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FINTECH SECTOR REPORT March 2019

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Page 1: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

FINTECHSECTOR REPORT

March 2019

Page 2: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

2

GCA Altium acted as exclusive M&A and debt adviser to Bowmark Capital on its take private of Tax Systems plc.

TRANSACTION DETAILS

Closed

March 2019

SECTORS

Financial Technology

Software

DEAL TYPE

M&A & Debt Advisory

Transaction Summary

▪ On March 25, 2019, Bowmark Capital announced that it had completed the acquisition of Tax Systems plc (“Tax Systems” or the “Company”)

– The transaction values Tax Systems at £114MM

▪ Headquartered in the United Kingdom, Tax Systems is a leading provider of tax software and services for corporations in the UK and Ireland

▪ Tax Systems listed on the AIM market via a reverse takeover in July 2016

▪ Bowmark Capital is a private equity firm with extensive experience investing in growth companies. Founded in 1997, Bowmark manages and advises funds totaling £1.5Bn

▪ GCA acted as exclusive financial advisor to Bowmark in connection with the transaction

Strategic Rationale

▪ Tax Systems’ portfolio of solutions automates the end-to-end tax compliance process, enabling the Company’s clients to increase the accuracy of their tax reporting, reduce the risk of non-compliance and free up the tax function to focus on value-adding tasks

▪ Clients include a large proportion of the FTSE 250 and 23 out of the top 25 accounting firms

▪ Bowmark is investing alongside the current management team to support the company’s continued expansion

▪ Bowmark’s investment will enable the Company to accelerate the development of new products and services

CASE STUDY: GCA ADVISES BOWMARK CAPITAL ON THE PUBLIC -TO-PRIVATETAKEOVER OF TAX SYSTEMS

Page 3: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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Real Estate & Mortgage Technology

Payments / Billing / Money Transfer

Investment & Wealth Technology

Banking Technology

Real Estate & Mortgage Technology

Blockchain / Crypto

Insurance Technology

BUSINESS MODEL COVERAGE

GCA has created an interdisciplinary team of senior bankers across FinTech, Software, Private Capital and M&A to serve virtually all

sub-sectors and business models across the FinTech ecosystem

BROAD AND DEEP FINTECH PRACTICE

KEY GCA STATS SECTOR COVERAGESELECTED BLUE CHIP STRATEGIC

& FINANCIAL CONTACTS

Regulatory Technology

Trading & Capital Markets Technology

SaaS and

Enterprise

Software

Information

Services /

Data &

Analytics

Tech-

Enabled

Services

Transaction

Processing

400+ Bankers globally

21

375+Transactions in the last

three years

Strategic Acquirers

Private Equity / VC

Offices globally

3Continents – America,

Asia and Europe

33%+Cross-border transactions

Insurance Technology

Online / Alternative Lending

Page 4: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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Strong sector and product expertise across FinTech and related sub-sectors

GCA FINTECH TEAM

Rob FreimanDirector

FinTech - PaymentsPhone: (212) 999 - 7075Mobile: (973) 229 - 0436 [email protected]

Kegan GreeneDirector

FinTech - InsurTechPhone: (415) 318 - 3686Mobile: (917) 579 - 4838 [email protected]

Paul DiNardoManaging DirectorHead of SoftwarePhone: (212) 999 - 7097Mobile: (650) 483 - [email protected]

Chris GoughManaging Director

Software / FinTech M&APhone: (415) 318 - 3658Mobile: (415) 385 - [email protected]

Selected Recent FinTech Experience

Sale of

Financial Advisor

Real Estate Tech

Financial Advisor

Growth Investment

Banking & Lending Tech

We Advised Skyslope

Majority sale to

Payments

We Advised Radius

Financing fromAcquired by

We Advised WorkMarket

Financial SaaS

To

We Advised RGI Shareholders

Insurance Technology

Tender Offer for

Asahi Fire & MarineInsurance Co.

We Advised Asahi

Insurance Technology

We Advised BlackFin

Sold

Insurance Technology

To

Payments

Acquired by

Fairness Opinion to Clearent

Payments

We Advised CHX

Acquired by

Liquidity Venues Financial SaaS

Acquired by

We Advised FieldEdgeWe Advised Principal

Acquired

Investment Technology

We Advised Risk International

Sold majority stake to

Insurance Technology

We Advised Bexio

Acquired by

Insurance Technology

We Advised Liqid’s shareholder HQ Trust

Received an investment from

Investment Technology

We Advised QuoteWizard

Acquired by

Insurance Technology

Sold stake in

We Advised Silver Investment Partners

Acquired

Payments

Preferred Financingfrom

We advised GOQii

Insurance Technology

Acquired by

We advised Attom

Real Estate Tech

Preferred Financing

We advised Loanboox

Banking & Lending Tech

We advised Bowmark Capital

Financial SaaS

Acquired

To

Page 5: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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Select March Financing Transactions Select March M&A Transactions

Date Company Selected Investors Amount Date Target Buyer Value

3/29/19 $250 3/28/19 $146

3/25/19 $100 3/22/19 $1,300

3/20/19 $300 3/18/19 $43,000

3/14/19 Undisclosed $250 3/12/19 NA

3/5/19 $125 3/8/19 NA

3/5/19 $200 3/5/19 $1,000

Quarterly Financing Activity ($Bn) Quarterly M&A Activity ($Bn)

Average Deal Size ($MM) Average Deal Size ($MM)

$164 Bn | 769 Deals

LTM M&A Volume

$49 Bn | 1,502 Deals

LTM Financing Volume

$9

$5 $7

$8

$19

$10 $10 $10

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

$13$32

$17

$46$28 $26

$17

$92

Q2-17 Q3-17 Q4-17 Q1-18 Q2-18 Q3-18 Q4-18 Q1-19

$409

378377

397 397

222223

192308

$17.9$12.7$23.3 $25.5$19.4

155

$77.1$147$58.6 $96.9$240$61.7

212

$182$26.5

177

$124

225

428

$22.5

388378

216

FINTECH DEAL DASHBOARD

Notes:Source: Pitchbook. CapIq. GCA Deal Database.Market data as of 3/31/19.

Financing volume in Q1 ‘19 was in line with financing volume in Q1 ’18; M&A volume in Q1 ’19 nearly doubled Q1 ’18 volume due to

Fidelity National Information Services’ $43Bn acquisition of Worldpay

Page 6: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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FINTECH PUBLIC COMPANY LANDSCAPEFinTech sub-sectors and key operating stats ($Bn)

Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 3/31/19.

Information Services

Combined Market Cap: $35819/18 Rev. Growth: 6% 19 EBITDA Margin: 34%

4

Benefits Administration/Payroll

Combined Market Cap: $12119/18 Rev. Growth: 14%19 EBITDA Margin: 28%

2

Insurance Technology

Combined Market Cap: $4219/18 Rev. Growth: 10% 19 EBITDA Margin: 17%

5

Financial SaaS

Combined Market Cap: $17319/18 Rev. Growth: 20%19 EBITDA Margin: 22%

3Banking & Lending Technology

Combined Market Cap: $23219/18 Rev. Growth: 7% 19 EBITDA Margin: 29%

1

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Liquidity Venues

Combined Market Cap: $27219/18 Rev. Growth: 6%19 EBITDA Margin: 59%

7Investment Technology

Combined Market Cap: $23419/18 Rev. Growth: 8%19 EBITDA Margin: 28%

6

Trading Technology

Combined Market Cap: $10419/18 Rev. Growth: 5% 19 EBITDA Margin: 54%

10Real Estate & Mortgage Tech.

