The fintech sector of the United Kingdom carried more than 140 merger and acquisition (M&A transactions) during the first half of the year. It had a total value of almost $40 billion (£30.48 billion). It is recorded an increase of more than 26 percent in the same period during the previous year.
The Fintech M&A market report was compiled by Hampleton Partners. It says that the increase in transaction values can be associated to an embrace of digital banking, payments and financial data services from enterprises and consumers, as exemplified by the acquisition of Blackstone of Thomson Reuters in a deal that was valued at $17 billion. The said deal was completed at the beginning of the month.
Jo Goodson, the managing partner of Hampleton Partners, stated: “Fintech M&A activity is coming of age after the initial surge in somewhat random deal-making amongst the very early innovators. Now, corporate and financial buyers alike are chasing larger and more targeted investments which can help streamline back-office operations, improve the digital customer experience and cut costs.”
The hallmark deals that were signed during the first half of the year include the $2.2 billion all-cash acquisition of Paypal of iZettle, a payments provider that is based in Stockholm, as well as the acquisition of the payments unit of SIX Group, a Swiss stock market operator, by Worldline, a French payment services business, in a deal that amounted to $2.75 billion.
Goodson said that she expected to observe a number of blockchain solutions that will enter the market for the remainder of the year and going into the coming year, along with a major wave of deals from insurtech.
She added: “Going forward, the implementation of Europe’s Revised Payment Service Directive, or PSD2, is likely to be a major game changer for the deal landscape, as it encourages pan-European competition and participation.”