We are pleased to be sharing our latest quarterly report with you. In this report, we look at the emerging trends and notable M&A transactions in Financial Technology during the third quarter of 2024.

During this quarter we witnessed a strong commitment from financial technology providers to invest in the Asset & Wealth Management space (Blackrock’s acquisition of wealth management tech provider Envestnet, as well as BNY Mellon’s investment in middle-to-back office asset management tech provider, Archer). We also saw continued growth and consolidation in the EMEA region in InsureTech (Astorg’s purchase of insurance broker trading system Acturis, along with UK-based Pollen Street Capital’s acquisition of insurance and pension software system provider Keylane).

• Payments experienced a high level of M&A in Q3 2024, with 35 companies in this sector acquired, representing 26% of total deals reported. Data and Analytics was in second place at 26 transactions, representing 19% of total deals reported. Blockchain earned the third place at 17 transactions, representing 12%.

• Overall, deal volumes increased slightly in Q3 2024 vs Q2 2024, with 137 in the current quarter versus 130 in the prior period.

• Average deal values, where reported, saw a marked increase in Q3, both overall and when excluding deals larger than $1 billion as outliers. Q3 also saw four transactions valued at more than $2 billion.

• Public company valuations, on average, grew during the quarter.

• Overall, the M&A market for Financial Technology saw a slightly elevated level of activity compared to the previous quarter, with a significant increase in acquisitions in the Payments sector.