Combined Market Cap: $21019/18 Rev. Growth: 10% 19 EBITDA Margin: 17%

9

FINTECH PUBLIC COMPANY LANDSCAPEFinTech sub-sectors and key operating stats ($Bn)

Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 3/31/19.

Payments

Combined Market Cap: $1,09619/18 Rev. Growth: 10% 19 EBITDA Margin: 27%

8

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(30%)

(15%)

0%

15%

30%

45%

Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19

-10.5%

44.7%

18.0%

23.8%

30.4%

34.8%

-2.3%

12.0%

0.5%

-8.7%

FINTECH STOCK PRICE PERFORMANCE

LTM Share Price Performance

Notes:Source: CapIq. Market data as of 3/31/19.

Financial SaaS leads the FinTech pack on an LTM basis

6) Investment Technology

10) Trading Technology

1) Banking & Lending Technology

2) Benefits Administration/Payroll

3) Financial SaaS 5) Insurance Technology

4) Information Services

7) Liquidity Venues 8) Payments 9) Real Estate & Mortgage Technology

30.4% 34.8% 44.7% 12.0% 23.8% -10.5% -2.3% 18.0% 0.5% -8.7%

Page 9: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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0.0x

2.5x

5.0x

7.5x

10.0x

Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19

9.7x

4.7x4.8x

7.6x

4.2x

5.1x6.2x

3.7x3.1x2.8x

0%

5%

10%

15%

20%

25%

0.0x 2.0x 4.0x 6.0x 8.0x 10.0x 12.0x

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

15A / 16A 16A / 17A 17A / 18E 18A / 19E

0.0x

2.0x

4.0x

6.0x

8.0x

10.0x

2016 2017 2018 2019E

FINTECH PUBLIC COMPANY VALUATIONFinancial SaaS outperforms the FinTech market on a revenue growth and EV / ’19E Revenue basis

Notes:Source: CapIq.Market data as of 3/31/19.Lines display median multiples across comp groups for given year.

EV / ‘19E RevenueEV / Revenue

Median 18A/19E Revenue Growth to EV/’19E Revenue MultipleRevenue Growth

3.1x

4.7x

8.9%

1) Banking & Lending Technology

7.4%

2) Benefits Administration/Payroll

13.8%

3) Financial SaaS

20.2%

4) Information Services

5.9%

5) Insurance Technology

9.9%

6) Investment Technology

7.8%

7) Liquidity Venues

5.9%

8) Payments

9.8%

9) Real Estate & Mortgage Technology

9.6%

10) Trading Technology

4.9%18

A /

19

E R

ev.

Gro

wth

4.4x

3.9x

9.5%

15.6%9.7% 1

2

3

4

5

67

89

10

Page 10: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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0%

5%

10%

15%

20%

25%

0.0x 6.0x 12.0x 18.0x 24.0x 30.0x

0.0x

5.0x

10.0x

15.0x

20.0x

25.0x

30.0x

35.0x

Mar-18 May-18 Jul-18 Sep-18 Nov-18 Jan-19 Mar-19

18.7x

13.2x

5.2x

13.9x

15.1x

16.1x

12.5x

14.1x

15.8x

26.9x

0.0%

15.0%

30.0%

45.0%

60.0%

75.0%

15A / 16A 16A / 17A 17A / 18E 18A / 19E

0.0x

6.0x

12.0x

18.0x

24.0x

30.0x

2016 2017 2018 2019E

FINTECH PUBLIC COMPANY VALUATION (CONT’D)Financial SaaS outperforms the FinTech market on an EBITDA growth and EV / ‘19E EBITDA basis

Notes:Source: CapIq.Market data as of 3/31/19.Lines display median multiples across comp groups for given year.

EV / ‘19E EBITDAEV / EBITDA

Median 18A/19E EBITDA Growth to EV/’19E EBITDA MultipleEBITDA Growth

14.6x

1

2

3

4

56

7

89

10

14.0% 11.7%

18

A /

19

E

EBIT

DA

Gro

wth

1) Banking & Lending Technology

11.0%

2) Benefits Administration/Payroll

15.6%

3) Financial SaaS

20.4%

4) Information Services

5.8%

5) Insurance Technology

13.3%

6) Investment Technology

14.6%

7) Liquidity Venues

6.8%

8) Payments

12.6%

9) Real Estate & Mortgage Technology

11.5%

10) Trading Technology

8.9%

12.1x

15.7x14.3x

9.8%11.9%

Page 11: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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13.6x

16.5x

18.8x

19.3x

20.0x

22.9x

25.1x

25.6x

26.7x

27.0x

0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x

Investment Technology6

Real Estate & Mort. Tech9

Long-term growth is not necessarily correlated with FinTech public company P/E multiples or PEG ratios

FINTECH PUBLIC COMPANY VALUATION (CONT’D)

Notes: Figures represent medians of sub-sectors.Market data as of 3/31/19.Long-term EPS growth covers last 5 years.

16%

20%

10%

10%

17%

10%

14%

16%

14%

20%

2.1

2.2

2.4

2.3

2.7

2.0

1.6

1.4

1.4

0.8

2019 P/E Ratio PEG Ratio Long-Term EPS Growth

Banking & Lending Tech1

Financial SaaS3

Information Services4

Insurance Technology5

Liquidity Venues7

Payments8

Trading Technology10

Benefits Admin/Payroll2

Page 12: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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3/29/19Bessemer Venture Partners, T. Rowe Price, Technology Crossover Ventures,

Tiger Global ManagementSeries E $250

3/28/19Align Ventures, Beanstalk Ventures, Colle Capital Partners, Founders Fund,

Novel TMT Ventures, NTT DoCoMo Ventures, Sound VenturesSeries A $16

3/28/19 Goldman Sachs Investment Partners, Index Ventures Series B $24

3/28/19 Insight Venture Partners Series B $100

3/27/19 Bridgepoint Advisers Private Equity $160

3/27/19 Shuidihuzhu BlueRun Ventures, DST Global, Gaorong Capital, IDG Capital, Sinovation

Ventures, Tencent HoldingsSeries B $74

3/27/19Alibaba Entrepreneurs Fund, CreditEase Fintech Investment Fund, MindWorks

VenturesSeries A $15

3/27/19 .406 Ventures, Eight Roads Ventures, Great Hill Partners Series C $50

3/25/19DST Global, Gobi Partners, Hillhouse Capital Management, Horizons Ventures,

Sequoia Capital China, Square Peg Capital, Tencent HoldingsSeries C $100

3/25/19 Alibaba Group, Tencent Holdings Series A $77

3/25/19BNP Paribas, Moneta Seeds, Opera Tech Ventures, OurCrowd, Standard Bank of

South Africa, Viola Group, Yair Tauman, Yaron LambibaumSeries A $12

3/21/19Aleph, Citi Ventures, Hillsven Capital, Norwest Venture Partners, and Vintage

Investment PartnersSeries C $28

3/20/19Access Technology Ventures, Fifth Wall Ventures, General Atlantic, GGV

Capital, Google Ventures, Hawk Equity, Khosla Ventures, Lennar, New Series F $300

3/20/19 Green Visor Capital, Undisclosed Investors Series A $12

3/20/19Andreessen Horowitz, Bloomberg Beta, DAG Ventures, Enterprise Community

Partners, Financial Venture Studio, Prudential Financial, Ribbit CapitalSeries B $22

3/19/19Centana Growth Partners, Compound, Freestyle Capital, Propel Venture

Partners, Upside PartnershipSeries B $19

3/19/19 Atinum Investment, Ripple Labs, Vertex Ventures SE Asia Series C - II $21

3/18/19 GSR Ventures, Sequoia Capital China, Source Code Capital Series B $30

3/18/19 Undisclosed Investors Series C $60

3/14/19 Undisclosed Investors Series E $250

3/14/19 Bojiang Capital, Capital Wings, Haoxinda, Herui Leye Series B $14

3/14/19Astia Angels, CreditEase Fintech Investment Fund, Elaine Wynn, Eric Schmidt,

Gingerbread Capital, Khosla Ventures, MasterCard Worldwide, Morningstar, Series A - IV $33

Financial SaaS

Payments

Financial SaaS

Real Estate & Mortgage Tech.

