august 2020 insurtech –digital transformation becomes “the

© Copyright Marlin & Associates Holding LLC 2020

InsurTech – Digital Transformation Becomes “The Norm”

Dear Clients and Friends,

Marlin & Associates (M&A) is pleased to share our latest market update on the Insurance Technology (InsurTech) sector.

As we all continue to navigate through the ongoing COVID-19 pandemic, the need to adopt digital transformation technologies by the insurance industry has

become a ‘must have’ from ‘nice to have’ to both meet customer expectations as well as stay competitive in an evolving marketplace.

The investors and acquirers have caught on and the markets’ appetite for InsurTechs have shown significant resilience in the face of the unknown. In the

second quarter of 2020, capital raising volume was $1.6bn, nearly double the levels achieved in the first quarter, and was more than the amount of capital

raised in the second quarter of 2019.

This trend appears to continue into the current quarter with IPOs of several InsurTechs and increasing m&a activity. The IPO of digital-first InsurTech

Lemonade raised $319m, recent IPO of P&C software provider Duck Creek raised $300m, and health insurance focused distribution platform, GoHealth,

raised more than $900m in its IPO.

As you will see in the report, the momentum towards use of technology has inevitably led to m&a transactions in the field. We expect this momentum to

continue. On the m&a front, several notable deals have been announced over the last few months. Thoma Bravo improved its initial offer for Majesco – core

software provider that competes with Duck Creek – to $729m. Recently, Fineos (an Australian listed company) announced the acquisition of Limelight Health

(US based company) for $75m. We expect many such cross-border deals to be completed in the coming months.

While the length and consequences of the pandemic are impossible to predict, there is definitely light at the end of the tunnel. As you also will see in this

report, market values for publicly traded firms have continued to remain robust and both financing and M&A activity continues to gain steam though for select

assets.

Please feel free to reach out to me ([email protected]) with any questions or to discuss this in further detail. We are keen to hear from you and happy

to share what we are witnessing in the markets and how that could relate to your company.

Marlin & Associates is one of the most active investment banking and strategic advisory firms, providing trusted counsel to middle-market companies

worldwide that offer enterprise and vertical application software, services, data and analytics – including firms across FinTech ecosystem (InsurTech,

BankTech, Payments, WealthTech, LegalTech, GRC), Digital Tech, Business Intelligence, and Market Intelligence. Over the course of 18+ years we have

advised more than 200 companies in 27 countries. Over the past 18 months we have advised on 18 successful m&a transactions.

Anup Agarwal | Senior Managing Director | Marlin & Associates

570 Lexington Ave | 48th Floor | New York, NY 10022

o: +1 (212) 257-6043 | m: + 1 (917) 256-9880

[email protected] | Linkedin | www.marlinllc.com

August 2020

mailto:[email protected]

https://www.linkedin.com/in/anupagarwal02/

http://www.marlinllc.com/


InsurTech – Market Update

Summer 2020

© 2020 Marlin & Associates All Rights Reserved – Proprietary & Confidential

Marlin & Associates Securities LLC, a wholly owned subsidiary of Marlin & Associates Holding LLC, is a broker-dealer

registered with the Securities and Exchange Commission and is a FINRA/SIPC member firm (www.finra.org). Investment

banking and/or securities are offered through Marlin & Associates Securities LLC.


3

Digital Transformation of the Insurance Industry Gains Momentum

Digital

Transformation

Accelerates

Significantly

Numerous Players

Focused on Helping

Insurers Make

Better Use of Data

Cyber Insurance

Focused InsurTechs

in Demand

InsurTechs Serving

the Agent / Broker

Channel Are Here to

Stay

Trend Toward

Investing More in

Commercial and

Life Insurance

Markets


4

Expect Continued Investment in Digital Technology Solutions

Sources: Pitchbook; Public News

1) Willis Towers Watson, Quarterly InsurTech Briefing Q1 2020.

Illustrative Companies

Hippo is a digital-first provider of

home insurance options

Recent Transactions

Date Target Acquirer/Investor(s) Description

8/13/20Vertafore provides a cloud-based software featuring agency management, compliance, workflow, and

data solutions that simplify and automate the property and casualty (“P&C”) insurance lifecycle.

7/23/20 (IPO) Duck Creek is a SaaS provider of core systems for the property and casualty insurance industry.

7/20/20Majesco provides technology, expertise, and leadership that helps insurers modernize, innovate and

connect to build the future of their business – and the future of insurance – at speed and scale.

7/2/20 (IPO) Lemonade is a full-stack insurer that offers homeowners and renters insurance.

