TransactionWatchWeekly Newsletter For Payments Executives That Covers The Most Important And Relevant Merchant Acquiring Deals And Activity

This report is based upon information considered reliable by The Strawhecker Group® (TSG), but the accuracy and completeness of such information is not guaranteed or warrantedto be error-free. Information provided is as reasonably available, not to be deemed all inclusive. TSG assumes no obligation to update the content hereof. This report is subject tothe terms and conditions of a separate license with recipient, is further protected by copyright under U.S. Copyright laws and is the property of TSG. Recipient may not copy,reproduce, distribute, publish, display, modify, create derivative works, transmit, exploit, or otherwise disseminate any part of this report except as expressly permitted underrecipient’s license with TSG. The Strawhecker Group (TSG) is not endorsed, sponsored by, or in any other way affiliated with any companies identified in this presentation. Thetrademarks of third parties displayed herein are the property of such parties, and, are provided merely for identification purposes. TSG claims no rights therein. This document hasnot been prepared, approved or licensed by any entity identified in this report.© Copyright 2020. The Strawhecker Group ®. All Rights Reserved.

Week of:

January 6th – January 10th

Example Edition

Lightspeed Invests Further Into Europe With Acquisition of German-based ISV, GastrofixIn their efforts to increase their presence in western Europe, Lightspeed POS Inc. announces the acquisition of Gastrofix, a growing cloud-based POS provider based in Germany. This acquisition will add more than 8,000 merchant locations to Lightspeed’s portfolio which already contains nearly 57,000 SMB retailers and restaurants worldwide.

This acquisition complements Lightspeed’s current array of products and services as it resembles their existing cloud-based POS solutions. The acquisition follows suite of Lightspeed’s 2019 acquisitions of iKentoo and Kounta which were both leaders in hospitality POS solutions in their respective countries. Lightspeed’s growth strategy through acquisitions will ultimately help the company grow and gain traction in a smaller amount of time across geographical locations.

2CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Table of Contents

Deal Of The Week

Notable Transactions

Historical M&A Tracker

Headline News

Partnership Activity

Management Changes

TSG Payments Index

TSG Buy/Sell Services

*As of publication.Note: TSG’s selected M&A activity monitors specific markets relating to the acquiring industry and the general payments market.

Deal of the WeekJanuary 6th – January 10th

TSG Deal of the Week

0

2

4

6

June July Aug Sept Oct Nov Dec Jan 2020*

2020/2019 M&A Activity – Year to DateBreakout by Transaction Category

ISO (Independent Sales Organization) ISV (Independent Software Vendor)

Gateway Other (Includes notable deals that TSG deems significant)

Example Edition

3

Deal AnalysisLightspeed’s complementary acquisition of Gastrofix aligns with the company’s previous acquisitions of iKentoo and Kounta in 2019. Lightspeed’s strategy is to grow fast in new markets through key acquisitions that have already obtained market share in their respective country.

Transaction DetailsDate Announced: January 6, 2020▪ ~$61 million in cash on closing▪ Issuance of 1,437,930 in subordinate voting shares

▪ Valued at $28.16 per share▪ Gastrofix employees can earn an additional $4 million in deferred

cash along with the issuance of 95,464 subordinate shares valued at $28.16 per share if various performance objectives are met

▪ An additional amount up to $10.6 million and 250,598 voting shares are payable to selling shareholders of Gastrofix

Weekly Notable TransactionsJanuary 6th – January 10th

Acquired

For a total consideration of

$100,000,000+

Acquired

Acquisition closed on

January 8, 2020

Deal AnalysisNets announced their acquisition of Poplatek, a payment service provider based in Finland, and their spin-off company Poplapay, a provider of payment terminal services. Poplatek and Poplapay employ approximately 40 individuals and have a combined annual revenue of around $5.5 million. Together these acquisitions help strengthen Nets’ in-store payment terminal services across their European operations.