Payments

Insurance Technology

Banking & Lending Technology

Financial SaaS

Payments

Payments

Financial SaaS

Real Estate & Mortgage Tech.

Financial SaaS

Banking & Lending Technology

Benefits Administration/Payroll

Financial SaaS

Banking & Lending Technology

Insurance Technology

Investment Technology

Financial SaaS

Financial SaaS

Payments

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY

Notes: Source: CapIq. Pitchbook.Selected deals from last calendar month.

Date

Announced Target Investors Type Amount ($MM) Sub-Sector

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3/14/19 B Capital Group, DSG Consumer Partners, Epiq Capital, Falcon Edge Capital Series E $32

3/13/19 Rinkelberg Capital, Prime Ventures, Credit Suisse Asset Management Series B $73

3/13/19Entrepreneurs Roundtable Accelerator, Grassy Creek Ventures, Insight Venture

Partners, Tola Capital, Wildcat Capital ManagementSeries B $20

3/13/19 Creation Investments Capital Management Series A - II $16

3/13/19Accel, Amazon, Binny Bansal, Intact Ventures, RPS Ventures, SAIF Partners

India, Techpro VenturesSeries C $65

3/13/19Fuchsia Venture Capital, Heritas Capital Management, HSBC Venture Capital,

Humanica, MDI Ventures, SingTel Innov8, Sumitomo Corporation Equity Asia, Series C $25

3/13/19Arbor Ventures, Battery Ventures, Bessemer Venture Partners, Eight Roads

Ventures, Presidio Ventures, Sumitomo CorporationSeries A - II $20

3/12/19Breyer Capital, Coatue Management, Entree Capital, Goodwater Capital, Union

Square Ventures, and Valar VenturesSeries E $65

3/11/19 Bluesky Equities, Prairie Merchant, Undisclosed Investors Series A $11

3/8/19 Chicago Ventures, Epic Ventures, Sidekick Fund, US Venture Partners Series B $13

3/7/19 capitalG, Falcon Edge Capital, LGT Impact Ventures, Maj Invest Series D $33

3/7/19 Baloise Group Series A $84

3/7/19 Sierra Ventures Series B $40

3/7/19 Nationwide Building Society Series B $20

3/6/19Breton Capital Management, First Data Ventures, G9 Ventures, Impact Engine,

Reach Capital, Rethink Impact, Salesforce Ventures, SixThirty, Vulcan CapitalSeries A $11

3/5/19CreditEase Fintech Investment Fund, Goldman Sachs, Mubadala Ventures,

Salesforce VenturesSeries B $125

3/5/19Cathay Innovation, Coatue Management, Dragoneer Investment Group, DST

Global, Forerunner Ventures, General Atlantic, ICONIQ Capital, Menlo VenturesSeries D $200

3/5/19Aspect Ventures, Elefund, Greycroft Partners, Moxley Holdings, Sirius

International Insurance Group, SVB CapitalSeries B $45

3/4/19Data Collective, Energize Ventures, Ignition Partners, Mitsui Sumitomo

Insurance Venture Capital, Nephila Capital, QBE Ventures, SYSTEMIQ, Series B $23

3/4/19 Accel, Bessemer Venture Partners, Elaia Partners, General Catalyst, Iris Capital Series C $60

3/4/19 Pantera Capital, Paradigm Series A - II $12

3/1/19Shuhe

TechnologySINA Corporation Series B $30

Banking & Lending Technology

Banking & Lending Technology

Financial SaaS

Information Services

Financial SaaS

Financial SaaS

Banking & Lending Technology

Payments

Financial SaaS

Insurance Technology

Benefits Administration/Payroll

Benefits Administration/Payroll

Benefits Administration/Payroll

Benefits Administration/Payroll

Insurance Technology

Insurance Technology

Banking & Lending Technology

Insurance Technology

Information Services

Insurance Technology

Trading Technology

Investment Technology

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY (CONT’D)

Notes: Source: CapIq. Pitchbook.Selected deals from last calendar month.

Date

Announced Target Investors Type Amount ($MM) Sub-Sector

Page 14: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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Offer

Date Issuer Use of Funds S&P Moody's Amount ($MM) Coupon Sub-Sector

3/25/19General Corporate Purposes /

Repayment of Debt SecuritiesNA Baa2 $676 1.75%

3/13/19 NA NA NA $144 1.00%

3/12/19 Acquisitions/Investments;

Repurchase of SecuritiesBBB- NA $500 0.75%

3/5/19 NA NA NA $125 1.63%

3/1/19 NA NA NA $50 4.65%

3/1/19 NA NA NA $89 4.25%

3/1/19 NA NA NA $50 4.65%

Median $125

Security Rating at Issuance

Payments

Liquidity Venues

Liquidity Venues

Liquidity Venues

Liquidity Venues

Liquidity Venues

Liquidity Venues

Offer

Date Issuer Ticker Type Amount ($MM) Offer Price Price to Date Sub-Sector

12/14/18 NASDAQ: QFIN IPO $51 $16.50 (7%)

10/25/18 NASDAQ: STNE IPO $1,400 $24.00 71%

10/25/18 NASDAQ: PT IPO $44 $11.88 8%

10/12/18 NYSE: PLAN IPO $264 $17.00 132%

Median $158 $17 40%

Financial SaaS

Financial SaaS

Payments

Banking & Lending Technology

SELECTED RECENT PUBLIC EQUITY AND DEBT FINANCINGS

Notes: Source: CapIq. Pitchbook.Price to Date as of 3/31/19.

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SELECTED RECENT M&A ACTIVITY

Notes: Source: CapIq. Pitchbook. 451 Group.Selected deals from last calendar month.

Date Enterprise EV / Revenue EV / EBITDA

Announced Acquirer Target Value ($MM) LTM LTM Sub-Sector

3/31/2019 $1,400 5.4x NA

3/28/2019 $146 NA NA

3/28/2019 $55 NA NA

3/26/2019Digital Banking

Joint Venture$448 NA NA

3/22/2019 $1,300 9.3x NA

3/20/2019 $110 NA NA

3/18/2019 $43,000 10.9x 16.9x

3/18/2019 NA NA NA

3/14/2019 $500 NA NA

3/13/2019 $140 1.8x 11.0x

3/12/2019 NA NA NA

3/12/2019 $60 NA NA

3/11/2019 $336 1.9x NA

3/11/2019 NA NA NA

3/8/2019 NA NA NA

3/5/2019 $1,000 NA NA

Median 5.4x 14.0x

Payments

Financial SaaS

Financial SaaS

Financial SaaS

Real Estate & Mortgage Tech.