Digital

Transformation

Accelerates

Significantly

▪ The ongoing pandemic has exposed

technology gaps with insurers, MGAs, and

agents/brokers’ legacy technology processes,

leaving them unable to effectively underwrite

and sell a policy, process a claim, and to

make use of the plethora of untapped data

and remain competitive

▪ There are an estimated 760 InsurTechs

globally(1) that have raised equity funding and

offer solutions for all functional areas in the

insurance industry

▪ Improved customer / channel experience a

top reason for insurers to digitize their

operations

Insurity provides policy

administration, claims, billing,

and analytics software solutions

for P&C insurers

PolicyGenius is an online

insurance comparison platform

primarily for rent and home

Guidewire provides web-based

core software solutions to the

P&C industry.


5

Data & Analytics Solutions Continue to Play an Important Part Across All Channels

of the Value Chain



Convr provides an AI-based

decision automation platform for

commercial P&C insurers.

Recent Transactions

Numerous Players

Focused on Helping

Insurers Make

Better Use of Data

▪ Market need for data and analytics solutions to

help an insurer better price a policy, detect fraud,

and eliminate the manual steps taken today to

issue a policy or process a claim

▪ Increased adoption of AI and ML technologies

have allowed insurers to reduce lose ratios by

better predicting blind spots and analyzing more

complicated claims

▪ Behavior-based data models gathered through

IoT, wearables, or sensors to improve

underwriting decisions are being used to further

personalize the solutions

Insurdata captures, enhances,

scores, and transfers peril-

specific exposure and risk data.

Root provides a usage-based

auto insurance platform for

individuals.

Quantemplate offers software for

managing insurance data,

analyzing risk and ensure

compliance.


7/7/20 Concirrus provides insurance underwriting tools leveraging IoT.

6/10/20 Planck provides AI-led solutions for a better underwriting process.

3/4/20Tractable provides a platform designed to automate image recognition and text understanding for auto

accidents.

1/8/20 SpatialKey is a data enrichment and geospatial analytics solution provider.



5/20/20 Coalition provides insurance coverage and risk management tools managing and mitigating cyber risk.

3/9/20 CyberCube delivers the world’s leading cyber risk analytics for the insurance industry.

2/20/20At-Bay builds active risk management products and services that keep clients safe and enable brokers

to provide more insightful coverage analysis and eliminate the need for manual processing.

1/3/20Corvus offers Smart Commercial Insurance policies paired with easy-to-use tools to reduce risk,

prevent claims, and improve the commercial insurance experience.

6

Increasingly Connected Digital Economy Drives Demand for Cyber Insurance



Recent Transactions

Cyber Insurance

Focused InsurTechs

in Demand

▪ As remote working becomes more of a norm,

employees as well as consumers are at increased

risk for cyber attacks and companies are more at

risk for data breaches

▪ Historically companies have been reluctant to

purchase cyber insurance, but given the number

of publicized cyber attacks (Equifax, Canva,

Zynga), cyber is one of the top business risks for

companies of all sizes and industries today

Companies cannot just invest in cybersecurity

technologies to prevent attacks but also

purchase cyber insurance policies to protect

themselves in case of an attack

▪ A significant amount of capital has been raised for

tech-enabled intermediaries providing cyber

coverage

Arceo makes companies cyber

resilient by combining smarter

insurance products with dynamic

security solutions

Zeguro provides risk

management to organizations

through its cybersecurity and

cyber insurance solutions

Envelop Risk is a global

specialty cyber and emerging

risk insurance analytics and

underwriting firm

Evolve MGA underwrites and

distributes cyber insurance policy

in the marketplace to retail

insurance agencies.


7

InsurTechs Focused on Digitizing the Agent / Broker Workflows Are Experiencing

Faster Product Adoption



ClarionDoor is a SaaS platform

that provides rating and quoting

solutions for brokers/agents

Recent Transactions

InsurTechs Serving

the Agent / Broker

Channel Are Here to

Stay

▪ While the direct-to-consumer (DTC) model

adopted by insurers continues its push forward,

InsurTechs offering digital tech solutions to

automate processes like application intake,

quote delivery, rate adjustments, sales tracking,

renewals and other workflows for agents/brokers

are here to stay for the foreseeable future

▪ Strong use case for a collaborative environment

rather than a disruptive one

The human interaction remains a vital

component for the binding process

▪ Assurance IQ (Acquired by Prudential for $3.4bn

in 2019) combines both a DTC channel with live

agents for consultation and sales completion

+Simple is an operator of an

insurance brokerage platform

designed to offer tailor-made and

competitive insurance services

Bindable is a CRM solution built

to support brokers in offering a

full retail e-commerce

experience

Riskgenius applies AI and NLP

to insurance policy review,

helping brokers create more

efficient underwriting workflows


7/7/20 Virtual MGA is a provider of a cloud-based binding authority underwriting and distribution solution.

1/2/20xagent delivers on the promise of a truly independent single-entry multi-quote exchange for standard

and surplus lines business insurance.