Transaction DetailsDate Announced: January 9, 2020▪ Terms were not disclosed▪ Acquisition closed on January 8, 2020

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

Transaction Category

Buyer SellerPurchase Amount

($ million)Date

ISV Nets Poplatek - 1/9/2020

ISV MTBC CareCloud - 1/8/2020

ISV Lightspeed Gastrofix $100+ 1/7/2020

Other Mastercard RiskRecon - 12/23/2019

Other NCR Zynstra $129 12/23/2019

ISO Lovell Minnick Partners Fortis Payments - 12/17/2019

Other DeluxeFiserv

(Remittance Solutions assets)- 12/17/2019

ISV Rev19 PayK12 - 12/16/2019

Other Great Hill Partners VersaPay $95.6 12/13/2019

Other Payoneer Optile - 12/10/2019

ISO Pineapple Payments Paystri - 12/4/2019

Other Mastercard RiskRecon - 12/23/20194

Transaction Categories:

ISOIndependent

Sales Organization

ISVIndependent

Software Vendor

Gateway OtherIncludes notable deals that TSG

deems significant

Historical M&A TrackerTransaction History: August 2019 – December 2019

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

Transaction Category

Buyer SellerPurchase Amount

($ million)Date

ISV Sage CakeHR - 11/28/2019

Other PayPal Honey $4,000 11/20/2019

ISO Rev19 PurePayments - 11/19/2019

ISO Rev19 Renaissance Associates - 11/19/2019

Other NCR POS Solutions - 11/19/2019

Gateway Elavon Sage Pay $300 11/18/2019

Other EMLPrepaid Financial

Services$290 11/11/2019

Other Wirecard AllScore $80.1 11/5/2019

Other Global Payments Desjardins - 10/31/2019

Gateway BlueSnap Armatic - 10/30/2019

ISO BluePay, NxGen, PayScape PayRoc - 10/27/2019

Other Berkeley Pungle - 10/25/2019

ISO NxGen, Payscape BluePay Canada - 10/25/2019

Other Mastercard SessionM - 10/22/2019

Other Lightspeed Kounta $35.3 10/21/2019

ISO REPAY APS Payments $60.0 10/14/2019

Other NCR Midwest POS Solutions - 10/7/2019

5

Historical M&A TrackerTransaction History: August 2019 – December 2019

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Trial Edition

Transaction Category

Buyer SellerPurchase Amount

($ million)Date

ISO C&H FinancialMann Merchant

Processing Systems- 10/3/2019

ISO Elavon Payius - 10/3/2019

ISO Rev19 Royal Merchant Services - 10/2/2019

ISO Rev19ValuPlus Merchants

Association- 10/2/2019

Other PayPal GoPay - 9/30/2019

Other EVO Payments Delego Software - 9/10/2019

Other Shopify 6 River Systems $450.0 9/9/2019

Other US Bank Talech - 9/9/2019

Other Kabbage Radius Intelligence - 9/3/2019

Other Payment Alliance Eclipse Cash Systems - 8/26/2019

Other CIT Group Mutual of Omaha Bank $1,000.0 8/14/2019

ISO REPAY TriSource Solutions $65.0 8/14/2019

Other Lavu Sourcery - 8/8/2019

Other Mastercard Nets $3,190.0 8/6/2019

Gateway KKR Heidelpay $668.0 8/5/2019

ISV DoorDash Caviar $410.0 8/2/2019

Gateway Zelis Payments RedCard Systems - 8/1/2019

6

Historical M&A TrackerTransaction History: August 2019 – December 2019

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

AmEx Moves Closer to Entering China’s $27 Trillion MarketBloomberg | January 8, 2020American Express Co. cleared a key hurdle in its bid to accessing China’s $27 trillion payments market after the central bank accepted its application to start a bank card clearing business. The People Bank of China made the announcement on its official WeChat account, without giving more details. The decision to accept the application signals that it’s moving closer to final approval.

