Important disclosures appear at the back of this report
GP Bullhound LLP is authorized and regulated by the Financial Conduct Authority GP Bullhound Inc is a member of FINRA
Global Fintech Market Perspectives
H1 2019
2
Fintech perspectives – executive summary
▪ GP Bullhound is a leading technology advisory and investment firm, providing transaction advice and
capital to category leaders with a focus on fintech globally
▪ We publish our inaugural fintech market report to provide quantitative insights into public and private market
valuations across the transaction spectrum and qualitative insights into company business models,
technology and customer trends
▪
Based in our London office, Claudio Alvarez heads up our Fintech practice which has completed over 20
transactions involving both Equity and Debt
▪ We also feature many of the leading Fintech investors, companies & CEOs across sectors which we find
interesting at the moment given the emergence of Open Banking, the importance of User Experience and
the prevalence of Alternative Lending
▪
Several of our recent Fintech advisory transactions and investments are showcased below
Sold to
Private Placement
Private Placement
Investment from
Investment from
Investment from
Private Placement
Investment from
3
Key sector takeaways
Recent Fintech transaction trends
1
2
3
4
6
Public market Fintech analysis
Fintech CEO & Investor commentary
Appendix A: Fintech trading comparables by
category
Appendix B: GP Bullhound Fintech credentials &
team
5
4
The emergence of Open Banking
1
Digital banks continue to shine in investors’ minds
3
Cloud-based core banking platforms look to take centre stage
4
Continued consolidation in the payments universe
2
GP Bullhound’s view on current trends in Fintech
5
– We have seen an extraordinarily strong consolidation trend in payments in
the last twelve months. Most notably the merger of Worldpay and FIS, the
acquisition of iZettle by PayPal and the acquisition of Six by Worldline.
Strategic rationales focus on complementary products and geographies
– Notably, high growth payments companies Adyen and Network
International have taken a contrary view and chosen to IPO aiming to grow
further organically
– We anticipate major acquisitions to continue as lower-growth industry
players are looking to acquire digital payment assets
– Private companies to watch include Stripe (which was valued at $22.5bn in
their latest round) Klarna, Dwolla, Trustly, Paysafe and Checkout.com
GP Bullhound’s view on current trends in Fintech
Source: CapitalIQ, Pitchbook
The emergence of Open Banking
Continued consolidation in the payments universe
1
2
– Although the regulatory scheme driving Open Banking (“OB”) is being led in
Europe (PSD2), OB is a global theme given the ubiquity of the digital
economy and adoption of mobile payments
– The announcement of Apple Card and Klarna’s launch of its own OB
platform signal that (i) user experience is playing an increasingly vital role
and (ii) merchants will look to integrate OB sooner rather than later to create
a competitive edge versus other market participants
–
Investors are bullish on the impact that OB will have with companies raising
c.$0.5bn over the last six months, and Plaid’s $250m being the largest
fundraise
– We expect investors’ level of enthusiasm to continue given the broad
application of OB and other tech giants moving into this space
TTV: $40m
Deal Date: 5 Jun 2019
EV: $42.6bn
EV/ Rev: 10.2x
Deal Date: 18 Mar 2019
TTV: $25.7bn
EV/Rev: 6.4x
Deal Date: 28 May 2019
TTV: $38.5bn
EV/Rev: 4.0x
Deal Date: 16 Jan 2019
TTV: $843m
EV/Rev: 6.8x
Deal Date: 22 May 2019
TTV: $250m
Deal Date: 11 Dec 2018
TTV: $64m
Deal Date: 6 Feb 2019
TTV: $20m
Deal Date: 3 Feb 2019
6
– Bank’s total global IT spend is forecast to reach $297bn by 2021, with