12/5/19Indio is an engagement platform for independent agents that eliminates redundancies in data gathering

and provides their insureds a superior customer experience.

10/10/19Assurance IQ is an insurance comparison platform that lets users to compare insurance quotes from

multiple carriers.


8

Digital Transformation Is Expanding to Historically Under-Invested Commercial

and Life Insurance Markets



ClaimVantage offers industry-

leading life, health, and absence

management software solutions

Recent Transactions

Trend Toward

Investing More in

Commercial and

Life Insurance

Markets

▪ Since the inception of the moniker “InsurTech”

back in 2010, most investment in the space has

been made in the P&C space in personal lines of

insurance

▪ Today though, there is an increased focus on

other segments of insurance including commercial

and life insurance markets

▪ Cyber focused InsurTechs help to insure

businesses against cyberattacks and Data &

Analytics firms that apply AI/ML to improve the

underwriting decisions on a commercial insurance

policy for a business continue to raise capital

▪ Life insurance continue to remain ripe for

digitization as more innovative technology is

geared to cut down the complexity of blind spots

and infrequent nature of claims

Proformex is a policy

management platform offering

data aggregation, analytics, and

portfolio monitoring services

Origami Risk is a leading

provider of integrated SaaS

solutions for workers

compensation market

Sureify helps carriers acquire,

service, and engage their

customers with its enterprise

focused life insurance platform


8/10/20Limelight Health is an US-based provider of quoting, rating, and underwriting solutions for group and

voluntary employee benefits.

5/28/20Pie Insurance provides workers' compensation insurance directly to small businesses and also partners

with local, regional, and national insurance agencies to provide coverage to their clients.

4/22/20LeapLife is a digital life insurance agency that utilizes data science to enable consumers to apply for

instant-decision life insurance policies with real-time quotes.

4/23/20Bestow delivers new consumer life insurance products that are affordable and available instantly with

no medical exam.


9

InsurTech Landscape Is Still Fragmented with Companies Primarily Competing

Across Three Segments of the Value Chain

Note: This is only a select list of companies. Some InsurTechs might serve multiple functions across the value chains.

Policy, Claims and Payment Automation

Funding: $60mm Funding: $4mm

Funding: $43mm

Funding: $285mmFunding: $96mm

Funding: $37mm(Acquired by Insurity)

Funding: $54mm

Funding: $6mm

NASDAQ:VRSK

Funding: $628mm

Funding: $28mm

Funding: $64mm

Funding: $151mm

Funding: $26mm

(Acquired by Seeman

Holtz P&C) (Acquired by Motive Partners)


Funding: $1bn

(Acquired by Roper Tech)Funding: $114mm

(Acquired by Great Hill Partners)

NASDAQ:EVER

Funding: $386mm

Funding: $360mm

Funding: $2mm Funding: $36mm

(Acquired by CVC Capital)

ASX:FCL

(Acquired by Vista Equity)

NYSE:GWRE

(Acquired by GI Partners)

NASDAQ:EBIX

Funding: $69mm

Funding: $31mm

(Acquired by Apax Partners)NASDAQ:SPNS

Funding: $77mm NASDAQ:MJCO

NYSE: LMND

Funding: $40mm

NYSE:DXC

Funding: $46mm

Funding: Undisclosed

Funding: $0.25mm

Funding: $7mm

Funding: $18mm

Data & Analytics / IoT for Pricing, Underwriting, Marketing, Distribution

and Claims ProcessingDistribution / Marketing Solutions

Funding: $6mm



Funding: $10mm


Funding: $113mm

Funding: $3mm

Funding: $25mm

Funding: $26mm

Funding: $56mm

Funding: $41mm

Funding: $55mm

Funding: $37mm

Funding: $44mm

Funding: $17mm

Funding: $68mm

Funding: $140mm

Funding: $99mm

Funding: $82mm

NYSE:SLQT


Funding: $21mm

Funding: $129mm

Unfunded

Unfunded

Unfunded

Unfunded


Funding: $20mm

Funding: $7mm

Funding: $50mm

Funding: $13mm

Funding: $12mm


InsurTech Valuations Remain Robust and Deal Activity

Continues to Pick Up though Investors’ Focus Primarily on

Selective Companies

10


$247

$1,825

$454 $412

$868

$1,140

$423$293 $370

$893

$343

$3,014

$1,417

$2,919

$1,326$1,133

$1,594 $1,541$1,359

$1,801

$899

$1,684

57 54 53

68

90

7588 90

163

108 106

121

178

138 139132

138148

127116 115

90

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Q12015

Q2 Q3 Q4 Q12016

Q2 Q3 Q4 Q12017

Q2 Q3 Q4 Q12018

Q2 Q3 Q4 Q12019

Q2 Q3 Q4 Q12020

Q2

Total Capital Invested (in $mm)

