hw&co. financial technology report q1:2013 · announced date target/issuer buyer enterprise...
TRANSCRIPT
Harris Williams & Co.’s Technology, Media & Telecom (TMT) Group is dedicated to providing superior
merger & acquisition and capital markets advisory services to market leading companies. Our extensive
industry knowledge and transaction leadership experience spans the software, digital media, IT services, and
communications sectors.
We are pleased to issue the Q1:2013 Financial Technology Report, which provides commentary and
analysis on the current FinTech M&A environment and key trends. We cover the following three FinTech
subsectors in this report:
FinTech Report
Contents
HW&Co. Financial Technology Report
Q1:2013
Derek Swaim
Director
Technology, Media & Telecom
Harris Williams & Co.
+1 (617) 654-2109
Payment Solutions Banking Solutions Asset Management and Trading
(AMT) Solutions
Market Insights and M&A Market Overview
Select Key Strategic Activity
Public Valuation Trends
Section
HW&Co.
FinTech Contact
Information
For more information regarding Harris Williams & Co.’s Financial Technology transaction experience, please
contact:
1
2-3
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Payment
Solutions
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Banking
Solutions
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AMT
Solutions
Announced Date Target/Issuer Buyer Enterprise Value
12/21/2012 Trans Infotech Pte. Ltd. Wirecard AG $34
12/17/2012 Multi Service Corporation World Fuel Services Corp. $137
12/11/2012 TNS Inc. Siris Capital $841
12/06/2012 PowerPay, LLC EVO Payments International, LLC NA
11/29/2012 Deutsche Card Services GmbH EVO Payments International, LLC NA
11/28/2012 Dependable/Discount Payment Processing, Inc. Financial Transaction Services, LLC NA
11/28/2012 Retalix Ltd. NCR Corp. $613
11/27/2012 FSV Payment Systems, Inc. Genpass Technologies LLC NA
11/15/2012 ProPay Inc. Total System Services, Inc. NA
11/07/2012 PT Integra Pratama, Point of Sale Activity Ingenico SA NA
11/06/2012 nFinanSe Inc AccountNow, Inc. NA
10/31/2012 Litle & Co. LLC Vantiv, LLC $361
10/19/2012 ViVOtech Incorporated Sequent Software, Inc. NA
10/16/2012 T-Chek Systems, Inc. Electronic Funds Source, LLC $303
10/16/2012 Enterprise jBilling Software Ltd. Origo Networks, Inc. NA
Market Insights
Deal Commentary
Retalix/NCR: Retalix offers
solutions for point-of-sale (POS),
sales channels and in-store
management, customer marketing,
merchandising, and logistics. The
Company’s software and services
are deployed in more than 70,000
retail locations in more than 50
countries. NCR plans to build upon
the business it has built from its
$1.2 billion mid-2011 acquisition of
POS software provider Radiant
Systems.
(EV/Rev.=2.3x;EV/EBITDA=25.5x)
Litle & Co./Vantiv: Litle is a fully-
integrated payments solution for
companies that sell goods and
services to consumers over the
internet and through direct response
marketing. The acquisition of Litle
increases Vantiv's capabilities in
eCommerce, expands its online
merchant customer base, and
provides cross-selling opportunities
of Litle's solutions to current Vantiv
customers.
Recent M&A Transactions
Select Prior M&A Transactions
M&A Market
Overview
Payment Solutions Trends
Mobile Point-of-Sale (mPOS) Market Heating Up
As mPOS competition heats up to win new small business customers and provide
payment alternatives to large enterprises, there remains an opportunity to capture
medium-sized business market share.
Flexible Application Programming Interfaces (API)
Developers, frustrated with the lack of current options available, are seeking flexible
payment options to support new monetization models.