spending on core banking systems accounting for 23% of total spend - the
largest segment after mobile/Internet and BI/big data/analytics
– With digital transformation impacting banks’ key verticals such as retail
investments, retail lending, SME lending and corporate payments – and the
emergence of Open Banking – banks are looking for alternatives to
proprietary legacy banking platforms which allow them to deploy solutions
to market in an agile manner and leverage the cloud and API ecosystems
– We will continue to see strategics becoming stakeholders – such as in the
case of 10x and Cloud Lending Solutions – but expect investors to continue
backing independents as adoption grows and these businesses start
generating meaningful ARR levels
GP Bullhound’s view on current trends in Fintech (cont’d)
Source: CapitalIQ, Pitchbook, Celent, “Global Tech Spending Forecast 2018, Banking Edition”; 10th
Tenemos / Accenture Survey 2017
Digital banks continue to shine in investors’ minds
Cloud-based core banking platforms look to take centre stage
3
4
– Digital banks raised c.$1.1bn in 2018 but that level looks like it will be
surpassed if the pace that H1 2019 set continues
– The first quarter of 2019 saw N26, OakNorth, Starling and Chime raise a total
of almost $1bn, and we don’t expect this to slow down with rumours about
Monzo close to closing a large round that would value it at £2bn; Monese
looking to raise $100M+ after its $60m Series B last year; Revolut looking to
close another growth round after its $250m Series C last year; and Tide
looking to raise £60m
– We don’t anticipate any consolidation in the space yet as most players are
in ‘ramp-up’ mode but OakNorth has openly stated that it is looking at
opportunistic acquisitions, and with the backing of SoftBank, has the
firepower to acquire a meaningful player in this space
TTV: $97m
Deal Date: 13 Feb 2019
TTV: $440m
Deal Date: 8 Feb 2019
TTV: $300m
Deal Date: 10 Jan 2019
TTV: $200m
Deal Date: 5 Mar 2019
TTV: $34m
Deal Date: 18 Feb 2019
TTV: $19.6m
Deal Date: 7 Mar 2019
TTV: $50m
Deal Date: 30 Apr 2019
TTV: $30m
Deal Date: 25 Jan 2019
7
Key sector takeaways
Recent Fintech transaction trends
Public market Fintech analyses
Fintech CEO & Investor commentary
1
2
3
4
6
Appendix B: GP Bullhound Fintech credentials &
team
Appendix A: Fintech trading comparables by
category
5
Confidential
8
Global fintech transaction trends
M&A and fundraising activity by quarter
Source(s): * Pitchbook as of 31 May 2019
Note: Data includes all “Fintech” M&A &private placement deals and IPOs as defined by Pitchbook
regardless of geography or transaction size
Transaction M&A deal value & volume
Fundraising deal values becoming larger
The US and Europe dominate M&A deal value
Fundraising deal value by region
0
50
100
150
200
250
300
350
$0B
$10B
$20B
$30B
$40B
$50B
$60B
$70B
$80B
$90B
$100B
Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019*M&A
M&A Deals
0
200
400
600
800
1000
1200
$0B
$5B
$10B
$15B
$20B
$25B
$30B
$35B
$40B
$45B
$50B
Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019*Total Capital Invested
Deal count
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019*U.S. & Canada
Europe
Asia
Other
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Q3 2016Q4 2016Q1 2017Q2 2017Q3 2017Q4 2017Q1 2018Q2 2018Q3 2018Q4 2018Q1 2019Q2 2019*U.S. & Canada
Europe
Asia
Other
9
Announce
Date
Target
Buyer
Target Description
Value
($m)
Implied
EV/LTM Rev
11/02/2019
Digital identity
verification and
authentication solutions
300
7.9x
11/02/2019
Cloud-enabled services
provider for equity
plans management
863
7.1x
11/02/2019
Provider of online
payment services
-
-
11/02/2019
Online equity plan
administration
technology & services
829
7.1x
30/01/2019
Real-time payment
solution provider
38
-
18/01/2019
Blockchain-enabled
platform for online
transactions
72
-
16/01/2019