Deal Count

11

Financing Volume Nearly Doubled in Q2 2020 vs. Q1 2020…However the Number

of Transactions Decreased

Source: PitchBook

Selected Transactions

$153mm

$400mm

$33mm

$50mm

2016

$650mm

$200mm

$500mm

$400mm

2018

$225mm

$319mm

$300mm

$913mm

2020

$80mm

$931mm

$513mm

$81mm

2015

$97mm

$120mm

$63mm

$62mm

2017

$635mm

$500mm

$360mm

$300mm

2019

57

Source: https://my.pitchbook.com/?pcc=348656-23

54 53

68

90

75

88 90

163

108 106

121

178

138 139132 138

148

127116 115

90


12

Financing Activity Continues to Pick Up after Significant Drop in March and

April…With Several IPOs and Capital Raises Getting Completed in July (1 / 3)

Date Lead Investor(s) Target Target Location Target Company DescriptionFunding Amount

($mm)

7/23/20 (IPO) Boston, MA P&C insurance software and services provider $300

7/22/20 Iselin, NJ AI-based claims management platform $6

7/22/20 Palo Alto, CA Home insurance application automation provider $150

7/15/20 (IPO) Chicago, IL Healthcare insurance solutions for insurers, agents, and consumers $913

7/7/20 London, UK Insurance underwriting tools leveraging IoT $6

7/7/20 Gurugram, India Online insurance comparison platform $50

7/2/20 (IPO) New York, NY Online home and renters’ insurance provider $319

6/26/20 New York, NY Internet-first health insurance provider $225

6/10/20 Boston, MA P&C insurance software and services provider $230

6/10/20 New York, NY AI-based software for insurance companies $16

6/5/20 Austin, TX Online insurance comparison platform $44

5/28/20 Washington, DC Workers' compensation insurance for SMBs $127

Sources: PitchBook and Tracxn.


13




($mm)

5/20/20 San Francisco, CA Insurance coverage and risk management tools for managing and mitigating cyber risk $90

5/7/20 Chicago, IL Internet first home insurance platform $47

5/4/20 London, UK Digital pet insurance provider $98

4/28/20 Jakarta, Indonesia Digital P&C insurance provider $14

4/23/20 Dallas, TX Digital life insurance platform $50

4/20/20 Paris, France Operates as an internet first health insurer $54

3/10/20 London, UK Software for underwriting and managing insurance products online $20

3/4/20 Santa Monica, CA Insurance and claim management software for clinics and hospitals $9

3/4/20 Cambridge, MA Car insurance comparison platform $23

3/4/20 Eldersburg, MD Customized healthcare with rewards for reaching personal health goals $16

3/4/20 London, UK AI-led visual analysis solutions $25

3/3/20 San Francisco, CA Digital life insurance products $38



14




($mm)

2/26/20 New York , NY SaaS platform for insurance sales management $51

2/20/20 Mountain View, CA Enterprises cyber insurance $34

1/30/20 New York , NY Online insurance shopping platform primarily for life and renter’s insurance $100

1/29/20 San Francisco, CA Comparison platform for personal insurance products $27

1/28/20 New York, NY Human resource management solution $50

1/23/20 San Francisco, CAData analytics platform focused on claims, regulatory compliance and customer

acquisition$15

1/21/20 Bangalore, India App-based insurance platform for individuals $84

1/13/20 Brooklyn, NY Platform to enhance customer experience $23



15

M&A Activity Has Picked Up Over the Last Few Months (1 / 2)

Date Acquirer(s) Target Target Location Comments Enterprise Value

8/13/20 Denver, CO

• Vertafore provides software solutions for insurance agencies and carriers

• The acquisition represents Roper's strategy of buying up software companies in

niche markets with durable, long-term cash flow compounding ability$5bn

8/10/20 San Francisco, CA

• Limelight Health provides quote engine solution for health insurance professionals

• The acquisition will enable Fineos to deliver more product options as they

accelerate digital transformations and reduce reliance on legacy core systems$75mm

7/20/20 Morristown, NJ

• Majesco is a core software provider for the insurance industry

• The transaction will allow Majesco to more effectively focus on long-term

investment and growth objectives$729mm

7/13/20 Tampa, FL

• Benefytt Technologies provides a software suite for health insurance industry

• PE firm Madison Dearborn Partners announced an all cash tender offer of $31 /

share on 7/13/20 and expects to close through a two-step merger process$627mm

7/7/20 Lakeway, TX

• Virtual MGA provides an in-house underwriting platform for insurance agencies

• The acquisition is a complement to Insurity’s cloud-based analytics and core

system solutionsn/a

6/22/20 Lakeland, FL

• Epic-Premier provides a software suite for the insurance industry

• Epic-Premier complements Insurity’s suite of digital system products, bringing

capabilities designed to support MGAs and market experience to its teamn/a

6/17/20 Schaumburg, IL

• Gateway provides auto insurance to the light commercial automobiles market

• This acquisition will enable Buckle to provide comprehensive auto insurance to the

