The M&A outlook in the financial technology and information industry remains strong, according to a new white paper published by Berkery Noyes Investment Bankers. In 2020, 500 M&A transactions occurred with an aggregate value of $87.30 billion.
According to the white paper, in the real estate and mortgage sector, “…the ability to offer a universal product to lenders and servicers as well as to the secondary markets is a trend that is gaining momentum.” It continues, stating that with large vendors looking to create end- to-end solutions, some of the most valuable targets are mortgage fintech platforms that can supplement existing overall systems and help the acquirer “create critical mass.”
“Private equity investment in the financial technology and information market is expected to continue given various factors that make the space attractive such as high-growth and recurring revenue streams,” the authors add. “Financial sponsors are also seeking ways to deploy pent-up capital. At the same time, strategic acquirers are seeking to invest and partner with innovating companies to diversify their product offerings, stay up to date on the latest technology, and cross-sell opportunities to add to their existing customer bases.”
The paper offers an overview of deal activity over the last two years for the financial technology and information market.
The company noted that acquirers are seeking innovative solutions to fill certain voids, expand their product offerings, and maintain their competitive advantage.
Technological growth in specific niches is often followed by investments in products and companies that offer these innovative solutions, which bodes well for future M&A activity.
For a copy of the new white paper, visit with the company online or download it directly here.