Popularity of Quick Response (QR) Codes for Mobile Payments
Both mobile OEMs and merchants are adopting QR codes in order to provide new
payment options, while keeping infrastructure and implementation costs low.
mPOS Articles
• No Swiping Fees for Small Businesses
• mPOS Powering Roving Salespeople
• White-label mPOS for Corporations
API Articles
• Helping Developers Integrate Payments
• An API for Credit Cards
• Building Payment Services via API
QR Articles
• Apple’s Upcoming Use of QR Codes
• Microsoft’s QR Code Deal
• T Passes in Boston Will Use QR Codes
HW&Co. Financial Technology Report Payment Solutions
($ in millions)
($ in millions)
1
Announced Date Target/Issuer Buyer Enterprise Value
08/14/2012 Accelerated Payment Technologies, Inc. Global Payments Inc. $413
06/30/2012 Merchant e-Solutions, Inc. Cielo SA $670
04/02/2012 TxVia, Inc. Google Inc. NA
07/07/2011 Zong, Inc. PayPal, Inc. $240
06/29/2011 CashEdge, Inc. Fiserv, Inc. $460
04/28/2011 Fig Card Corporation PayPal, Inc. NA
01/01/2011 SPC, Inc. (nka:TSYS Merchant Solutions, LLC) Total System Services, Inc. $355
08/19/2010 DataCash Group plc (nka:Datacash Group Limited) MasterCard/Europay U.K. Limited $491
08/06/2010 RBS WorldPay, Inc. (nka:WorldPay US, Inc.) Advent International; Bain Capital $3,716
04/20/2010 CyberSource Corporation Visa, Inc. $1,843
Transaction Network Services
(TNS)/Trident: TNS provides
networking, managed connectivity,
and data communications
internationally. The deal is
expected to help TNS move from
being a legacy network provider to
building “value-added” data
communication applications for
several of its businesses, including
its TNS Secure Payments Network.
(EV/Rev.=1.5x;EV/EBITDA=6.5x)
• Oct. 2012 – Announced launch of instant credit and
debit card issuance services
• June 2012 – Launched Central Source Capture for
automating financial institutions’ check processing
• Sept. 2011 – Acquired CashEdge for $465 million
to expand digital payments offering
Emerging Payment Providers Select Key
Strategic Activity
Payment Processors and Technology
• Dec. 2012 – Acquired ProPay, a provider of secure
payment solutions
• Sept. 2012 – Announced new NFC payment suite
• Aug. 2012 – Acquired 60% ownership in a joint
venture with Central Payment
• Aug. 2012 – Acquired Merchant Solutions, a
provider of payment solutions in Asia
• Sept. 2012 – Announced plans for Australian
version of the U.K. Faster Payments service with
partners VocaLink and Accenture
• June 2012 – Invested $18 million in German
operations
HW&Co. Financial Technology Report Payment Solutions
• Dec. 2012 – Introduced gift cards through Square
Wallet
• Sept. 2012 – Closed $200 million Series D
financing round at a $3.25 billion valuation
• Aug. 2012 – Starbucks invested $25 million in
Square and began partnership program
• Oct. 2012 – Announced launching in Salt Lake
City and Austin on October 22nd
• Sept. 2012 – Experienced a series of launch
delays, pushing the date past the expected launch
date
• Aug. 2011 – AT&T, T-Mobile, and Verizon
invest $100 million in the Isis venture
• Nov. 2012 – Launched GoPayment mPOS in the
U.K.