Electronic commerce
and payment solutions
41,770
4.7x
08/01/2019
Financial data
analytics
200
-
14/12/2018
Online financial and
investment advisory
services
-
-
13/12/2018
Transaction
management platform
provider
245
-
04/12/2018
Personal financial
advisory services
provider
-
-
Announce
Date
Target
Buyer
Target Description
Value
($m)
Implied
EV/LTM Rev
28/05/2019
Electronic payment
services provider
25,700
6.4x
22/05/2019
Payment services and
IT solutions for online
businesses
843
5.5x
13/05/2019
Platform providing
news and data to
financial institutions
1,754
-
10/05/2019
Private Equity and
alternative investment
software
1,490
-
08/05/2019
Provider of cross-border
payment services to
banks and businesses
273
6.8x
17/04/2019
Cloud-based solutions
for the residential
mortgage industry
3,608
7.0x
12/04/20109
Provider of payment
security and mobile
payment technologies
70
-
18/03/2019
Provider of payment
processing services
43,000
11.1x
05/03/2019
Expense reporting and
supplier invoice
automation platform
(2)
-
01/03/2019
Securities trading
technology solutions
provider
816
-
28/02/2019
Electronic bill
presentment and
payment solutions
750
2.1x
26/02/2019
Financial SaaS platform
for SME’s and
accountants
-
-
14/02/2019
Currency exchange
and payments
company
641
-
Notable Fintech M&A deals
Dec 2018 – June 2019 (1)
Source(s): CapitalIQ, Pitchbook, Mergermarket
(1)To 4 June 2019
(2) Transaction rumored to be >$1bn
10
Announced
Date
Targets
Lead Investor(s)
Target Description
Capital
Raised ($m)
04/06/2019
Platform to build financial
applications
35
04/06/2019
Cloud based open
banking platform
10
04/06/2019
Online platform for
business loans
52
03/06/2019
Online money transfer
service
175
29/05/2019
Online lending and wealth
management platform
500
22/05/2019
Online app for investing in
different asset classes
74
21/05/2019
Open API platform for
managing payments
processes
260
13/05/2019
Tech enabled working
capital provider
800
02/05/2019
Online payments platform
230
16/04/2019
Employee financial
wellness platform provider
32.8
11/04/2019
Peer-to-peer insurance
platform for renters and
homeowners
300
03/04/2019
Microlender for consumers
at point of sale
300
25/03/2019
Platform offering smart
cross-border payment
solutions
100
10/03/2019
E-commerce payment
solutions
93
Announced Date
Targets
Lead Investor(s)
Target Description
Capital
Raised ($m)
06/03/2019
Online platform for
insurance services
125
05/03/2019
Digital-only bank provider
200
13/02/2019
Digital-only bank provider
100
08/02/2019
Online lending and
savings solutions
440
07/02/2019
Automated micro
investing app
105
07/02/2019
Online payment
processing services to
businesses provider
75
07/02/2019
Cloud based open
banking platform
64
05/02/2019
Term deposit rates
marketplace operator
116
29/01/2019
Online payment
processing solutions
100
11/01/2019
Mobile financial services
across emerging markets
170
09/01/2019
Digital-only bank provider
300
21/12/2018
Online solutions for holiday
financing
123
20/12/2018
Offers paycheck advance
to workers
125
03/12/2018
Investment and financing
services online platform
developer
1,330
Notable Fintech private financings
Dec 2018 – June 2019 (1)
Source(s): CapitalIQ, Pitchbook, Mergermarket
(1)To 4 June 2019
11
Key sector takeaways
Recent Fintech transaction trends
Public market Fintech analyses
Fintech CEO & Investor commentary
1
2
3
4
6
Appendix B: GP Bullhound Fintech credentials &
team
Appendix A: Fintech trading comparables by
category
5
12
99.1
15.3
23.2
16.1
7.9
4.1
2.2
2.1
2.2
1.1
1.5
0.4
29.9
15.4
3.0
7.7
3.3
1.7
1.2
1.1
0.6
0.2
128.9
30.6
26.2
23.8
11.2
5.8
3.5
3.2
2.8
1.3
1.0
0.3
Market Cap
Change in Market Cap
Current Market Cap
GP Bullhound’s selected Fintech index market valuations
Source(s): CapitalIQ
1. Market capitalization as of 31/12/2018
2.
