JKHY, LC, ONDK, PFMT, QTWO, SWX: TEMN, YDLE.
(8) Investment Services, Software, & Technology: ADVS, BR, DST, ENV, FNGN, SEIC, SSNC.
(9) Healthcare / Insurance Technology: BSE:532254, ATHN, EBIX, CRD.B, GWRE, IMS, SLH, TSXV:SY, VRSK.
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
Last 3 Months 1 Year 3 Years
Market Summary Indexed Price Performance by Sector
9 Notes: Numbers represent medians of sub-sectors. Details available in later pages.
(20.9%)
(15.5%)
(11.9%)
(10.1%)
(7.3%)
(6.0%)
(5.2%)
(0.5%)
5.5%
(30.0%) (20.0%) (10.0%) 0.0% 10.0%
Online Broker Dealers
Investment Services,
Software, & Technology
Payments
Financial, Data, Content, &
Analytics
Exchanges
Banking & Lending
Technology
Healthcare / Insurance
Technology
Information Processors /
Credit Bureaus
Trading Platforms
(15.8%)
(8.4%)
(6.1%)
(6.6%)
(0.4%)
2.8%
(0.5%)
4.1%
20.7%
(20.0%) (10.0%) 0.0% 10.0% 20.0% 30.0%
54.3%
73.4%
46.9%
54.0%
21.7%
60.6%
33.3%
25.6%
145.8%
0.0% 50.0% 100.0% 150.0% 200.0%
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
8.9%
10.2%
11.8%
12.9%
14.1%
14.5%
16.6%
16.6%
17.8%
0% 5% 10% 15% 20%
Exchanges
Healthcare / Insurance Technology
Information Processors / Credit Bureaus
Financial Data, Content, & Analytics
Investment Services, Software, & Technology
Payments
Trading Platforms
Banking and Lending Technology
Online Broker Dealers
Long-Term EPS Growth LTM EBITDA Margins (1)
20.5%
21.6%
25.9%
27.1%
27.4%
38.7%
57.7%
0% 10% 20% 30% 40% 50% 60% 70%
Investment Services, Software, &
Technology
Payments
Banking and Lending Technology
Healthcare / Insurance Technology
Information Processors / Credit Bureaus
Financial Data, Content, & Analytics
Exchanges
Market Summary Long-Term EPS Growth and LTM EBITDA Margins
10 Notes:
Numbers represent medians of sub-sectors. Details available in later pages.
(1) Online Broker Dealers and Trading Platforms not material.
F i n a n c i a l T e c h n o l o g y S e c t o r S u m m a r y
2016E Price / Earnings Multiples 2016E PE / Growth (PEG Ratio)
13.8x
15.1x
15.9x
16.4x
16.8x
17.8x
17.9x
19.8x
24.4x
0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x
Payments
Trading Platforms
Exchanges
Online Broker Dealers
Healthcare / Insurance Technology
Financial Data, Content, & Analytics
Investment Services, Software, &
Technology
Information Processors / Credit Bureaus
Banking and Lending Technology
1.0
1.1
1.2
1.3
1.4
1.6
1.6
1.8
1.8
0.0 0.5 1.0 1.5 2.0
Payments
Online Broker Dealers
Trading Platf