fintech sector report - gca altium · 3. select january & february financing transactions...

FINTECHSECTOR REPORTJanuary - February 2018

2

Strong sector and product expertise across FinTech and related sub-sectorsGCA FINANCIAL TECHNOLOGY 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]

Steve FletcherManaging DirectorHead of SoftwarePhone: (415) 318 - 3661Mobile: (415) 518 - [email protected]

Chris GoughManaging Director

M&A/Real Estate TechPhone: (415) 318 - 3658Mobile: (415) 385 - [email protected]

Sean MinnihanManaging Director

Head of FinTechPhone: (212) 999 - 7077Mobile: (917) 364 - 6230

[email protected]

David KruegerVice President

FinTech/WealthTechPhone: (212) 537 - 4534Mobile: (616) 822 - [email protected]

We Advised TSYS

Acquisition of

We Advised Vindicia

Acquired by

We Advised Edo

Acquired byStrategic Investment

We Advised ControlExpertFinancial Advisor

Growth Investment

Sale of

Financial Advisor

to

Payments

Banking & Lending Tech

Payments Insurance Technology Payments Payments

Financial Advisor

Growth Investment

We Advised CHX

Acquired by

Investor Group led by Casin Group

We Advised Blucora

Acquisition of

We Advised AWL

Acquired by Preferred Stock Investmentfrom

Financial Advisor

Payments

Investment Technology Insurance Technology Insurance TechnologyLiquidity Venues

We Advised Capsilon

Growth Investmentfrom

We Advised Skyslope

Majority sale to

Real Estate Tech

Real Estate Tech

We Advised Commissions Inc

Acquired by

Real Estate Tech

Real Estate TechWe Advised Market Leader

Acquired by

We Advised Radius

Financing from

Payments

Growth InvestmentFor Blockchain Technology

Financial Advisor

Information Services

Acquired by

We Advised WorkMarket

Financial SaaS

Sold

To

We Advised RGI Shareholders

Insurance Technology

Tender Offer for

Asahi Fire & MarineInsurance Co.

We Advised Asahi (close pending)

Insurance TechnologyWe Advised BlackFin

Sold


To

Selected Recent FinTech Experience

3

Select January & February Financing Transactions Percent Change Select January & February M&A Transactions

Date Company Selected Investors Amount Sub-Sector Subsector LTM 3 Years Date Target Buyer Value Sub-Sector

2/28/18 $110 24% 69% 2/23/18 $460

2/27/18 $100 16% 56% 2/21/18 $1,977

2/12/18 $87 40% 74% 2/9/18 $195

1/22/18 $100 18% 47% 1/30/18 $20,000

1/17/18 $650 26% 68% 1/15/18 $3,897

1/3/18 $35 32% 71% 1/11/18 $5,671

Quarterly Financing Activity ($Bn) 14% 26% Quarterly M&A Activity ($Bn)

27% 47%

45% 81%

15% 53%

40% 73%

Average Deal Size ($MM) Average Deal Size ($MM)S&P 500 18% 34%

$27 Bn | 1,546 DealsLTM Financing Volume Industry Stock Market Performance

$106 Bn | 878 DealsLTM M&A Volume

Aggregate FinTech Market 27% 60%

$9

$6 $4 $4

$9

$5 $7

$4

Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 YTD-18

$18 $24

$14 $23

$13

$32

$17

$37

Q2-16 Q3-16 Q4-16 Q1-17 Q2-17 Q3-17 Q4-17 YTD-18

Real Estate & Mortgage Tech.

Benefits Administration/Payroll


Investment Technology

Trading Technology

Banking & Lending Technology


Financial SaaS

IT & BPO Services

Payments

Liquidity Venues

1

5

1

4

9

1

2

8

9

7

6

5

4

3

10

11

1

5

377408

368

328

369

397244

195201

235

222 216

378

$12.6$23.9$10.8$12.2$16.3$22.1 $18.5

223

$148$58.6$97.9$69.7$123$73.8 $76.2

9

$14.7

272

139

$266

9

4

3

6

3

FINTECH DEAL DASHBOARD

Notes:Source: Pitchbook. CapIq. GCA Deal Database.Market data as of 2/28/18 (YTD-18 includes January and February).(1) Includes private company equity financings.(2) Represents weighted average by market cap. (3) YTD-18 M&A Activity includes Blackstone purchase of Thomson Reuters financial / risk unit for $20Bn.