Change in market capitalisation through 31/05/2019
(Market Cap Values in $ in billions)
1
2
(0.5)
(0.1)
13
4.0x
6.0x
8.0x
10.0x
12.0x
14.0x
31/05/2016 30/09/2016 31/01/2017 31/05/2017 30/09/2017 31/01/2018 31/05/2018 30/09/2018 31/01/2019 31/05/2019
2019 H1 GPB Fintech Index - TEV/LTM Revenues
2019 H1 GPB Fintech Index - TEV/NTM Revenues
Analysis of GP Bullhound Fintech index valuations
Revenue multiple trends – last three years
Source(s): CapitalIQ as of 31 May 2019. (1) EV/Rev multiples except for online lenders which are computed as Market Cap/Rev multiples
Note: Fintech Index constituents are: Paypal, Shopify, Square, Adyen, Market Access, Xero, Envestnet, Q2, Blackline, Lending Club, Funding
Circle, Ondeck
Current Fintech valuations are trading higher than the three year
mean; showing the strength of the current market environment
Mean: 9.1x
Mean: 8.3x
As of May 31 : 10.8x
As of May 31: 11.7x
EV/Revenue(1)
14
Share price performance – LTM
Source: CapitalIQ as of 31 May 2019
Note: Detail on companies included shown in Appendix
Banking Technology
16.1%
HR & Payroll
39.4%
Financial Data &
Analytics
25.6%
Nasdaq
0.1%
Payments
16.2%
LTM performance
Performance
1 Month
3 Months
6 Months
1 Year
HR & Payroll
0.3%
9.6%
32.9%
39.4%
Banking Technology
(4.6%)
2.5%
12.9%
16.1%
Financial Data & Analytics
(1.8%)
10.6%
19.2%
25.6%
Payments
(1.2%)
6.5%
18.5%
16.2%
Nasdaq
(7.9)%
(1.1)%
1.7%
0.1%
The Fintech sector is outperforming the NASDAQ
70
80
90
100
110
120
130
140
150
HR & Payroll
Banking Technology
Financial Data & Analytics
Payments
Nasdaq
15
Indicative trading valuation benchmarks
Source: CapitalIQ as of 31 May 2019
Notes: Mean
14.7%
28.5%
29.5x
9.2x
9.4%
36.4%
24.5x
10.3x
10.6%
33.2%
23.7x
9.7x
HR & Payroll
Payments
Banking Technology
Companies
Avg. 2019E
Revenue Growth
Avg. 2019E
EBITDA Margin
Avg. EV / 2019E
Revenue
Avg. EV / 2019E
EBITDA
3.0%
32.9%
19.0x
7.5x
Financial Data &
Analytics
16
Key sector takeaways
Recent Fintech transaction trends
Public market Fintech analyses
Fintech CEO & Investor commentary
1
2
3
4
6
Appendix B: GP Bullhound Fintech credentials &
team
Appendix A: Fintech trading comparables by
category
5
17
Fintech CEO profile
Meniga offers B2B2C SaaS solutions to help leading banks use data to
create better customer experiences and new revenue streams in digital
banking. Meniga’s key message to banks is “Banking beyond banking”.
To stay relevant, digital banking applications must become more than
just a place to perform banking services. They must get smarter and
evolve into more of a financial-coach type application that helps
people with their financial lives, including how to be smarter consumers
and save money.
Georg Ludviksson
CEO & Co-Founder
“We currently see multiple forces bring rapid
changes to the world of digital banking.
These forces are driving demand for Meniga’s
solutions as banks are realizing that if they
don’t create more value from their data for
their customers, then someone else will”
Personal Financial
Management
Targeted
Insights
Financial
Gamification
Personalised
Cashback Rewards
18
Fintech investor profile
Launched in October 2015, the ABN AMRO Digital Impact Fund is a
corporate venture fund investing in innovative start-ups and scale-ups
specialising in the digitalisation of financial products and services.
The fund is here to add value and allow portfolio companies to access
ABN AMRO’s knowledge and network. In March 2018, the fund was
raised to €50m thanks to a successful investment pace. Investments
range between €1m and €5m.
Hugo Bongers
Director
“From a fund perspective, Open Banking is one
of the core trends within financial services. We
view it as a real opportunity within ABN
AMRO, keeping in mind it still remains the
early days of the segment”
Digital Impact Fund
Open banking APIs
Description: Tink enables
banks to create next-
generation banking
services, including account
aggregation and PFM
Location: Stockholm,
Sweden
Investment(s): May-16; Oct-
17; Feb-19
Bank as a platform
Description: SolarisBank
offers a platform that
enables digital companies
to create custom solutions
for their financial needs
Location: Berlin, Germany
Investment(s): Mar-18
Data aggregation and
marketplace
Description: CrossLend
provides a debt exchange
platform where capital
flows of originators are
matched towards investors
Location: Berlin, Germany
Investment(s): Sep-18
Data management
Description: Tealium offers
solutions for real-time
customer data
orchestration solutions and
enterprise tag
management.
Location: San Diego, USA
Investment(s): May-19
19
Fintech CEO profile
TrueLayer’s aim is to become the leading provider of financial APIs that
power a new era of financial innovation. TrueLayer is building a range
of APIs - including a Data API which allows companies to access the
financial data of their customers, securely and efficiently and a
Payments API which enables seamless, secure and near instantaneous
online payments.
TrueLayer was founded in 2016 by serial entrepreneurs, Francesco
Simoneschi and Luca Martinetti. It has received $47 million of funding
from top-tier firms operating in financial services and SaaS business,
including Tencent, Temasek, Northzone & others.