PayPal Finalizes $4B Honey AcquisitionPYNMTS | January 6, 2020PayPal has completed a $4 billion deal — its largest to date — to acquire the shopping rewards platform Honey Science Corporation, PayPal announced Monday (Jan. 6). With Honey, PayPal is striving to revamp the shopping journey for its customers while upping eCommerce sales and shopper engagement for its merchants. Founded in 2012, Honey has grown from an eCommerce price-tracking tool to an expanded suite of services that include a shopping assistant and rewards program. With roughly 17 million active users each month and 30,000 diverse online retailers, Honey has delivered some $1 billion in savings to shoppers in the past year.

Clydesdale and Yorkshire Banks Hit by IT FailureThe Guardian| January 6, 2020Customers of Clydesdale and Yorkshire banks have become the latest customers to fall victim to an IT failure after wages and other payments failed to arrive in their accounts on Friday (Jan. 3). The group, which now includes Virgin Money, said it was conducting a “full investigation” after customers took to social media to complain their much-needed January wages had not arrived in their current accounts as expected.

7

Headline NewsJanuary 6th – January 10th

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

Elavon teams up with Mobeewave and Samsung to develop a digital merchant onboarding process for the newly launched Samsung point-of-sale app for the Canadian market. This new POS application will enable merchants in Canada to accept contactless payments through an NFC-enabled mobile device, without the need of additional dongles, card readers, or extra hardware. Elavon will ultimately assist with the onboarding and payment processing for Samsung’s POS application.

Through a partnership with Fiserv and ExxonMobil, Amazon’s Alexa voice assistant will be able to pay for fuel at Exxon and Mobil gas stations in the U.S. Demonstrated first at CES 2020, Alexa-enabled vehicles will allow drivers to say ‘Alexa, pay for gas’ and the assistant will be able to identify the station location and pump number. Using digital commerce technology from Fiserv, the pump will be activated and will transact the payment through the user’s Amazon Pay account.

Other Notable Partnerships:• Bankjoy partners with Zogo to provide a better member experience for credit union’s younger

customers.• Euronet Worldwide partners with Standard Chartered to offer DCC services at ATMs in 14 countries.• Sprint and Wirecard announce partnership to embed payment technology in IoT installations for

clients.• Tencent’s WeChat Pay and UnionPay partner on integrated QR code systems.

8

Partnership ActivityJanuary 6th – January 10th

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

Date Announced

Company Personnel New Position Previous Position

1/7/2020 DayTek Capital Paul Hanks Technology AdvisorChief Technology Officer and Co-Founder at Atom Bank

1/7/2020 Nacha Joe W. Hussey ChairmanCurrently the Managing Director at JPMorgan Chase

1/7/2020 Vesta Leo Khan Chief Marketing OfficerHead of Enterprise Marketing at Signifyd

1/7/2020Paramount

Management Group

Jim Weber Director of OperationsVP of Operations at Payment Alliance International

1/7/2020 Klarna Francine EreiraGeneral Manager for Australia and New Zealand

Executive at Walt Disney

1/8/2020 Citigroup David Chubak Head of U.S. Retail BankingHead of Global Retail Bank & Consumer Lending

9

3C Payment announced that Michele Ferraris has stepped down as CEO and Tim Goodwin will be appointed as the company’s new CEO3C Payment announced on January 7th that Michele Ferraris has stepped down as CEO of the company. He will be succeeded by Tim Goodwin who has been COO of the company since 2016 and has held various roles at the company for 15 years.

Management ChangesJanuary 6th – January 10th

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

$-

$100

$200

$300

$400

$500

$600

$700

Q12011

Q2 Q3 Q4 Q12012

Q2 Q3 Q4 Q12013

Q2 Q3 Q4 Q12014

Q2 Q3 Q4 Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3 Q4

10

TSG Payments IndexQ1 2011 – Q4 2019

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

VS.