commercial auto marketn/a

6/17/20 Dublin, Ireland

• Chill Insurance is an insurance comparison platform based in Ireland

• The acquisition of Chill Insurance widens Livingbridge’s reach in the personal lines

sector and expands its portfolio of complementary financial services productsn/a

6/3/20 Bedminster, NJ

• Spinnaker provides property and casualty insurance services to policyholders

• The acquisition will allow Hippo Insurance to expand the geographical reach of its

modern home insurance policies, which also include smart home monitoring kitsn/a

6/1/20 Aventura, FL

• AgileRates.com is a performance marketing company in the insurance industry

• The acquisition will allow Excel Impact to expand its presence across all major

insurance verticals.n/a

5/19/20 Asheville, NC

• Equis provides a sales & marketing platform for insurance agents

• The transaction offers Equis increased resourcing in compliance, human

resources, social media and marketingn/a

Source: PitchBook and Tracxn.


16

M&A Activity Has Picked Up Over the Last Few Months (2 / 2)

Date Acquirer(s) Target Target Location Comments Enterprise Value

5/5/20 Prague, Czech Republic

• Klik is an aggregator of insurance products

• Klik will have the opportunity to grow further and provide increasing value to its

customers in partnership with Netrisk and under the leadership of TA Associatesn/a

4/22/20 San Francisco, CA• Leap is an online insurance distribution platform focused on life insurance

• The acquisition allows Even to immediately commence its insurance capabilitiesn/a

3/24/20 Oakland, CA

• Captricity provides a SaaS solution that converts info from paper to digital data

• The acquisition will complement SS&C's business process outsourcing (BPO)

services and AWD business process management solutionn/a

3/17/20 Singapore• PolicyPal is a mobile first insurance distribution platform

• The transaction will help AMTD expand in the Southeast Asian/a


• Vlocity is an omni-channel cloud software, delivering industry-specific experiences

• Vlocity’s feature set will enhance and complement Salesforce’s industry capabilities

and product knowledge, open up new industry capabilities on Salesforce platform$1.3bn

2/20/20 Folsom, CA• One Inc. is an insurance policy management software for carriers

• Great Hill’s investment allows One Inc. to accelerate its digital payments strategyn/a


• Allay is a cloud-based HRMS software for SMBs

• The acquisition of Allay will make quoting and modeling health plans easier and

more cost-effective for benefit consultantsn/a

2/6/20 Sonoma, CA

• RMS is a catastrophic risk modelling solutions provider

• George Hills provides an attentive level of service the big firms can’t provide after

the acquisition

n/a

2/4/20 Duluth, GA

• Agency Matrix is a cloud-based agency management software

• After the transaction, clients of ITC will benefit from the extensive features

available in the Agency Matrix agency management systemn/a

1/30/20 Philadelphia, PA

• InsPro Technologies is an insurance policy administration software for insurers

• The acquisition will strengthen and expand Majesco’s domain depth in voluntary,

group, voluntary benefits, and worksite markets$12mm

1/8/20 Golden, CO

• SpatialKey is an insurance platform for underwriting and risk analysis

• The acquisition of SpatialKey will enable Insurity to extend overall market

leadership as well as strengthen and expand its industry-leading data solutionsn/a

Source: PitchBook and Tracxn.


(40.0%)

(30.0%)

(20.0%)

(10.0%)

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

Policy, Claims and Payment Automation Data & Analytics / IoT Distribution / Marketing Solutions Nasdaq S&P 500

17

Comparable Companies Within InsurTech Ecosystem Are Trading Mostly in Line

with Broader Tech Indices

Source: PitchBook, as of market close on August 21st, 2020; each company's stock performance is equally weighted in the corresponding index, except for S&P 500 and NASDAQ.

Policy, Claims and Payment Automation: NYSE:GWRE; NYSE:OCFT; NASDAQ:SPNS; NASDAQ:EBIX; ASX:FCL; NASDAQ:DCT

Data & Analytics / IoT: LSE:REL; LSE:EXPN; NYSE:INFO; NASDAQ:VRSK; NYSE:EFX; NYSE:TRU; NYSE:FICO; NYSE:CLGX; XTRA:DFV; AIM:QTX

Distribution / Marketing Solutions: NASDAQ:EHTH; LSE:MONY; NASDAQ:EVER; LSE:GOCO; NASDAQ:HUIZ; NYSE:LMND; NYSE:SLQT; ZhongAn; NASDAQ:EVER

Nasdaq 24.4%

Data & Analytics /

IoT 19.4%

Policy, Claims and

Payment Automation

55.1%

S&P 500 4.3%

Distribution /

Marketing Solutions

5.6%


18

Public Market Valuations Remain Robust for InsurTech Comparable Companies

Source: Company Public Filings and PitchBook, as of market close on August 21st, 2020

*Duck Creek’s 2020E valuation multiples are based on TTM Revenue and EBITDA.