Francesco Simoneschi & Luca Martinetti
Co-founders
“TrueLayer’s goal is to foster innovation which
removes friction and barriers to entry from
banking. This will allow consumers and
businesses to benefit from modern, fair and
competitive access to financial products and
services. We help developers to easily access and
operate the technical infrastructure which will
make Open Banking a reality, not just in Europe
but eventually, across the world”
20
Key sector takeaways
Recent Fintech transaction trends
Public market Fintech analyses
Fintech CEO & Investor commentary
1
2
3
4
6
Appendix B: GP Bullhound Fintech credentials &
team
Appendix A: Fintech trading comparables by
category
5
21
Source: CapitalIQ as of 31 May 2019
Trading comparables – HR & Payroll
Market Cap
(USDm)
EV (USDm)
Revenue Growth
EBITDA Growth
EBITDA Margin
EV / Revenue
EV / EBITDA
P/E
Company
31/May/19 31/May/19
18/19
19/20
18/19
19/20
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
HR & Payroll
ADP
69,689
69,858
9%
7%
11%
12%
24%
25%
26%
5.2x
4.8x
4.5x
21.6x
19.5x
17.4x
39.9x
28.1x
24.6x
Intuit
63,476
60,578
12%
10%
41%
13%
29%
36%
37%
9.7x
8.6x
7.9x
34.1x
24.1x
21.4x
64.5x
35.8x
30.7x
Workday
46,211
45,848
26%
23%
n.a.
34%
(9%)
20%
21%
16.2x
12.9x
10.4x
n.m.
65.5x
48.9x
n.m
121.0x
91.3x
Paychex
30,832
30,954
18%
6%
15%
7%
42%
41%
41%
9.0x
7.7x
7.2x
21.5x
18.7x
17.6x
37.8x
28.9x
26.6x
SS&C
14,079
22,446
38%
5%
71%
8%
32%
40%
41%
6.6x
4.8x
4.6x
20.4x
12.0x
11.0x
62.3x
14.6x
13.2x
Paycom
12,198
12,166
27%
23%
56%
25%
34%
41%
42%
21.5x
16.9x
13.8x
63.7x
40.9x
32.7x
112.1x
64.5x
51.4x
The Sage Group
10,242
10,774
7%
8%
(3%)
7%
29%
26%
26%
4.6x
4.3x
4.0x
16.1x
16.6x
15.5x
28.9x
24.2x
22.2x
Coupa Software
6,698
6,551
26%
26%
n.a.
151%
(15%)
6%
11%
25.2x
20.0x
15.9x
n.m.
n.m.
n.m.
n.m
n.m
n.m
Xero
5,826
5,814
32%
27%
94%
49%
13%
19%
23%
17.2x
13.0x
10.3x
n.m.
68.0x
45.7x
n.m
n.m
n.m
Paylocity
5,309
5,170
26%
20%
238%
25%
11%
29%
30%
12.8x
10.1x
8.5x
n.m.
35.1x
28.2x
n.m
68.5x
54.8x
TriNet
4,436
4,606
(73%)
10%
41%
12%
8%
41%
42%
1.3x
4.9x
4.5x
16.9x
12.0x
10.7x
29.6x
18.7x
16.6x
Blucora
1,499
1,621
28%
18%
32%
24%
19%
19%
20%
2.9x
2.3x
1.9x
15.4x
11.7x
9.4x
46.9x
14.3x
11.2x
Mean
15%
15%
59%
31%
18%
29%
30%
11.0x
9.2x
7.8x
26.2x
29.5x
23.5x
52.7x
41.8x
34.3x
Median
26%
14%
41%
18%
21%
27%
28%
9.4x
8.2x
7.5x
21.0x
19.5x
17.6x
43.4x
28.5x
25.6x
22
Source: CapitalIQ as of 31 May 2019
Trading comparables – Banking Technology
Market Cap
(USDm)
EV (USDm)
Revenue Growth
EBITDA Growth
EBITDA Margin
EV / Revenue
EV / EBITDA
P/E
Company
31/May/19 31/May/19
18/19
19/20
18/19
19/20
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
Banking Technology
First Data
23,989
43,693
4%
6%
11%
7%
35%
38%
39%
5.0x
4.8x
4.6x
14.2x
12.8x
11.9x
37.5x
16.1x
14.2x
Fiserv
33,695
39,500
6%
5%
25%
5%
33%
38%
38%
6.8x
6.4x
6.1x
20.8x
16.7x
15.9x
41.2x
24.8x
22.3x
Temenos
12,040
12,584
18%
12%
58%
14%
29%
39%
39%
15.0x
12.7x
11.4x
52.0x
33.0x
28.9x
98.3x
49.8x
42.8x
MarketAxess
11,227
10,973
11%
12%
14%
15%
54%
55%
56%
25.3x
22.7x
20.3x
47.1x
41.4x
36.0x
80.8x
58.5x
50.8x
Jack Henry
10,131
10,130
0%
7%
6%
7%
31%
32%
33%
6.3x
6.3x
5.9x
20.6x
19.5x
18.1x
40.0x
37.1x
33.0x
Q2
3,237
3,292
29%
22%
n.a.