• Oct. 2012 – Launched new online and mobile
platform for financial institutions
• March 2012 – Launched several new mobile
banking and payment services for SMBs, such as
Weave and MyBizTracker
• Sept. 2012 – Accepting mobile payments for its
mobile web service via carrier billing in the U.S.,
U.K., and Germany
• May 2012 – Acquired mobile gifting service
Karma Science
• Feb. 2012 – S-1 revealed $557 million in
payments revenue for 2011
• Oct. 2012 – Gap and Dunkin’ Brands, among
others, join the MCX
• Aug. 2012 – Announced formation of Merchant
Customer Exchange (MCX), a consortium of
large retailers developing a mobile commerce
application
• Dec. 2012 – Launched PayPal My Cash Card for
online shopping
• Aug. 2012 – Announced partnership with
Discover, enabling PayPal to reach millions of in-
store locations
• July 2012 – Acquired card.io, a provider of card
imaging technology
• Oct. 2012 – Acquired e-commerce payment
processor Litle & Co. for $361 million
• Sept. 2012 – Expanded relationship with Discover
by supporting PayPal’s in-store checkout efforts
• Aug. 2012 – Introduced Vantiv Mobile Accept, the
company’s first mobile payment application
2
• Sept. 2012 – Released iPhone 5 with new
Passbook application; did not include NFC
capabilities
• Nov. 2011 – Announced implementation of
Ingenico’s iSMP addon device for enabled mobile
payment capabilities on the iPhone
Diversified Hardware / Software Providers
HW&Co. Financial Technology Report Payment Solutions
• Oct. 2012 – Confirmed that Google Wallet users
will be able to purchase Web content
• Sept. 2012 – Verizon continues to block the
Google Wallet on the Galaxy Nexus
• April 2012 – Acquired payment technology
company TxVia in order to accelerate its “full
Google Wallet vision”
• June 2012 – Announced Windows Phone 8
Wallet Hub with NFC functionality
• May 2012 – Struck deal with Telefónica to enable
users to pay for content through their mobile
phone bills
• Feb. 2012 – AmEx announced plan to utilize
Kinect for financial services applications
Select Key
Strategic Activity
Payment Networks
• Nov. 2012 – Debuted membership rewards for
Mobile Gift Cards program
• Oct. 2012 – Launched Bluebird alongside
Walmart to provide alternative financial services
to consumers
• Jan. 2012 – Invested $125 million in Chinese
mobile micro payment company Lianlian Pay
• Dec. 2012 – Announced strategic partnership and
investment in mobile wallet provider C-SAM
• September 2012 – Acquired Truaxis, a provider of
loyalty rewards for debit and credit cards
• August 2012 – Signed five year deal with
Everything Everywhere for NFC / mobile payments
• Nov. 2012 – Partnered with more than 50
financial institutions for V.me digital wallet
implementation
• May 2012 – Participated in $30 million funding
round for Internet security solution provider
SecureKey Technologies
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Public Valuation
Trends Historical Multiples(1)
Source: CapitalIQ.
(1) Payment Solutions index includes: ACI Worldwide, Bottomline Technologies, Euronet Worldwide, Fiserv, Global Payments, Green Dot Corporation, Heartland
Payment Systems, MasterCard, Total System Services, Vantiv, Visa, and Western Union.
Q4:2012 Multiples(1)
Public Trading
Multiples
Payment Solutions
Fiserv, Inc. 10,767,267$ 13,909,267$ 3.1x 3.1x 10.2x 9.7x
The Western Union Company 8,071,714 10,066,814 1.8x 1.8x 6.0x 6.3x
Total System Services, Inc. 4,181,429 4,119,173 2.2x 2.2x 8.8x 7.8x
Global Payments Inc. 3,657,619 3,492,615 1.6x 1.5x 7.2x 7.2x
Vantiv, Inc. 2,881,345 4,460,524 2.5x 4.3x 8.7x 8.9x
ACI Worldwide, Inc. 1,760,074 2,069,217 3.6x 3.0x 18.8x 11.1x
Euronet Worldwide Inc. 1,198,511 1,272,702 1.0x 1.0x 8.7x 7.9x
Heartland Payment Systems, Inc. 1,137,502 1,163,914 0.6x 2.1x 8.6x 7.7x
Bottomline Technologies (de), Inc. 1,018,856 911,721 3.9x 3.8x 30.4x 20.7x
Green Dot Corporation 450,567 262,662 0.5x 0.5x 2.7x 2.4x
Payment Solutions Median 2,320,709$ 2,780,916$ 2.0x 2.2x 8.7x 7.9x
Payment Networks
Visa Inc. 103,929,580$ 101,112,580$ 9.7x 9.5x 15.4x 15.1x
