Berkery Noyes releases 2011 year-end Financial Technology & Information Industry M&A Acquisitions Report

Berkery Noyes has released its 2011 Full Year Mergers and Acquisitions Trend Report for the Financial Technology & Information Industry.

The report analyses the sector for 2011 and compares it with similar activity in 2009 and 2010. This market includes information and technology companies in capital markets, payments, banking, insurance and other related financial services.

  • The most active acquirer between 2009 and 2011 was Thomson Reuters with 11 transactions.
  • Total transaction volume in 2011 increased by 2 percent over 2010, from 266 to 271 transactions.
  • Total transaction value in 2011 increased by 43 percent over 2010, from $20.52 billion in 2010 to $29.78 billion this year.
  • The median revenue multiple increased from 2.2x in 2010 to 2.6x in 2011, while the median EBITDA multiple decreased from 13.5x to 11.6x.

There has been a consistent improvement in the number of Capital Markets transactions, which was the only segment that saw an increase from 2010 to 2011. Indeed, the most active market segment tracked by Berkery Noyes between 2009 and 2011 was Capital Markets with 254 transactions, 100 of which were announced or closed in 2011. The segment’s transaction value for the year was $18.17 billion.

“At present we are seeing destructive creativity going on in a number of financial service sectors,” said Peter Ognibene, Berkery Noyes managing director. “For instance, smart phones have become digital wallets and are enabling a host of banking and other mobile commerce activities. There has also been an increase in consumer focus on wealth management strategies. And as always in times of turmoil and uncertainty – there is a desire for more precise and forward looking risk management tools, especially enterprise-wide.”

Click here to read the full report.

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