94%
(7%)
7%
11%
13.7x
10.6x
8.7x
n.m.
n.m.
81.8x
n.m
n.m
n.m
Bottomline Technologies
1,900
1,922
6%
10%
139%
7%
10%
23%
23%
4.7x
4.4x
4.0x
45.2x
18.9x
17.7x
n.m
32.7x
29.5x
Mean
11%
10%
42%
21%
26%
33%
34%
11.0x
9.7x
8.7x
33.3x
23.7x
30.0x
59.5x
36.5x
32.1x
Median
6%
10%
19%
7%
31%
38%
38%
6.8x
6.4x
6.1x
33.0x
19.2x
18.1x
41.2x
34.9x
31.2x
23
Source: CapitalIQ as of 31 May 2019
Trading comparables – Financial Data & Analytics
Market Cap
(USDm)
EV (USDm)
Revenue Growth
EBITDA Growth
EBITDA Margin
EV / Revenue
EV / EBITDA
P/E
Company
31/May/19 31/May/19
18/19
19/20
18/19
19/20
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
Financial Data & Analytics
S&P Global
52,632
57,327
4%
6%
4%
7%
51%
51%
51%
9.2x
8.8x
8.3x
18.1x
17.4x
16.2x
33.5x
23.7x
21.5x
Moody's
34,674
39,726
5%
6%
6%
8%
47%
48%
48%
8.9x
8.5x
8.0x
18.8x
17.8x
16.5x
32.7x
23.2x
20.9x
Thomson Reuters
31,803
32,966
8%
4%
35%
32%
20%
25%
31%
6.0x
5.6x
5.3x
30.6x
22.7x
17.2x
n.m
54.3x
33.0x
Experian
27,139
30,233
4%
8%
2%
9%
34%
34%
34%
6.2x
6.0x
5.6x
18.3x
17.9x
16.4x
43.8x
29.6x
25.7x
IHS Markit
22,942
28,422
11%
6%
33%
8%
33%
40%
41%
7.1x
6.4x
6.0x
21.5x
16.1x
14.9x
64.1x
22.5x
19.9x
Verisk Analytics
22,913
25,625
7%
7%
17%
8%
44%
48%
48%
10.7x
10.0x
9.3x
24.5x
21.0x
19.4x
52.1x
31.7x
28.6x
MSCI
18,630
20,754
8%
10%
11%
11%
53%
55%
56%
14.5x
13.4x
12.2x
27.2x
24.5x
22.0x
53.2x
35.0x
30.7x
TransUnion
12,274
16,262
13%
8%
25%
10%
35%
39%
40%
7.0x
6.2x
5.7x
19.8x
15.9x
14.4x
54.4x
24.7x
21.6x
FactSet
10,638
10,968
6%
6%
14%
8%
33%
36%
37%
8.0x
7.5x
7.2x
24.0x
21.1x
19.5x
44.6x
28.4x
25.6x
Black Knight
8,373
10,066
7%
8%
63%
10%
33%
50%
51%
9.0x
8.5x
7.8x
27.7x
17.0x
15.5x
60.8x
29.0x
25.1x
FICO
8,578
9,324
9%
9%
44%
14%
23%
31%
32%
8.8x
8.0x
7.4x
37.8x
26.3x
23.1x
74.9x
39.1x
33.9x
Morningstar
5,974
5,771
n.a.
n.a.
n.a.
n.a.
26%
n.a.
n.a.
5.7x
n.a.
n.a.
21.4x
n.a.
n.a.