Mastercard Incorporated 63,497,345 57,834,345 8.0x 7.8x 14.2x 13.9x
Payment Networks Median 83,713,463$ 79,473,463$ 8.9x 8.6x 14.8x 14.5x
Total Median 3,269,482$ 3,805,894$ 2.3x 2.6x 8.8x 8.4x
Trading Multiples of Public Comparables
As of December 31, 2012
($ in 000s)
Multiples Summary
Market Enterprise Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Value CY2011 CY2012P CY2011 CY2012P
HW&Co. Financial Technology Report Payment Solutions
4
Deal Commentary
Announced Date Target/Issuer Buyer Enterprise Value
12/20/2012 Bloomspot, Inc. Chase Bank USA, National Association NA
10/12/2012 Hoell Computer & Software GmbH Avaloq Group AG NA
09/20/2012 edge IPK Limited Temenos Group AG NA
09/07/2012 Transoft International, Inc. NCR Corp. NA
08/30/2012 UNIK S/A Wright Express Corp. $43
07/31/2012 MoneyReef, LLC MoneyDesktop, Inc. NA
07/16/2012 Financial Architects nv Wolters Kluwer Financial Services, Inc. NA
07/11/2012 SwiftKnowledge, LLC SNL Financial LC NA
06/27/2012 ABI Informatic AG AIM Software GmbH NA
06/25/2012 FIS, Healthcare Solutions Business Lightyear Capital LLC $335
04/10/2012 Clavelink Consultoria FircoSoft SAS NA
03/24/2012 ClairMail, Inc. Monitise plc $174
02/29/2012 Beacon Software, Inc. Integrated Bank Technology, Inc. NA
02/26/2012 Banks.com, Inc Remark Media, Inc. $5
02/07/2012 Misys plc Vista Equity Partners $2,042
Announced Date Target/Issuer Buyer Enterprise Value
06/29/2011 CashEdge, Inc. Fiserv, Inc. $460
06/06/2011 Fundamo (Pty) Ltd. Visa, Inc. $110
01/14/2011 Detica Group Holdings (Ireland) Limited BAE Systems (Holdings) Ltd. $223
09/27/2010 Odyssey Financial Technologies S.A. Temenos Group AG $101
05/06/2010 iPay Technologies, LLC Jack Henry & Associates Inc. $301
04/20/2010 Sybase, Inc. SAP America, Inc. $5,423
01/25/2010 OneVu Limited VocaLink Limited NA
12/23/2009 Viveo Group SAS Temenos Group AG $81
12/23/2009 Financial Software & Systems (P) Ltd. New Enterprise Associates; Jacob Ballas Capital $150
10/29/2009 Pemco Technology Services, Inc. Jack Henry & Associates Inc. $60
HW&Co. Financial Technology Report Banking Solutions
Financial Architects/Wolters
Kluwer: Financial Architects
develops financial management
and business intelligence software
for banks and financial institutions
globally. While the product,
Financial Studio, is in itself a gain
for Wolters Kluwer, the base data
platform is of equal interest. Brian
Longe, CEO of Wolters Kluwer
Financial & Compliance Services
stated, “We could also combine
our credit risk or anti-money
laundering system with the FinArch
data management platform.”
Transoft/NCR: Transoft is a
global leader in cash cost
optimization software for financial
institutions and retailers. NCR will
integrate Transoft's software and
SaaS-based product suite into its
Financial Services line of business
in order to strengthen NCR's
existing cash management offering.
SwiftKnowledge/SNL:
SwiftKnowledge provides Web-
based business intelligence
software solutions in the United
States and internationally. By
integrating SwiftKnowledge into
the new SNLBanker solution, SNL
can now offer a single platform for
monitoring and analyzing a bank's
daily and monthly internal
operations, as well as external
information such as news, peer
data, competitive rate pricing, and
demographics.
Recent M&A Transactions
Select Prior M&A Transactions
Market Insights
M&A Market
Overview
Banking Solutions Trends Online Banking Articles
• Making Banking Less Painful
• Financial Health Via Social Analysis
• Online Tools for Financial Institutions
ACH Articles
• New Era for SMB Banking
• Eliminating ACH Delays
• Visibility / Control of B2B Payments
Debt Management Articles
• Visualizing and Managing Student Debt
• Managing Loans with Less Confusion
• Analyze Your Financial Situation Online
Enhanced Online Banking Experiences
As banking customers increasingly utilize multiple points of access to their accounts,
many banks are offering simple, yet robust, tools that enhance or replace the
traditional branch banking experience.