Investment Technology

Banking & Lending Technology

Financial SaaS

Payments

Payments

Insurance Technology

Payments

Payments

Payments

Insurance Technology

Insurance Technology

Page 16: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

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PUBLIC COMPANY VALUATIONS

Ben

efit

s A

dm

in/P

ayro

llB

anki

ng

& L

en

din

g Te

chn

olo

gy

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Banking & Lending Technology

Intuit Inc. $261.41 $67,724 $66,804 15% 2.6 7% 11% 1% 13% 36% 9.7x 8.7x 26.9x 23.9x 39.5x 33.1x

Fidelity National Information Services, Inc. $113.10 $36,546 $44,828 11% 1.4 (0%) 4% 4% 7% 39% 5.3x 5.1x 13.7x 12.9x 15.6x 14.3x

First Data Corporation $26.27 $24,767 $41,811 14% 1.1 5% 5% 8% 5% 39% 4.6x 4.4x 11.7x 11.0x 15.7x 13.7x

Fiserv, Inc. $88.28 $34,569 $40,113 12% 2.1 6% 5% 8% 6% 38% 6.5x 6.2x 16.9x 15.9x 25.6x 22.8x

Wolters Kluwer N.V. $68.13 $18,520 $20,842 9% 2.4 4% 4% 6% 6% 29% 4.1x 3.9x 14.4x 13.6x 22.4x 21.0x

Temenos AG $147.45 $10,227 $10,747 17% 2.6 17% 11% 20% 15% 38% 10.9x 9.8x 28.7x 25.1x 42.8x 36.6x

Jack Henry & Associates, Inc. $138.74 $10,707 $10,681 11% 3.4 2% 7% (2%) 11% 33% 6.6x 6.2x 19.8x 17.9x 38.1x 33.3x

Black Knight, Inc. $54.50 $8,062 $9,383 12% 2.3 7% 8% 9% 10% 50% 7.9x 7.3x 15.9x 14.5x 27.9x 24.2x

Coupa Software Incorporated $90.98 $5,554 $5,407 30% NM 36% 21% NA 17% 8% 21.3x 17.6x NM NM NM NM

ACI Worldwide, Inc. $32.87 $3,818 $4,351 14% 2.5 9% 3% 26% 7% 29% 3.9x 3.8x 13.8x 12.9x 35.0x 29.3x

Ellie Mae, Inc. $98.69 $3,459 $3,156 15% 3.5 6% 9% 19% 13% 29% 6.2x 5.7x 21.7x 19.2x 51.4x 44.4x

Q2 Holdings, Inc. $69.26 $3,018 $3,024 24% NM 28% 23% 11% 89% 7% 9.8x 8.0x NM 76.1x NM NM

Bottomline Technologies (de), Inc. $50.09 $2,041 $2,054 15% 2.4 5% 11% 5% 14% 24% 4.7x 4.2x 19.6x 17.3x 35.6x 29.5x

LendingClub Corporation $3.09 $1,328 $1,670 36% NM 13% 13% 31% 40% 16% 2.1x 1.9x 13.1x 9.3x NM 59.2x

Enova International, Inc. $22.82 $769 $1,574 NA NM 16% 15% 12% 10% 18% 1.2x 1.1x 6.6x 6.0x 7.4x 6.2x

On Deck Capital, Inc. $5.42 $410 $1,165 NA NM 14% 11% 14% 33% 10% 2.6x 2.3x 24.7x 18.6x 10.6x 9.7x

GreenSky, Inc. $12.94 $649 $733 27% 0.7 32% 26% 23% 23% 38% 1.3x 1.1x 3.5x 2.8x 17.6x 14.1x

Elevate Credit, Inc. $4.34 $188 $692 NA NM 5% 11% 14% 14% 16% 0.8x 0.8x 5.2x 4.6x 7.5x 5.4x

Performant Financial Corporation $2.07 $110 $148 NA NM 27% 20% NA NM 0% 0.9x 0.8x NM 9.3x NM NM

Median 15% 2.4 7% 11% 11% 13% 29% 4.7x 4.4x 15.1x 14.0x 25.6x 23.5x

Benefits Administration/Payroll

Automatic Data Processing, Inc. $159.74 $69,587 $70,007 15% 1.9 6% 7% 12% 13% 24% 4.8x 4.5x 19.8x 17.6x 28.4x 24.9x

Paychex, Inc. $80.20 $28,824 $28,945 9% 3.1 17% 6% 16% 7% 41% 7.2x 6.8x 17.6x 16.5x 27.0x 24.8x

Insperity, Inc. $123.66 $5,062 $4,819 17% 1.6 14% 12% 16% 20% 6% 1.1x 1.0x 17.3x 14.5x 26.9x 22.6x

Paylocity Holding Corporation $89.19 $4,720 $4,616 24% 2.7 20% 23% 57% 28% 28% 10.2x 8.3x 36.2x 28.3x 64.2x 49.8x

TriNet Group, Inc. $59.74 $4,192 $4,323 NA NM 7% 11% 4% 11% 38% 4.6x 4.1x 12.2x 11.0x 18.6x 16.4x

HealthEquity, Inc. $73.98 $4,622 $4,260 24% 2.4 17% 15% 15% 19% 40% 12.6x 10.9x 31.3x 26.3x 57.8x 47.8x

Benefitfocus, Inc. $49.52 $1,587 $1,634 20% NM 17% 19% 156% 85% 7% 5.4x 4.6x 75.0x 40.5x NM NM

WageWorks, Inc. $37.76 $1,505 $726 15% 1.1 3% 3% 7% 6% 31% 1.4x 1.4x 4.6x 4.3x 16.1x 15.0x

Castlight Health, Inc. $3.75 $538 $466 15% NM (1%) NA NA NA 2% 3.0x NM NM NM NM NM

Median 16% 2.1 14% 11% 16% 16% 28% 4.8x 4.5x 18.7x 17.0x 27.0x 24.8x

Page 17: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

17

PUBLIC COMPANY VALUATIONS (CONT’D)

Info

rmat

ion

Ser

vice

s

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

Fin

anci

al S

aaS

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Financial SaaS

Intuit Inc. $261.41 $67,724 $66,804 15% 2.6 7% 11% 1% 13% 36% 9.7x 8.7x 26.9x 23.9x 39.5x 33.1x

Workday, Inc. $192.85 $42,813 $42,239 34% NM 26% 23% 38% 34% 19% 11.9x 9.7x 62.4x 46.4x NM NM

SS&C Technologies Holdings, Inc. $63.69 $16,056 $24,145 15% 1.1 36% 4% 46% 8% 39% 5.1x 4.9x 12.9x 12.0x 16.8x 15.1x

Paycom Software, Inc. $189.13 $11,059 $11,048 27% 2.2 26% 22% 20% 26% 41% 15.5x 12.7x 38.1x 30.3x 59.8x 47.2x

The Sage Group plc $9.13 $9,920 $10,767 4% 6.1 10% 7% (1%) 8% 26% 4.2x 3.9x 16.2x 15.0x 22.8x 20.8x

Coupa Software Incorporated $90.98 $5,554 $5,407 30% NM 36% 21% NA 17% 8% 21.3x 17.6x NM NM NM NM

Xero Limited $34.54 $4,833 $5,076 NA NM 34% 27% 102% 53% 20% 10.9x 8.6x 55.3x 36.2x NM NM

Paylocity Holding Corporation $89.19 $4,720 $4,616 24% 2.7 20% 23% 57% 28% 28% 10.2x 8.3x 36.2x 28.3x 64.2x 49.8x

Envestnet, Inc. $65.39 $3,148 $3,320 16% 1.9 10% 16% 15% 22% 20% 3.7x 3.2x 18.3x 15.0x 30.5x 25.4x

Q2 Holdings, Inc. $69.26 $3,018 $3,024 24% NM 28% 23% 11% 89% 7% 9.8x 8.0x NM 76.1x NM NM

Blucora, Inc. $33.38 $1,609 $1,785 20% 0.8 9% 10% 10% 13% 22% 2.9x 2.7x 13.5x 11.9x 16.1x 13.7x