44.7x
n.a
n.a
CoreLogic
3,162
4,959
(6%)
1%
20%
7%
22%
28%
30%
2.8x
3.0x
2.9x
12.7x
10.6x
9.9x
31.5x
15.7x
13.9x
Envestnet
3,471
3,774
12%
17%
122%
24%
11%
21%
23%
4.6x
4.2x
3.6x
43.3x
19.5x
15.7x
n.m
31.5x
25.2x
LiveRamp
3,544
2,482
(64%)
27%
n.a.
n.a.
7%
(18%)
2%
2.6x
7.2x
5.7x
36.4x
n.m.
n.m.
n.m
n.m
n.m
BlackLine
2,830
2,716
23%
22%
n.a.
59%
(5%)
8%
10%
11.9x
9.7x
8.0x
n.m.
n.m.
78.8x
n.m
n.m
n.m
Mean
3%
10%
30%
15%
29%
33%
35%
7.7x
7.5x
6.9x
25.5x
19.0x
21.4x
49.2x
29.9x
25.0x
Median
7%
8%
20%
9%
33%
36%
37%
7.5x
7.5x
7.2x
24.0x
17.9x
16.5x
48.4x
29.0x
25.2x
24
Source: CapitalIQ as of 31 May 2019
Trading comparables – Payments
Market Cap
(USDm)
EV (USDm)
Revenue Growth
EBITDA Growth
EBITDA Margin
EV / Revenue
EV / EBITDA
P/E
Company
31/May/19 31/May/19
18/19
19/20
18/19
19/20
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
Payments
High Growth Omnichannel Payments
PayPal
128,949
123,099
16%
18%
68%
21%
18%
25%
26%
8.0x
6.8x
5.8x
45.0x
26.9x
22.3x
82.1x
36.8x
31.2x
Shopify
30,642
28,749
41%
33%
n.a.
86%
(6%)
4%
6%
26.8x
19.0x
14.3x
n.m.
n.m.
n.m.
n.m
n.m
n.m
Square
26,203
26,159
(31%)
34%
2162%
56%
1%
18%
21%
7.9x
11.5x
8.6x
n.m.
62.7x
40.2x
n.m
81.5x
54.6x
Adyen
23,779
22,390
(70%)
36%
45%
40%
11%
53%
55%
12.2x
40.9x
30.1x
n.m.
76.7x
54.6x
n.m
113.5x
80.6x
Wirecard
19,297
17,456
29%
26%
33%
32%
28%
29%
31%
7.6x
5.9x
4.7x
26.8x
20.2x
15.3x
58.6x
33.7x
24.8x
Pageseguro
10,480
9,863
130%
22%
n.a.
33%
(13%)
35%
38%
14.6x
6.4x
5.2x
n.m.
18.2x
13.7x
51.8x
26.9x
21.0x
Mean
19%
28%
577%
45%
6%
28%
30%
12.8x
15.1x
11.4x
35.9x
40.9x
29.2x
64.2x
58.5x
42.4x
Median
23%
29%
57%
36%
6%
27%
28%
10.1x
9.2x
7.2x
35.9x
26.9x
22.3x
58.6x
36.8x
31.2x
General Payments & Services
Worldpay
37,827
45,407
9%
9%
39%
14%
39%
50%
52%
11.6x
10.6x
9.7x
29.3x
21.1x
18.6x
n.m
25.9x
22.3x
First Data
23,989
43,693
4%
6%
11%
7%
35%
38%
39%
5.0x
4.8x
4.6x
14.2x
12.8x
11.9x
37.5x
16.1x
14.2x
TSYS
21,861
25,780
1%
7%
31%
8%
28%
36%
36%
6.4x
6.4x
5.9x
23.0x
17.5x
16.3x
49.3x
25.3x
22.3x
Worldline
10,926
11,197
38%
7%
69%
9%
21%
26%
26%
5.8x
4.2x
4.0x
28.1x
16.6x
15.3x
50.9x
34.6x
29.3x
Nexi
6,088
10,023
(38%)
7%
n.a.
19%
n.a.
47%
53%
5.7x
9.2x
8.6x
n.a.