Better Automated Clearing House (ACH) Solutions
As the pace of transaction processing continues to accelerate, banks are finding that
multi-day transfer delays are no longer acceptable as customers demand speed,
visibility, and control.
Focused Debt Management Technology Solutions
The competition for helping consumers refinance their debt is heating up, as
customers look for better tools to manage their loans and minimize their costs.
($ in millions)
($ in millions)
5
HW&Co. Financial Technology Report Banking Solutions
• Nov. 2012 – Selected by AmEx Bluebird for
InstantFunds remote check capture technology
• June 2012 – Sold Healthcare Benefit Solutions
business to Lightyear Capital for $335 million
• Nov. 2011 – Participated in $18 million
investment round for mobile financial services
provider mFoundry
• Oct. 2012 – Introduced MaxConnect Interactive
(via ProfitStars), a Web-based loan and deposit
pricing engine
• June 2012 – Launched iBizManager to provide
mobile banking functionality to businesses
• May 2010 – Acquired online billing company
iPay Technologies for $301 million
• July 2012 – Acquired LendingSpace Partners, a
provider of Web-based mortgage loan origination
software solutions, for $11 million
• March 2011 – Acquired PCLender, a provider of
Web-based software and services for the
mortgage industry, for $13 million
• Sept. 2012 – Acquired Edge IPK Limited, which
delivers business process solutions for the
financial services sector
• March 2012 – Merger talks with British banking
software firm Misys ended when the two parties
could not agree on terms
• May 2012 – Acquired Avista Solutions, a
provider of mortgage loan origination software,
for $40 million
• April 2011 – Acquired Mortgagebot, a provider
of Web-based mortgage point-of-sale solutions,
for $232 million
• June 2012 – Vista acquired the company for over
$2 billion and merged it with Turaz
• March 2012 – Transaction discussions occur with
Temenos, Vista Equity Partners, and the duo of
CVC Capital Partners and ValueAct Capital
• Nov. 2010 – Acquired capital markets software
vendor Sophis for $604 million
Banking Solutions Providers Select Key
Strategic Activity
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Historical Multiples(1)
Source: CapitalIQ.
(1) Banking Solutions index includes: FIS, Jack Henry, LPS, Oracle Financial Services Software, Polaris Financial Technology, and Temenos.
Q4:2012 Multiples(1)
Multiples Summary
Market Enterprise Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Value CY2011 CY2012P CY2011 CY2012P
Trading Multiples of Public Comparables
As of December 31, 2012
($ in 000s)
Banking Solutions
Fidelity National Information Services, Inc. 10,429,060$ 14,541,360$ 2.5x 2.5x 8.5x 8.3x
Oracle Financial Services Software Limited 5,106,065 4,264,848 6.6x 6.7x 18.3x 19.2x
Jack Henry & Associates Inc. 3,521,246 3,430,263 3.3x 3.2x 10.1x 9.9x
Lender Processing Services, Inc. 2,195,970 3,121,854 1.5x 1.5x 11.4x 5.9x
Temenos Group AG 1,226,123 1,402,418 3.2x 3.1x 29.9x 13.0x
Polaris Financial Technology Limited 213,950 158,450 0.4x 0.4x 2.5x 2.7x
Median 2,858,608$ 3,276,059$ 2.8x 2.8x 10.7x 9.1x
HW&Co. Financial Technology Report Banking Solutions
Public Valuation
Trends
Public Trading
Multiples
7
Deal Commentary
Announced Date Target/Issuer Buyer Enterprise Value
12/20/2012 NYSE Euronext, Inc. IntercontinentalExchange, Inc. $10,511
12/17/2012 Oslo Clearing ASA SIX Group AG $32
11/13/2012 Fundspire Inc. eVestment Alliance, LLC NA
11/13/2012 PerTrac Financial Solutions, LLC eVestment Alliance, LLC NA
10/26/2012 Xtrakter Limited MarketAxess Holdings Inc. $42
10/22/2012 RedKite Financial Markets Ltd. Actimize, Inc. NA
10/18/2012 Hedgemetrix LLC SS&C Technologies Holdings, Inc. NA
10/17/2012 Pyxis Systems Pvt. Ltd. Polaris Financial Technology Limited NA
10/16/2012 Burgundy AB Oslo Børs ASA NA
10/12/2012 Investment Cafe, LLC eFront SA NA
10/09/2012 Zephyr Associates, Inc. Informa Investment Solutions, Inc. $62
09/28/2012 Redshift Horizons First Derivatives plc $5
09/28/2012 Gravity Financial, LLC (nka:SS&C GlobeOp) SS&C Technologies Holdings, Inc. NA
09/26/2012 Track.com, LLC FX Concepts, LLC NA
09/14/2012 Nyenburgh Holding B.V. Virtu Financial LLC NA
HW&Co. Financial Technology Report Asset Management and Trading Solutions
Fundspire & PerTrac/eVestment
Alliance: Fundspire is a cloud-
based provider of hedge fund
analytics. PerTrac is a provider of
hedge fund analysis software and
workflow solutions. eVestment
management believes customers
are moving toward a hybrid model
of investing, where alternative and
traditional investments combine in
a singular marketplace. With the
acquisitions, eVestment now serves
over 2,500 clients across the entire
investment industry spectrum.