Benefitfocus, Inc. $49.52 $1,587 $1,634 20% NM 17% 19% NM 85% 7% 5.4x 4.6x 75.0x 40.5x NM NM

Alfa Financial Software Holdings PLC $1.95 $586 $529 NA NM 15% 10% 29% 16% 36% 4.7x 4.2x 13.0x 11.2x 0.2x 0.2x

Median 20% 2.2 20% 19% 20% 22% 22% 9.7x 8.0x 26.9x 26.1x 26.7x 23.1x

Information Services

S&P Global Inc. $210.55 $51,812 $53,539 10% 2.3 4% 6% 6% 7% 51% 8.2x 7.7x 16.1x 15.1x 23.3x 21.1x

RELX PLC $21.38 $41,721 $49,708 9% 2.1 7% 4% 9% 3% 36% 4.9x 4.7x 13.6x 13.2x 18.0x 16.9x

Moody's Corporation $181.09 $34,192 $38,055 10% 2.2 5% 6% 6% 7% 48% 8.2x 7.7x 17.0x 15.8x 23.1x 20.8x

Thomson Reuters Corporation $59.16 $29,649 $30,159 10% 5.0 8% 3% 8% 28% 24% 5.1x 4.9x 21.5x 16.9x 50.1x 32.7x

Experian plc $27.07 $24,394 $27,824 9% 2.7 4% 9% 4% 12% 34% 5.5x 5.1x 16.2x 14.5x 25.1x 22.7x

IHS Markit Ltd. $54.38 $21,738 $27,201 10% 2.1 11% 6% 12% 8% 39% 6.1x 5.8x 15.6x 14.4x 21.3x 18.9x

Verisk Analytics, Inc. $133.00 $21,747 $24,327 10% 2.9 7% 7% 9% 8% 48% 9.5x 8.9x 19.8x 18.4x 30.0x 27.0x

Wolters Kluwer N.V. $68.13 $18,520 $20,842 9% 2.4 4% 4% 6% 6% 29% 4.1x 3.9x 14.4x 13.6x 22.4x 21.0x

MSCI Inc. $198.84 $16,835 $18,506 10% 3.3 7% 9% 9% 11% 55% 12.1x 11.0x 22.0x 19.8x 32.8x 28.4x

Equifax Inc. $118.50 $14,382 $16,794 8% 2.5 2% 6% 2% 10% 34% 4.8x 4.5x 14.3x 13.0x 20.9x 19.0x

TransUnion $66.84 $12,517 $16,362 12% 2.1 11% 8% 10% 10% 39% 6.3x 5.8x 16.2x 14.6x 25.4x 22.2x

Nielsen Holdings plc $23.67 $8,413 $16,276 7% 2.1 (0%) 2% (1%) 6% 28% 2.5x 2.5x 8.9x 8.4x 13.7x 12.5x

Gartner, Inc. $151.68 $13,607 $15,733 14% 2.7 7% 11% 3% 13% 17% 3.7x 3.3x 21.4x 19.0x 38.2x 32.6x

Informa plc $9.69 $12,126 $15,514 6% 2.4 22% 3% 26% 5% 35% 4.2x 4.1x 12.1x 11.6x 14.5x 13.7x

FactSet Research Systems Inc. $248.27 $9,443 $9,773 12% 2.2 6% 5% 13% 9% 36% 6.7x 6.4x 18.7x 17.2x 25.3x 22.8x

Fair Isaac Corporation $271.63 $7,897 $8,649 10% 3.8 8% 7% NA NA NA 7.6x 7.0x NM NM 37.8x 34.1x

News Corporation $12.44 $7,281 $7,317 (34%) (1.0) 3% 1% 5% 8% 13% 0.7x 0.7x 5.7x 5.2x 33.7x 26.8x

CoreLogic, Inc. $37.26 $2,985 $4,694 8% 1.8 (7%) 2% (6%) 8% 28% 2.8x 2.8x 10.1x 9.4x 15.4x 13.3x

LiveRamp Holdings, Inc. $54.57 $3,738 $2,192 25% NM (56%) 29% (135%) NA (12%) 6.4x 5.0x NM NM NM NM

Euromoney Institutional Investor PLC $16.38 $1,762 $1,659 7% 2.2 3% 6% 0% 6% 27% 3.1x 2.9x 11.3x 10.6x 16.1x 15.2x

comScore, Inc. $20.25 $1,204 $1,364 NA NM 5% 11% 119% 115% 6% 3.1x 2.8x 54.1x 25.2x NM NM

National Research Corporation $38.60 $956 $981 NA NM 8% NA NA NA 34% 7.6x NM 22.2x NM 33.3x NM

Forrester Research, Inc. $48.35 $890 $750 16% 1.9 29% NA 21% NA 11% 1.6x 1.5x 14.2x 11.6x 30.0x 24.0x

Median 10% 2.3 6% 6% 6% 8% 34% 5.1x 4.8x 16.1x 14.4x 25.1x 21.7x

Page 18: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

18

PUBLIC COMPANY VALUATIONS (CONT’D)

Inve

stm

ent

Tech

no

logy

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

Insu

ran

ce T

ech

no

logy

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Insurance Technology

Verisk Analytics, Inc. $133.00 $21,747 $24,327 10% 2.9 7% 7% 9% 8% 48% 9.5x 8.9x 19.8x 18.4x 30.0x 27.0x

Guidewire Software, Inc. $97.16 $7,910 $7,147 19% NM 27% 20% 12% 19% 22% 11.0x 9.1x 49.6x 41.8x NM 74.7x

HealthEquity, Inc. $73.98 $4,622 $4,260 24% 2.4 17% 15% 15% 19% 40% 12.6x 10.9x 31.3x 26.3x 57.8x 47.8x

Ebix, Inc. $49.37 $1,508 $2,065 15% 0.7 21% 22% 21% 19% 34% 3.4x 2.8x 10.2x 8.6x 11.1x 9.0x

Benefitfocus, Inc. $49.52 $1,587 $1,634 20% NM 9% 12% 94% 97% 4% 6.3x 5.6x NM NM NM NM

eHealth, Inc. $62.34 $1,406 $1,397 NA NM 31% 13% NA 139% 5% 6.2x 5.5x NM 55.7x NM NM

CorVel Corporation $65.24 $1,216 $1,119 NA NM 8% NA 2% NA 12% 1.9x NM 15.8x NM NM NM

Sapiens International Corporation N.V. $15.28 $764 $778 5% 4.6 10% 8% 24% 12% 17% 2.4x 2.3x 14.4x 12.9x 22.9x 18.9x

Crawford & Company $9.13 $490 $627 NA NM 3% 3% (1%) 7% 11% 0.6x 0.5x 5.0x 4.7x 11.0x 10.0x

Majesco $7.05 $302 $301 NA NM NA NA NA NA NA NM NM NM NM NM NM

Median 17% 2.7 10% 13% 13% 19% 17% 6.2x 5.6x 15.8x 18.4x 22.9x 22.9x

Investment Technology

The Bank of New York Mellon Corporation $50.43 $48,153 $71,219 8% 1.6 6% 3% NA NA NA 4.3x 4.2x NM NM 11.9x 11.4x

State Street Corporation $65.81 $24,920 $32,119 14% 0.6 8% 5% NA NA NA 2.7x 2.5x NM NM 8.8x 8.0x

SS&C Technologies Holdings, Inc. $63.69 $16,056 $24,145 15% 1.1 36% 4% 46% 8% 39% 5.1x 4.9x 12.9x 12.0x 16.8x 15.1x

Northern Trust Corporation $90.41 $19,754 $23,149 12% 1.1 12% 12% NA NA NA 3.9x 3.5x NM NM 13.7x 12.4x