(USD millions) Market Enterprise EV / Revenue EV / EBITDA Revenue Growth EBITDA Margin

Company Country Cap Value CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E CY2020E CY2021E

Policy, Claims and Payment Automation

Guidewire USA $9,149 8,551 11.7x 10.3x n.m. n.m. 4% 14% 11% 18%

OneConnect China 7,966 7,930 16.2x 10.5x n.m. n.m. 45% 54% n.m. n.m.

Duck Creek USA 5,358 5,365 26.7x n.a. n.m. n.a. n.a. n.a. 5% n.a.

Sapiens Israel 1,707 1,751 4.6x 4.2x 25.8x 23.0x 17% 10% 18% 18%

Fineos Ireland 1,126 1,101 9.2x 7.7x n.m. 40.4x n.a. 20% n.m. 19%

Ebix USA 766 1,436 2.9x 2.3x 8.9x 6.9x (14%) 23% 32% 34%

Median 10.5x 7.7x 17.3x 23.0x 10.3% 19.7% 14.4% 18.7%

Data & Analytics / IoT

Relx UK $44,126 $53,543 5.4x 5.0x 15.5x 13.7x (1%) 7% 35% 37%

Experian Ireland 33,485 37,628 7.3x 7.0x 21.1x 20.0x n.a. 5% 35% 35%

IHS Markit UK 32,388 37,970 8.9x 8.2x 20.7x 18.8x (3%) 8% 43% 44%

Verisk USA 30,147 33,265 12.0x 11.4x 24.7x 23.1x 6% 6% 49% 49%

Equifax USA 19,352 22,420 5.9x 5.7x 17.1x 16.4x 9% 3% 34% 35%

TransUnion USA 15,776 19,088 7.1x 6.7x 18.7x 16.8x 1% 7% 38% 40%

FICO USA 12,226 13,102 10.6x 10.0x 31.2x 29.2x 3% 6% 34% 34%

Pegasystems USA 9,639 9,690 9.1x 7.7x n.m. n.m. 17% 18% 2% 7%

CoreLogic USA 5,299 6,825 3.6x 3.6x 11.5x 11.6x 6% 2% 32% 31%

Deutsche Familienversicherung Germany 397 447 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

Quartix UK 220 209 6.2x 6.4x 22.8x 26.5x 3% (3%) 27% 24%

Median 7.2x 6.8x 20.7x 18.8x 3.4% 6.1% 34.5% 34.7%

Distribution / Marketing Solutions

ZhongAn Online P&C Insurance China $8,154 $8,601 3.4x 2.5x n.m. n.m. 15% 35% 2% 4%

GoHealth USA 5,008 5,926 6.8x 5.0x 21.3x 15.1x n.a. 37% 32% 33%

Lemonade USA 3,406 3,628 18.4x 10.5x n.m. n.m. n.m. 75% n.m. n.m.

SelectQuote USA 3,201 3,478 5.5x 3.9x 21.7x 15.5x 57% 40% 25% 25%

Moneysupermarket UK 2,118 2,109 4.5x 4.1x 14.6x 12.1x (6%) 10% 31% 34%

eHealth USA 1,766 1,616 2.5x 1.9x 11.0x 8.1x 30% 28% 22% 24%

EverQuote USA 1,018 964 2.9x 2.4x 57.1x 37.9x 34% 22% 5% 6%

Huize China 468 407 n.a. n.a. n.a. n.a. n.a. n.a. n.a. n.a.

GoCompare UK 624 716 3.3x 2.9x 16.2x 14.0x 12% 12% 20% 21%

Median 4.0x 3.4x 18.8x 14.6x 22.9% 31.7% 22.4% 23.6%


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Leading Advisor to FinTech, Digital Tech, Data and Analytics Companies and

Investors Worldwide

▪ Domain expert – advised on 200+ relevant transactions over 18 years. Marlin & Associates (“M&A”) is the domain expert in providing independent and

unbiased strategic counsel and advisory services to middle-market FinTech, Digital Tech, Data and Analytics companies

▪ Local yet global – successfully advised buyers and sellers from 27 countries to date

▪ Well recognized – “Middle-Market IB of the Year,” “TMT Advisory Firm of the Year,” and “Cross-Border Boutique IB of the Year,” and more than 20

“Deals-of-the-Year”

Full Range of Transaction Services Industry Recognition and Awards Sector Coverage