Hedgemetrix/SS&C: Hedgemetrix
provides premium accounting and
administration services to hedge
funds, private equity funds, funds of
funds, and their investment
managers. The acquisition of
Hedgemetrix will enhance the
services options SS&C provides to
existing customers, will add 20
additional customers, and will
operate as part of SS&C’s
GlobeOp business.
Pyxis/Polaris: Pyxis is a
specialized player in technologies
for global markets front office and
market risk related to cash and
derivatives. Polaris offers solutions
for core banking, corporate
banking, wealth & asset
management, and insurance
providers. Polaris acquired Pyxis
customer contracts within its
domain expertise.
Recent M&A Transactions
Select Prior M&A Transactions
Market Insights
M&A Market
Overview
Announced Date Target/Issuer Buyer Enterprise Value
05/17/2012 FX Alliance Inc Thomson Reuters Corporation $611
04/30/2012 Alpha Trading Systems Ltd. The Maple Group $177
02/28/2012 Thomson Reuters, Portia Investment Operations SS&C Technologies Holdings, Inc. $170
02/23/2012 GlobeOp Financial Services S.A SS&C Technologies Holdings, Inc. $717
02/16/2012 360 Treasury Systems AG Summit Partners NA
09/28/2011 Triple Point Technology, Inc. Welsh, Carson, Anderson & Stowe $500
09/23/2011 Turaz Vista Equity Partners NA
07/19/2011 ALPS Funds Services, Inc. DST Systems Inc. $250
05/12/2011 Black Diamond Performance Reporting, LLC Advent Software, Inc. $72
02/18/2011 Chi-X Europe Ltd. Bats Trading, Inc. $300
11/23/2010 Matrix Financial Solutions, Inc. Broadridge Investor Communication Solutions, Inc. $201
02/28/2010 RiskMetrics Group, Inc. MSCI Inc. $1,619
Asset Management and Trading Solutions Trends Personal Investing Articles
• Democratizing Financial Advice Access
• Comparing Investment Vehicles Online
• Future Impact of Asset Purchases
Crowdsourced Equity Articles
• Redefining VC Through Crowdfunding
• Managing A Social Capital Raise
• A Marketplace for Startups and Angels
Bond Platform Articles
• Preparing for More Derivatives Trading
• Betting on a Proprietary Platform
• Greater Corporate Debt Liquidity
Data-driven, Online Personal Investing
Financial services companies are broadening their access to new clients, as
consumers feel increasingly comfortable buying services through the use of web-
based comparison tools.
Crowdsourced Startup Equity Investment Marketplaces
Although traditional financial sponsor models remain intact, both entrepreneurs and
sponsors are increasingly experimenting with new, social investing models.
Electronic Bond Trading Platforms
Both increased governmental regulation and the need for more efficient trading
infrastructure has spawned a platform war among the major traders of fixed assets.