TD Ameritrade Holding Corporation $49.99 $28,013 $23,128 24% 0.5 5% 8% 19% 11% 54% 3.8x 3.6x 7.1x 6.4x 12.3x 10.9x

The Charles Schwab Corporation $42.76 $57,051 $23,073 19% 0.8 9% 7% 14% 6% 50% 2.1x 2.0x 4.1x 3.9x 15.3x 13.8x

Broadridge Financial Solutions, Inc. $103.69 $11,995 $12,939 10% 2.2 6% 5% 14% 6% 20% 2.8x 2.7x 13.8x 13.1x 21.5x 19.7x

Computershare Limited $12.13 $6,584 $8,032 10% 1.7 4% 1% 11% 6% 31% 3.4x 3.3x 10.9x 10.3x 16.2x 15.4x

SEI Investments Company $52.25 $8,030 $7,276 12% 1.4 1% 6% 21% 9% 38% 4.4x 4.2x 11.6x 10.6x 16.8x 14.8x

SimCorp A/S $96.60 $3,835 $3,781 15% 2.5 9% 8% 10% 8% 29% 7.9x 7.4x 27.4x 25.4x 38.4x 35.4x

Envestnet, Inc. $65.39 $3,148 $3,320 16% 1.9 10% 16% 15% 22% 20% 3.7x 3.2x 18.3x 15.0x 30.5x 25.4x

Blucora, Inc. $33.38 $1,609 $1,785 20% 0.8 6% 7% 6% 11% 21% 3.0x 2.8x 14.1x 12.7x 16.5x 14.1x

IRESS Limited $9.28 $1,596 $1,718 10% 2.8 8% 6% 17% 9% 28% 4.9x 4.6x 17.6x 16.1x 27.0x 24.2x

Equiniti Group plc $2.71 $971 $1,365 NA NM 7% 4% 12% 8% 24% 1.9x 1.8x 7.8x 7.2x 10.9x 10.2x

Sanne Group plc $7.03 $1,008 $1,075 NA NM 17% 11% 26% 11% 35% 5.0x 4.5x 14.5x 13.0x 18.9x 16.7x

First Derivatives plc $35.03 $919 $950 NA NM 15% 11% 14% 11% 18% 3.1x 2.8x 17.4x 15.7x 30.8x 27.6x

StatPro Group plc $1.45 $95 $127 NA NM 8% 6% 16% 9% 18% 1.7x 1.6x 9.5x 8.7x 13.2x 11.5x

Median 14% 1.4 8% 6% 15% 9% 28% 3.7x 3.3x 13.4x 12.3x 16.5x 14.8x

Page 19: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

19

PUBLIC COMPANY VALUATIONS (CONT’D)

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

Liq

uid

ity

Ve

nu

es

Liquidity Venues

CME Group Inc. $164.58 $58,893 $61,847 10% 2.4 16% 6% 7% 9% 65% 12.3x 11.6x 18.9x 17.4x 23.6x 21.5x

Intercontinental Exchange, Inc. $76.14 $43,074 $49,791 10% 2.0 6% 5% 6% 7% 65% 9.5x 9.0x 14.7x 13.7x 20.0x 18.0x

Hong Kong Exchanges and Clearing Limited $34.85 $43,481 $40,509 10% 3.3 10% 11% 12% 11% 76% 18.2x 16.4x 24.1x 21.7x 32.9x 29.1x

London Stock Exchange Group plc $61.87 $21,506 $22,382 13% 2.0 8% 7% 18% 10% 55% 7.6x 7.2x 13.9x 12.7x 24.6x 21.5x

Nasdaq, Inc. $87.49 $14,472 $17,656 7% 2.4 4% 4% 3% 12% 51% 7.0x 6.7x 13.7x 12.3x 18.1x 16.0x

B3 S.A. - Brasil, Bolsa, Balcão $8.25 $16,871 $16,362 16% 1.3 13% 13% 13% 14% 71% 11.6x 10.3x 16.4x 14.4x 20.9x 18.9x

Cboe Global Markets, Inc. $95.44 $10,651 $11,555 13% 1.5 20% (0%) 23% (0%) 68% 9.7x 9.7x 14.2x 14.2x 20.1x 19.8x

MarketAxess Holdings Inc. $246.08 $9,262 $8,927 NA NM 11% 11% 11% 14% 55% 18.4x 16.5x 33.2x 29.2x 48.3x 42.6x

ASX Limited $49.58 $9,598 $8,795 5% 5.3 6% 5% 6% 4% 75% 14.0x 13.4x 18.6x 17.8x 28.1x 27.0x

Singapore Exchange Limited $5.40 $5,773 $5,257 5% 4.2 6% 5% 10% 5% 59% 7.8x 7.4x 13.1x 12.5x 19.6x 18.8x

Euronext N.V. $63.41 $4,406 $4,516 8% 2.0 1% 4% 1% 8% 57% 6.3x 6.1x 11.0x 10.3x 16.1x 14.9x

TMX Group Limited $64.40 $3,598 $4,239 NA NM 5% 5% 11% 7% 56% 6.7x 6.4x 11.9x 11.1x 15.7x 14.3x

Deutsche Börse Aktiengesellschaft $128.28 $23,520 $2,499 11% 1.7 4% 7% 5% 8% 61% 0.8x 0.7x 1.2x 1.1x 19.0x 17.3x

Bolsas y Mercados Españoles, Sociedad Holding de Mercados y Sistemas Financieros, S.A.$27.97 $2,322 $2,005 4% 3.9 (0%) 3% (2%) 4% 60% 5.8x 5.6x 9.6x 9.2x 15.4x 14.7x

Bursa Malaysia Berhad $1.68 $1,359 $1,267 7% 3.4 4% 4% 2% 4% 59% 9.1x 8.8x 15.5x 15.0x 24.2x 23.2x

Bolsa Mexicana de Valores, S.A.B. de C.V. $2.07 $1,229 $1,091 9% 1.8 8% 8% 8% 16% 55% 5.6x 5.2x 10.2x 8.8x 16.7x 15.3x

JSE Limited $9.17 $784 $605 NA NM 2% 13% 6% 13% 49% 3.9x 3.4x 7.9x 6.9x 12.5x 10.9x

Gielda Papierów Wartosciowych w Warszawie S.A. $10.17 $427 $341 NA NM (6%) (1%) (10%) (3%) 56% 3.9x 4.0x 7.0x 7.3x 12.7x 13.6x

Hellenic Exchanges - Athens Stock Exchange SA $4.81 $291 $205 47% 1.1 11% 16% 37% 42% 34% 6.1x 5.2x 17.7x 12.5x 53.3x 33.7x

Median 10% 2.0 6% 5% 7% 8% 59% 7.6x 7.2x 13.9x 12.5x 20.0x 18.8x

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Page 20: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

20

PUBLIC COMPANY VALUATIONS (CONT’D)

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

Pa

ymen

ts

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Payments

Networks

Visa Inc. $156.19 $343,159 $348,042 17% 1.7 10% 11% 12% 12% 71% 14.9x 13.4x 21.1x 18.8x 28.5x 24.4x

Mastercard Incorporated $235.45 $241,550 $239,506 19% 1.6 12% 13% 15% 15% 61% 14.3x 12.6x 23.6x 20.5x 31.2x 26.4x

American Express Company $109.30 $91,675 $126,385 11% 1.2 8% 8% NA NA NA 2.9x 2.7x NM NM 13.4x 12.2x

PayPal Holdings, Inc. $103.84 $121,826 $114,715 19% 1.9 16% 18% 18% 19% 26% 6.4x 5.4x 24.5x 20.6x 36.0x 29.8x