19.4x
16.3x
n.m
26.5x
21.8x
Cielo
4,647
6,955
(6%)
2%
(28%)
9%
39%
30%
32%
2.3x
2.5x
2.4x
6.0x
8.3x
7.6x
6.2x
8.5x
8.3x
Ingenico
4,930
6,663
22%
6%
23%
9%
18%
18%
19%
2.3x
1.9x
1.8x
12.8x
10.4x
9.5x
23.9x
15.1x
13.8x
Network International
3,508
3,870
12%
13%
30%
18%
42%
49%
51%
13.0x
11.6x
10.3x
30.9x
23.7x
20.2x
0.0x
33.9x
28.9x
EVO Payments
950
1,780
2%
9%
151%
14%
11%
28%
29%
3.2x
3.1x
2.8x
27.8x
11.1x
9.8x
18.2x
51.4x
40.4x
Mean
5%
7%
41%
12%
29%
36%
37%
6.1x
6.0x
5.6x
21.5x
15.7x
13.9x
26.6x
26.4x
22.4x
Median
4%
7%
31%
9%
32%
36%
36%
5.7x
4.8x
4.6x
25.4x
16.6x
15.3x
23.9x
25.9x
22.3x
Payment Networks
Visa
352,568
363,138
(9%)
11%
16%
13%
55%
71%
72%
14.1x
15.5x
13.9x
25.4x
22.0x
19.5x
42.5x
29.0x
24.9x
Mastercard
256,877
256,503
12%
13%
14%
15%
60%
61%
62%
17.2x
15.3x
13.5x
28.8x
25.2x
21.8x
50.2x
33.1x
28.0x
Mean
1%
12%
15%
14%
57%
66%
67%
15.6x
15.4x
13.7x
27.1x
23.6x
20.6x
46.33
31.0x
26.4x
Median
1%
12%
15%
14%
57%
66%
67%
15.6x
15.4x
13.7x
27.1x
23.6x
20.6x
46.33
31.0x
26.4x
Mean (ALL)
9%
15%
190%
24%
24%
36%
38%
9.6x
10.3x
8.6x
24.9x
24.5x
19.5x
39.3x
37.0x
29.1x
Median (ALL)
9%
11%
32%
15%
24%
35%
36%
7.9x
6.8x
5.9x
27.3x
19.8x
16.3x
45.9x
31.0x
24.8x
25
Source: CapitalIQ as of 31 May 2019
Market Cap assumed a proxy for Enterprise Value in multiples analysis
Trading comparables – Online Lenders
Market Cap
(USDm)
EV (USDm)
Revenue Growth
EBITDA Growth
EBITDA Margin
EV / Revenue
EV / EBITDA
P/E
Company
31/May/19 31/May/19
18/19
19/20
18/19
19/20
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
CY2018
CY2019
CY2020
Online Lending
LexinFintech
2,001
2,426
239%
10%
43%
36%
71%
30%
37%
6.4x
1.9x
1.7x
9.0x
6.3x
4.7x
10.4x
5.9x
5.0x
Lending Club
1,296
1,296
12%
12%
40%
33%
13%
16%
20%
1.9x
1.7x
1.5x
14.0x
10.1x
7.6x
n.m
n.m
67.0x
Fundinc Circle
1,031
1,031
41%
38%
n.a.
n.a.
(30%)
(14%)
(5%)
5.8x
4.1x
3.0x
n.m.
n.m.
n.m.
n.m
n.m
n.m
Ondeck
305
305
n.a.
8%
n.a.
25%
n.a.
10%
12%
n.a.
0.7x
0.6x
n.a.
6.6x
5.3x
13.8x
8.9x
7.6x
Mean
24%
14%
44%
22%
20%
21%
26%
6.4x
5.9x
5.2x
25.1x
16.4x
21.2x
45.6x
26.0x
27.3x
Median
8%
10%
40%
15%
23%
29%
31%
6.4x
7.4x
6.3x
24.0x
17.9x
16.1x
46.5x
29.0x
25.2x
26
Key sector takeaways
Recent Fintech transaction trends
Public market Fintech analyses
Fintech CEO & Investor commentary
1
2
3
4
6
Appendix B: GP Bullhound Fintech credentials &
team
Appendix A: Fintech trading comparables by
category
5
27
GP Bullhound’s recent Fintech activity
Private Placement
Private Placement
Investment from
Sold to
Private Placement
Investment from
Investment from
Investment from
Secondary
Sold to
Private Placement
Sold to
Private Placement
Private Placement
Sold to
Sold to
Sold to
Private Placement
Private Placement
Sold to
Private Placement
Sold to
IPO
€343m
Private Placement
28
FLORIS BACKER
Executive Director
Floris.Backer@gpbullhound.com
CLAUDIO ALVAREZ
Partner
Claudio.Alvarez@gpbullhound.com
ADAM PAGE
Associate
Adam.Page@gpbullhound.com
ALEXIS MAJOS
Analyst
Alexis.Majos@gpbullhound.com
Authors
29
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