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 second quarter of 2024.

During this quarter, we witnessed a continued commitment from financial technology providers to invest in the data & analytics space (Blackrock’s acquisition of private market data provider Preqin, as well as S&P Global’s investment in investment technology platform Visible Alpha), and continued growth and consolidation in the EMEA region in Banking Software (EMERAM’s purchase of digital banking software CoCoNet, along with with Austria-based CPB Software’s acquisition of banking software solution provider EFDIS).

• Payments experienced a high level of M&A in Q1 2024, with 27 companies in this sector acquired, representing 21% of total deals reported. Blockchain was a close second at 25 transactions, representing 19% of total deals reported. Banking Software and RegTech tied for third place at 11 transactions, representing 8% each.

• Overall, deal volumes stayed flat in Q2 2024 vs Q1 2024, with 130 in the current quarter versus 133 in the prior period.

• Average deal values, where reported, saw a marked increase in Q2, when deals larger than $1 billion are excluded as outliers. Q2 also saw two transactions valued at more than $3 billion.

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

• Overall, the M&A market for Financial Technology saw a similar level of activity in most sectors compared to the previous quarter, with a significant increase in acquisitions in the Blockchain sector.