TSGPX S&P 500

$649

$244

+23% CAGR

+11% CAGR

Payments companies have been thriving in recent years and are becoming more valuable and profitable for the company and its investors. With strong earnings year after year, many payments companies are rapidly increasing their market capitalization and gaining the attention of additional stakeholders.

The chart displays the performance of a $100 investment in an index of selected payments companies which represent the “TSG Payments Index” – this index is calculated on a value weighted basis using market capitalization and is compared to the S&P 500 which is also calculated using the same methodology. A $100 investment in the TSGPX in Q1 2011 would be valued at approximately $649 in Q4 2019, as compared to $244, if invested in the S&P 500.

On average, payments companies grow at a compounded rate that is 12% higher than that of the industry average. This growth rate is more than double of the industry average and represents the attractiveness of the payments market. The Payments Index is depicted to portray the growing nature of the payments market and hints at where this market is headed in the coming years.

Example Edition

11

Buy-Side• Buyers use TSG’s due-diligence subject matter experts for support on a variety of key decision

criteria can affect the value of the property. TSG assists buyers by acting as their advisor as they evaluate the financial value, benchmarking key performance metrics, determine risk, and evaluate the value of any technology assets.

Sell-Side• The key factor in a successful asset sale is understanding the true value of your enterprise. Value is

defined as the “amount a buyer is willing to pay.” TSG has a pulse of the market and performs an extensive evaluation of value drivers to ensure potential “sellers” understand the value of their company in the marketplace – prior to starting the sales process. In addition, buyers can use the data to assess offers that have been received for an accurate and fact-based assessment of the offer.

Private Equity• TSG can help private equity firms understand the landscape before investing and can build a market

analysis to determine which investment is the best fit to create the highest ROI. TSG provides investors and financial institutions with the documented valuation information needed to support funding events.

Restructuring & Re-Capitalization • TSG can facilitate strategic exercises to help forge a new path ahead and can help with

implementation of a new structure to ultimately maximize the value and performance of the entity.

30+ACQUISITIONS

AND INVESTMENT

TRANSACTIONS

250+COMPLETED

PAYMENTS CO.

VALUATIONS

8 of 12OF THE LARGEST

PAYMENTS TRANS

IN THE LAST YEAR

$10-100MTYPICAL DEAL

RANGE

TSG Buy/Sell Consulting Services

CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

TSG Buy/Sell Consulting Services

In its sale to

TSG Has Advised For Many Leading Companies in the Payments Industry

In the acquisition of

In the acquisition of

In its Merger with

In the acquisition of

&

In its sale to

On their funding event with

On their funding event with

In the acquisition of

In due diligence support of its investment into

In its recapitalization of

In a merchant portfolio purchase from

In its merger with

On their investment in

In the acquisition of

In acquisition of the operation assets of

In the acquisition of

In the acquisition of

On the organization of its joint venture with

On their joint venture with

17CONFIDENTIAL. FOR INDIVIDUAL USE ONLY. @ COPYRIGHT 2020. THE STRAWHECKER GROUP. ALL RIGHTS RESERVED.

Example Edition

ANALYTICS + CONSULTINGThe Strawhecker Group (TSG) is a fast-growing analytics and consulting

firm. The company serves the entire payments ecosystem, from fintech

startups to Fortune 500 companies. The firm provides its clients with

advisory services, research and analytics to help them plan and execute

their strategic initiatives. Based in Omaha, a recognized payments industry

hub, TSG is an established leader in this high-growth, ever-evolving space.

1,000+Clients advised,

including many in the Fortune 500

40+Of the top 50 merchant acquirers served, including 9 of the top 10

23+ YearsAverage

Associateexperience in the

payments industry

3.7+ MillionCard-accepting merchants in TSG’s AIM analytics platform, driving millions of dollars in ROI for its users

250+Completed payments company valuations; as well as ~30 buy/sell/investment advisements

Example Edition