Discover Financial Services $71.16 $23,215 $37,133 11% 0.8 7% 6% NA NA NA 3.3x 3.1x NM NM 8.2x 7.5x

Merchant Processing

Worldpay, Inc. $113.50 $34,114 $41,813 16% 1.9 83% 10% 83% 14% 48% 10.8x 9.8x 22.4x 19.6x 29.6x 24.5x

First Data Corporation $26.27 $24,767 $41,811 14% 1.3 6% 5% 8% 8% 39% 4.8x 4.6x 12.6x 11.7x 17.9x 15.7x

Square, Inc. $74.92 $31,444 $31,219 48% NM 42% 35% 63% 57% 19% 13.8x 10.3x 74.7x 47.6x NM 67.5x

Global Payments Inc. $136.52 $21,550 $26,166 15% 1.5 12% 9% 14% 15% 36% 5.9x 5.4x 16.4x 14.3x 22.7x 19.4x

Adyen N.V. $783.39 $23,172 $21,745 38% NM 37% 36% 40% 40% 53% 39.7x 29.3x 74.5x 53.2x NM 79.1x

Total System Services, Inc. $95.01 $16,855 $20,302 12% 1.7 7% 7% 6% 9% 36% 5.0x 4.7x 14.0x 12.8x 19.5x 17.2x

Wirecard AG $125.36 $15,491 $14,280 35% 0.8 26% 25% 33% 34% 29% 4.8x 3.8x 16.5x 12.3x 27.1x 20.1x

Cielo S.A. $2.44 $6,618 $7,926 3% 3.9 (6%) 6% (18%) 8% 35% 2.8x 2.6x 8.1x 7.5x 9.8x 9.3x

GMO Payment Gateway, Inc. $70.93 $5,218 $4,913 31% NM 25% 24% 31% 27% 30% 15.1x 12.2x 50.3x 39.6x NM 76.1x

EVERTEC, Inc. $27.81 $1,956 $2,429 6% 2.6 4% 5% 3% 6% 47% 5.1x 4.9x 11.1x 10.4x 14.8x 13.6x

EVO Payments, Inc. $29.05 $1,944 $2,320 14% 3.7 8% 9% 9% 13% 27% 3.8x 3.5x 14.4x 12.7x 52.2x 39.8x

SafeCharge International Group Limited $3.91 $595 $502 13% 1.5 15% 14% 11% 14% 26% 3.2x 2.8x 12.1x 10.6x 19.1x 16.5x

i3 Verticals, Inc. $24.02 $220 $274 NA NM NA 11% NA 13% 27% 2.5x 2.2x 9.3x 8.2x 44.5x 32.0x

Prepaid / Closed Loop

Alliance Data Systems Corporation $174.98 $9,274 $30,594 11% 0.8 3% 8% (0%) 7% 26% 3.8x 3.5x 14.7x 13.7x 8.0x 7.1x

FleetCor Technologies, Inc. $246.59 $21,172 $24,960 16% 1.4 7% 10% 9% 12% 57% 9.6x 8.8x 16.8x 15.0x 21.2x 18.4x

Edenred SA $45.53 $10,836 $11,595 14% 2.1 13% 9% 17% 10% 40% 6.5x 6.0x 16.1x 14.7x 29.9x 26.8x

WEX Inc. $191.99 $8,282 $10,091 16% 1.4 14% 10% 14% 11% 42% 5.9x 5.4x 14.1x 12.7x 21.2x 18.3x

Green Dot Corporation $60.65 $3,212 $2,158 10% 1.6 10% 10% 27% 13% 28% 1.9x 1.7x 6.8x 6.0x 16.6x 14.5x

3Pea International, Inc. $7.95 $369 $363 NA NM 69% 60% 123% 77% 28% 9.2x 5.8x 33.2x 18.7x 69.1x 32.4x

Net 1 UEPS Technologies, Inc. $3.59 $204 $232 NA NM (21%) 11% NA 161% 6% 0.5x 0.5x 8.9x 3.4x 16.0x 6.5x

Other Payments Technology

The Sage Group plc $9.13 $9,920 $10,767 4% 6.1 10% 7% (1%) 8% 26% 4.2x 3.9x 16.2x 15.0x 22.8x 20.8x

The Western Union Company $18.47 $8,051 $10,511 3% 2.8 0% 2% 2% 2% 25% 1.9x 1.8x 7.5x 7.3x 9.9x 9.3x

Euronet Worldwide, Inc. $142.59 $7,396 $6,983 13% 1.6 15% 14% 25% 17% 21% 2.4x 2.1x 11.3x 9.7x 20.6x 17.6x

Ingenico Group - GCS $71.40 $4,412 $6,185 12% 1.2 14% 6% 10% 12% 18% 1.8x 1.7x 10.1x 9.0x 13.6x 12.3x

NCR Corporation $27.29 $3,246 $5,947 4% 2.4 2% 2% 13% 5% 16% 0.9x 0.9x 5.7x 5.4x 9.7x 8.5x

Cardtronics plc $35.58 $1,646 $2,420 NA NM (11%) 0% NM (2%) 22% 1.8x 1.8x 8.3x 8.5x 16.9x 17.4x

Everi Holdings Inc. $10.52 $740 $1,597 20% NM 13% 8% 8% 14% 49% 3.4x 3.2x 6.9x 6.1x NM NM

MoneyGram International, Inc. $2.04 $115 $871 NA NM (4%) 2% (10%) 4% 16% 0.6x 0.6x 3.9x 3.8x 4.9x 4.5x

International Money Express, Inc. $11.66 $422 $466 NA NM 20% 20% 21% 21% 17% 1.4x 1.2x 8.2x 6.7x 18.8x 14.7x

Cass Information Systems, Inc. $47.30 $687 $456 NA NM NA NA NA NA NA NM NM NM NM NM NM

Cardlytics, Inc. $16.54 $372 $379 20% NM 26% 40% NA NA (3%) 2.0x 1.4x NM 23.8x NM 57.0x

Earthport plc $0.48 $303 $274 NA NM 3% 36% NA NA (27%) 8.3x 6.1x NM NM NM NM

eServGlobal Limited $0.07 $90 $71 NA NM (8%) NA NA NA (55%) 6.3x NM NM NM NM NM

Median 14% 1.6 10% 10% 13% 13% 27% 4.2x 3.7x 14.1x 12.7x 19.3x 17.9x

Page 21: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

21

PUBLIC COMPANY VALUATIONS (CONT’D)

Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >85 considered NM.

Rea

l Est

ate

& M

ort

gage

Te

ch.

Trad

ing

Tech

.