($ in millions)
($ in millions)
8
HW&Co. Financial Technology Report Asset Management and Trading Solutions
Asset Management and Trading Solutions Providers
• Sept. 2012 – Announced the availability of a
multi-custodial rebalancing solution for its Black
Diamond platform
• June 2011 – Acquired web-based portfolio
management platform provider Black Diamond
for $72 million
• Oct. 2012 – Announced the acquisition of
Hedgemetrix, a fund administrator
• March 2012 – Trumped a bid by TPG Capital in
order to acquire GlobeOp Financial Services for
$818 million
• Oct. 2012 – Acquired capital market benchmark
provider IPD Group for $125 million
• June 2010 – Acquired RiskMetrics for $1.6
billion to expand multi-asset class risk
management analytics offering
• Sept. 2012 – Launched bank-to-client
communications tool Fluent for enhancing
customer engagement
• Sept. 2011 – Acquired Paladyne Systems for $77
million to complement the offerings of
Broadridge’s Securities Processing Solutions
division
• Nov. 2012 – Named European Asset Servicing
Technology Vendor of the Year
• July 2011 – Acquired ALPS for $250 million,
which provides asset servicing and asset
gathering solutions
• July 2012 – Launched a new Canadian trading
platform
• Jan. 2012 – Launched Fidessa Intelligence
product suite, offering enhanced financial
analysis tools for both buy-side and sell-side
firms
Select Key
Strategic Activity
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Asset Management and Trading Solutions
AMT Software Providers
MSCI Inc. 3,903,388$ 4,334,528$ 4.7x 4.6x 10.4x 10.0x
Broadridge Financial Solutions, Inc. 2,869,843 3,182,443 1.4x 1.4x 9.3x 7.6x
DST Systems Inc. 2,784,925 3,455,325 1.4x 1.8x 9.6x 8.3x
SS&C Technologies Holdings, Inc. 1,821,527 2,812,070 5.9x 5.1x 15.7x 13.4x
Advent Software, Inc. 1,118,847 1,020,418 2.9x 2.8x 14.5x 10.6x
SimCorp A/S 958,226 903,824 3.4x 3.3x 14.2x 13.5x
Fidessa group plc 899,757 820,259 1.9x 1.8x 9.1x 8.2x
Envestnet, Inc. 448,205 427,072 3.0x 2.7x 27.7x 18.0x
AMT Software Providers Median 1,470,187$ 1,916,244$ 2.9x 2.8x 12.3x 10.3x
Business Information Providers
Thomson Reuters Corporation 24,295,344$ 31,057,344$ 2.3x 2.4x 10.3x 8.6x
Moody's Corp. 11,586,342 11,832,342 4.7x 4.5x 10.9x 10.2x
FactSet Research Systems Inc. 3,987,443 3,762,204 4.6x 4.6x 12.1x 11.8x
Dun & Bradstreet Corp. 3,507,711 4,398,711 2.6x 2.6x 8.3x 7.7x
Fair Isaac Corporation 1,504,530 1,914,913 2.8x 2.8x 9.8x 10.1x
Business Information Providers Median 3,987,443$ 4,398,711$ 2.8x 2.8x 10.3x 10.1x
Total Median 2,784,925$ 3,182,443$ 2.9x 2.8x 10.7x 10.1x
0.0x2.5x5.0x7.5x10.0x12.5x15.0x17.5x20.0x22.5x25.0x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
EB
ITD
A M
ultip
leRev
en
ue M
ult
iple
Revenue Multiple EBITDA Multiple
Historical Multiples(1)
Source: CapitalIQ.
(1) Asset Management and Trading Solutions index includes: Advent Software, Broadridge, DST Systems, Evestnet, Fidessa, MSCI, SimCorp, and SS&C Technologies.
Q4:2012 Multiples(1)
Trading Multiples of Public Comparables
As of December 31, 2012
($ in 000s)
Multiples Summary
Market Enterprise Enterprise Value/Revenue Enterprise Value/EBITDA
Company Capitalization Value CY2011 CY2012P CY2011 CY2012P
HW&Co. Financial Technology Report Asset Management and Trading Solutions
Public Valuation
Trends
Public Trading
Multiples
10
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