Sell-side &

Buy-side M&A

Joint Ventures

& Partnerships

Fa

irn

ess

Op

inio

ns E

qu

ity &

Deb

t Cap

ital

Rais

e

RegTech

Digital Tech

InsurTech

Data & Analytics

Capital Markets Tech

Digital Lending

Wealth Tech

Payments

Bank Tech

▪ TMT Advisory Firm of the Year

▪ Middle-Market IB of the Year

▪ Cross-Border Boutique IB of the Year

▪ Advisory Firm of the Year

▪ FinTech Deal of the Year

▪ Corporate M&A Deal of the Year

▪ Middle-Market IB of the Year

▪ Middle Market Tech Deal of the Year

Business Intelligence


FOCUS

TEAM

EXPERTISE

GLOBAL

PARTNERS

TRACK

RECORD

21

We Have an “Unfair” Competitive Advantage

▪ Unrelenting focus on the financial technology sector with deep expertise in InsurTech, digital tech and data and analytics

▪ Deep understanding of industry structure and drivers of value

▪ Extensive contacts at multiple levels among industry participants and financial investor firms

▪ Diverse team based across New York, Washington DC, and Toronto

▪ Execution experience from some of the most highly regarded firms in the industry

▪ Real world and relevant operating experience

▪ 18+ years of transaction success

▪ Our partners have worked at leading firms in FinTech

▪ The industry we serve is not defined geographically, nor are we

▪ Half of our transactions are cross-border

▪ 1/3rd of our clients are international

▪ We are long-term thinkers and believe in partnering with our clients through their entire evolution

▪ We are domain experts and offer independent and unbiased strategic counsel and advisory services to our clients

▪ We stay with you until the end

▪ 200+ closed transactions

▪ Numerous awards and accolades

▪ Recognized as an industry leader and expert by our peers and clients


“Bringing on the Marlin & Associates team

remains one of our great decisions. The

dedication of the team was on full display as we

approached this latest chapter for ClearStructure.

The guidance, creativity and true value-add that

they brought to the table helped ClearStructure

achieve goals we didn’t think were possible.“

-Scott Turley, CEO of ClearStructure

22

We Deliver Exceptional Results

Advisory Firm of the Year (US)

Gamechanger of the Year (US), Ken Marlin

Middle-Market Investment Bank of the Year (US)

Capital Raising Advisory Firm of the Year

Boutique Investment Banking Firm of the Year

Gamechanger of the Year (US), Ken Marlin

Middle-Market Investment Bank of the Year

TMT Advisory Firm of the Year (US)

Deal of the Year (Parthenon / BillingTree)


Small Tech Fund Raising of the Year for CRM

Professional Services (B2B) Deal of the Year

(2017)


Cross-Border Deal of the Year (2016)

“The team at Marlin & Associates helped us get

the best value for our company. They know the

players and values of this industry at a level few

can match. They guided us and brought multiple

highly qualified buyers into the process -

including FNZ, with whom we look forward to

joining. We thank the Marlin & Associates team

and look forward to working with them again in

the future.”

-Rob DeDominicis, CEO of GBST

“We have been delighted with the service

provided to us by Ken Marlin and his team. They

have been diligent and thorough, and also a

pleasure to work with. The Marlin team’s deep

knowledge of our industry makes them the

number one go-to firm when you want to sell your

business. They have seen and managed more or

less every possible situation and know the play

book on how to deal with them. The process was

meticulously planned and executed.”

-Justin Wheatley, CEO of StatPro


23

Clients Choose Us for Their Most Important Strategic Decisions (1/2)

New York, NY

has received a $61mm investment from

Boston, MA

Marlin & Associates acted as exclusive strategic and financial

advisor to SERMO, Inc.

has been acquired by

New York, NY


advisor to SALIDO, Inc.

Troy, MI

Marlin & Associates acted as exclusive strategic and financial advisor to TradingScreen Inc.

London, UK

has sold a minority equity interest in its subsidiary

Singapore

London, UK

to

London, UKhas sold Preqin Solutions to

Boston, MA

A portfolio company of


advisor to Preqin, Ltd.

Shelton, CT

has acquired

Kansas City, MO


advisor to TABS Analytics

Wilton, CT

has received a majority equity investment from


advisor to Private Client Resources, LLC.

New York, NY

Reston, VA


Marlin & Associates acted as exclusive strategic and financial advisor to

Zoomdata, Inc.

Mclean, VA


Chicago, IL



advisor to InRule Technology, Inc.

Los Angeles, CA

Alpharetta, GAhas been acquired by


advisor to Points2Shop, LLC

New York, NYA portfolio company of

has agreed to be acquired by

London, UK

Marlin & Associates acted as strategic and financial advisor to

StatPro Group plc

Pittsburgh, PA



Brisbane, Australia

Marlin & Associates acted as financial advisor to

GBST Holdings Limited

Edinburgh, UK

Orlando, FL

has received growth capital from

Marlin & Associates acted as exclusive strategic and financial advisor to

Kore.ai

Vancouver, BC


Danbury, CT


advisor to ClearStructure Financial Technology, LLC.