Real Estate & Mortgage Technology

Booking Holdings Inc. $1,744.91 $78,543 $80,933 17% 1.0 7% 10% 5% 9% 39% 5.2x 4.7x 13.5x 12.3x 17.3x 15.6x

Expedia Group, Inc. $119.00 $17,516 $18,762 19% 0.9 10% 10% 14% 12% 18% 1.5x 1.4x 8.4x 7.5x 17.1x 14.6x

CoStar Group, Inc. $466.42 $17,002 $15,901 17% 2.8 16% 15% 19% 19% 36% 11.5x 10.0x 31.9x 26.9x 46.8x 39.7x

Fidelity National Financial, Inc. $36.55 $10,063 $9,582 NA NM (2%) 2% 12% 4% 15% 1.3x 1.3x 8.8x 8.4x 13.5x 12.4x

Black Knight, Inc. $54.50 $8,062 $9,383 12% 2.3 7% 8% 9% 10% 50% 7.9x 7.3x 15.9x 14.5x 27.9x 24.2x

Ocwen Financial Corporation $1.82 $244 $8,031 NA NM 8% 2% NA NA NA 7.0x 6.8x NM NM NM NM

Jones Lang LaSalle Incorporated $154.18 $7,052 $7,577 13% 1.1 4% 3% (2%) 12% 10% 0.8x 0.8x 8.1x 7.3x 13.4x 12.3x

REA Group Limited $53.03 $6,985 $7,161 13% 2.2 11% 11% 15% 15% 58% 10.5x 9.5x 18.1x 15.8x 28.0x 24.3x

TripAdvisor, Inc. $51.45 $7,107 $6,520 13% 2.0 8% 9% 12% 12% 27% 3.8x 3.4x 13.8x 12.3x 26.6x 23.2x

Zillow Group, Inc. $34.20 $6,997 $6,291 5% NM 51% 32% (74%) 123% 3% 3.1x 2.4x NM 54.3x NM NM

RealPage, Inc. $60.69 $5,539 $5,908 18% 1.9 14% 11% 22% 16% 28% 6.0x 5.4x 21.0x 18.0x 34.6x 29.6x

Rightmove plc $6.64 $5,901 $5,892 13% 1.9 10% 8% 9% 8% 77% 15.6x 14.5x 20.4x 19.0x 25.4x 23.2x

First American Financial Corporation $51.50 $5,741 $5,046 11% 1.0 0% 2% 11% 5% 15% 0.9x 0.9x 5.9x 5.6x 11.3x 10.9x

Realogy Holdings Corp. $11.40 $1,302 $4,872 NA NM (1%) 3% (9%) 4% 10% 0.8x 0.8x 8.1x 7.8x 8.9x 7.7x

LendingTree, Inc. $351.56 $4,511 $4,782 32% 1.4 35% 18% 37% 23% 20% 4.6x 3.9x 22.8x 18.4x 45.7x 34.9x

CoreLogic, Inc. $37.26 $2,985 $4,694 8% 1.8 (7%) 2% (6%) 8% 28% 2.8x 2.8x 10.1x 9.4x 15.4x 13.3x

Radian Group Inc. $20.74 $4,431 $4,475 6% 1.3 11% 6% NA NA NA 3.2x 3.0x NM NM 7.4x 6.9x

Colliers International Group Inc. $66.79 $2,629 $3,174 19% 0.8 10% 7% 20% 8% 12% 1.0x 1.0x 8.5x 7.9x 14.3x 13.3x

Ellie Mae, Inc. $98.69 $3,459 $3,156 15% 3.5 6% 9% 19% 13% 29% 6.2x 5.7x 21.7x 19.2x 51.4x 44.4x

AppFolio, Inc. $79.40 $2,692 $2,651 18% 4.5 33% 24% 29% 34% 21% 10.5x 8.5x 50.6x 37.8x 80.5x 57.1x

Moneysupermarket.com Group PLC $4.85 $2,599 $2,561 NA NM 11% 6% 10% 7% 36% 5.1x 4.8x 14.1x 13.2x 20.1x 18.5x

Redfin Corporation $20.27 $1,834 $1,520 NA NM 30% 27% 63% NM 1% 3.2x 2.5x NM 54.9x NM NM

Marcus & Mill ichap, Inc. $40.73 $1,590 $1,245 6% 2.9 4% 3% (2%) 5% 15% 1.5x 1.4x 9.8x 9.4x 17.6x 16.9x

Stewart Information Services Corporation $42.69 $1,013 $944 NA NM 1% 2% 15% 19% 7% 0.5x 0.5x 7.0x 5.9x 15.2x 12.4x

RE/MAX Holdings, Inc. $38.54 $684 $852 156% 0.1 29% 3% 2% 6% 39% 3.1x 3.0x 8.0x 7.6x 17.3x 16.2x

Lifull Co., Ltd. $5.23 $702 $665 20% 1.2 20% 12% 16% 21% 16% 1.7x 1.6x 11.2x 9.2x 23.5x 18.3x

Altisource Portfolio Solutions S.A. $23.67 $386 $628 NA NM (14%) NA (24%) NA 8% 0.8x NM 9.7x NM 11.3x NM

QuinStreet, Inc. $13.39 $667 $604 25% 1.2 9% 16% 27% 32% 11% 1.2x 1.1x 11.6x 8.8x 29.1x 19.2x

Agilysys, Inc. $21.17 $488 $451 NA NM 11% 14% (5%) 65% 7% 3.0x 2.6x 43.5x 26.3x NM NM

Real Matters Inc. $4.05 $351 $281 59% 1.0 (7%) 2% (38%) 109% 2% 1.0x 1.0x 48.5x 23.2x 57.8x 50.6x

Median 16% 1.4 10% 8% 12% 12% 17% 3.1x 2.8x 12.5x 12.3x 18.8x 18.3x

Trading Technology

TD Ameritrade Holding Corporation $49.99 $28,013 $23,128 24% 0.5 5% 8% 19% 11% 54% 3.8x 3.6x 7.1x 6.4x 12.3x 10.9x

The Charles Schwab Corporation $42.76 $56,995 $23,017 19% 0.8 9% 7% 14% 6% 50% 2.1x 1.9x 4.1x 3.9x 15.3x 13.8x

E*TRADE Financial Corporation $46.43 $11,289 $11,349 20% 0.6 4% 4% 4% 6% 54% 3.8x 3.6x 7.0x 6.6x 11.2x 10.1x

Virtu Financial, Inc. $23.75 $2,549 $3,441 NA NM (1%) 4% (12%) 18% 55% 3.4x 3.3x 6.3x 5.3x 13.4x 11.1x

Interactive Brokers Group, Inc. $51.88 $3,896 $2,164 20% 1.1 8% 12% 61% 11% 97% 1.1x 0.9x 1.1x 1.0x 21.6x 19.0x

GAIN Capital Holdings, Inc. $6.28 $235 $140 8% 1.8 (5%) 9% (13%) NA 22% 0.4x 0.4x 1.9x 1.5x 13.8x 8.2x

INTL FCStone Inc. $38.76 $740 ($1,000) NA NM NA NA NA NA NA NM NM NM NM NM NM

Median 20% 0.8 5% 7% 9% 11% 54% 2.7x 2.6x 5.2x 4.6x 13.6x 11.0x

($MM, except per share data)Stock EPS Operating Metrics Trading Metrics

Price Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 3/31/19 Value Value Growth PEG 19E/18A 20E/19E 19E/18A 20E/19E 19E 19E 20E 19E 20E 19E 20E

Page 22: FINTECH SECTOR REPORT - GCA Altium...Real Estate Tech Preferred Financing We advised Loanboox Banking & Lending Tech We advised Bowmark Capital Financial SaaS Acquired To 5 Select

Global investment bank that provides strategic M&A and capital markets advisory services to growth companies and market leaders

GCA: A LEADING INDEPENDENT GLOBAL INVESTMENT BANK

GCA operates as GCA in America and Asia, and GCA Altium in Europe

NEW YORK

ZURICH

MILAN

FRANKFURT

MUNICH

TEL AVIVSAN FRANCISCO

LONDON

MANCHESTER

MUMBAI

OSAKA

SHANGHAI

SINGAPORE

TOKYO

NEW DELHI

NAGOYA

HO CHI MINH CITY

TAIPEI

Globally integrated

platform with 21

offices across

America, Asia and

Europe

Geographically balanced,

synergistic and complementary

sector focus areas

across the firm

Strong in key

growth sectors

such as Technology and Industrials

Strong cross-border

capabilities and

deal flow with 35%

of all transactions

cross-border

400+professionals

375+ deals closed in the last 3 years

PARISLEEDS

FUKUOKA