Lake Success, NY

Denver, CO


advisor to NinjaTrader Group, LLC

New York, NY


New York, NY



advisor to Hanweck Associates, LLC

Chicago, IL

Pleasanton, CA

a division of Greenwich Associates was acquired by


advisor to Greenwich Associates, LLC

Livonia, MI


Stamford, CT



advisor to Greenwich Associates, LLC

Mumbai, India

Barcelona, Spain



advisor to Strands, Inc.

Bologna, Italy


24

Clients Choose Us for Their Most Important Strategic Decisions (2/2)


Chicago, IL

Marlin & Associates acted as exclusive strategic and financial advisor to OptionsCity Software

New York, NY

received an investment from

Port Talbot, United Kingdom

London, United Kingdom


advisor to Vizolution

has received an equity investment from

Darien, CT

Marlin & Associates acted as exclusive strategic and financial advisor to Investment Metrics

Atlanta, GA

Boston, MA

Toronto, Canada

Atlanta, GA


advisor to TMX Group

has sold the Atrium wireless and extranet infrastructure businesses to

Affiliate of

Addison, TX


advisor to Think Finance

Received a $250mm credit facility from affiliate of

White Plains, NY

London, United Kingdom

received an investment from


advisor to OpenGamma


Hamilton, Bermuda

Geneva, Switzerland

Marlin & Associates acted as exclusive strategic and financial advisor to QuoVadis and ABRY


Salt Lake City, UT

Chicago, IL

Marlin & Associates acted as exclusive strategic and financial advisor to iTransact Group, LLC


San Mateo, CA


advisor to Xignite.

received a strategicinvestment from

Tokyo, Japan

New York City, NY

Lake Success, NY

Marlin & Associates acted as exclusive strategic and financial advisor to M&O Systems, Inc.


a portfolio company of

New York, NY


advisor to Advise Technologies, LLC


New York, NY

Brentwood, TN

a portfolio company of

Marlin & Associates acted as strategic and financial advisor to Agilum Healthcare Intelligence.


Toronto, Canada


advisor to Tier1CRM


Boston, MA & San Francisco, CA


advisor to MSCI Inc.

New York, NY

has sold Financial Engineering Associates, Inc. to


Dallas, TX

Marlin & Associates acted as strategic and financial advisor to

Empow

Boston, MA

received a series B investment led by

Boston, MA

New York, NY

has acquired

New York, NY

Marlin & Associates acted as exclusive strategic and financial advisor to Aquiline Holdings LLC

San Francisco, CA

has received a $30 million equity investment from

New York, NY


advisor to Rapid Ratings

Charlotte, NC


advisor to Zenmonics


Jacksonville, FL


25

Our Team Brings Relevant Transaction and Operating Experience

Woolley Capital Partners

Ken Marlin

Founder & Managing Member

Anup Agarwal

Managing Director

Aalap Merchant

Managing Director

Billy Adams

Jordan Wittbrot

Sam Wilcox

Luke HsiehNeil Chadda

Michael Maxworthy

Managing Director

Tom Selby

Managing Director

New York City | Washington, DC |

Toronto, Canada

Chris Fieschko

Peter Manuselis

Al Sisca


26

Marlin & Associates

For more than 18 years, Marlin & Associates has been the domain expert - providing

independent and unbiased professional investment banking and strategic counsel to middle-

market enterprise and vertical application software, services, data and analytics – including

firms across the FinTech ecosystem (InsurTech, Bank Tech, Payments, Wealth Tech, Capital

Markets Tech, Digital Lending, RegTech), Digital Tech, Legal Tech, GRC, Business

Intelligence, and Market Intelligence.

Headquartered in New York City, with offices in Washington, D.C. and Toronto, the Marlin &

Associates team of professionals has advised on more than 200 transactions in 27

countries. More than 20 transactions on which Marlin & Associates has advised have been

recognized as “Deal-of-the-Year”. The firm has won numerous awards including the “Middle-

Market Investment Bank of the Year,” “Middle-Market Financing Agent of the Year – Equity,”

and “TMT Advisory Bank of the Year.”

Marlin & Associates Securities LLC, a wholly-owned subsidiary of Marlin & Associates

Holding LLC, is a broker-dealer registered with the Securities and Exchange Commission

and is a FINRA/SIPC member firm (www.finra.org). Investment banking and/or securities

are offered through Marlin & Associates Securities LLC.

New York City | Washington, D.C. | Toronto

august 2020 insurtech –digital transformation becomes “the

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