FinTech is trading at 27% on an LTM basis vs. 18% for the S&P 500. Financing volume YTD ‘18 (Jan & Feb) is already in line with volume during Q1 ’17. M&A volume YTD ‘18 is >2x volume in Q4 ‘17 due to Blackstone’s purchase of Thomson Reuters

(1)

(1)

(2)

(3)

4

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


Benefits Administration/Payroll Financial SaaS



Combined Market Cap: $17218/17 Rev. Growth: 7% 18 EBITDA Margin: 26%


Combined Market Cap: $11418/17 Rev. Growth: 19%18 EBITDA Margin: 20%





Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 2/28/18.

1 2 3

4 5 6

5

FINTECH PUBLIC COMPANY LANDSCAPE (CONT’D)(3)

FinTech sub-sectors and key operating stats ($Bn)

Liquidity Venues PaymentsIT & BPO Services




Notes:Source: CapIq.Revenue growth and EBITDA margins shown are median values for comp group.Market data as of 2/28/18.

7 8 9



Trading Technology


10 11

6

FINTECH STOCK PRICE PERFORMANCE

3 Year Share Price Performance

LTM Share Price Performance

Notes:Source: CapIq. Market data as of 2/28/18.

Payments leads the FinTech pack on both an LTM and three year basis

6) Investment Technology

11) Trading Technology

1) Banking & Lending Technology

2) Benefits Administration/Payroll

3) Financial SaaS 5) Insurance Technology

4) Information Services

7) IT & BPO Services 8) Liquidity Venues 9) Payments 10) Real Estate & Mortgage Technology

(10%)

4%

18%

32%

46%

60%

Feb-17 Apr-17 Jun-17 Aug-17 Oct-17 Dec-17 Feb-18

32.4%39.9%

44.7%

26.4%23.6%

16.2%

14.4%

26.9%

18.2%

15.4%

40.2%

7

FINTECH PUBLIC COMPANY VALUATIONLiquidity Venues and Financial SaaS outperform the FinTech market on both an EV / LTM revenue and EV / NTM revenue basis

Notes:Source: CapIq.Market data as of 2/28/18.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM RevenueEnterprise Value / LTM Revenue

Median NTM Revenue Growth to EV / NTM Revenue MultipleEnterprise Value / NTM Revenue

1

2

3

4

5

678

9

10

11

3.0x 3.0x

4.3x4.3x

3.5x2.9x

4.1x 4.1x








8

FINTECH PUBLIC COMPANY VALUATION (CONT’D)Financial SaaS, Benefits Admin and Insurance Technology outperform on both an EV / LTM EBITDA and EV / NTM EBITDA basis

Notes:Source: CapIq.Market data as of 2/28/18.Lines display median multiples across comp groups for given year.

Enterprise Value / LTM EBITDAEnterprise Value / LTM EBITDA

Median NTM EBITDA Growth to EV / NTM EBITDA MultipleEnterprise Value / NTM EBITDA

11.6x 11.9x

15.5x16.9x

11.1x 10.9x

13.6x15.1x








12

3

4 5

6

78

910

11

9

17.7x

17.7x

18.3x

20.6x

21.6x

22.2x

24.4x

25.5x

26.0x

28.6x

38.3x

0.0x 5.0x 10.0x 15.0x 20.0x 25.0x 30.0x 35.0x 40.0x 45.0x

Investment Technology6

Real Estate & Mort. Tech10

Long-term growth is not necessarily correlated with FinTech public company P/E multiples or PEG ratiosFINTECH PUBLIC COMPANY VALUATION (CONT’D)

Notes: Figures represent medians of sub-sectors.Market data as of 2/28/18.Long-term EPS growth covers last 5 years.

20%

15%

19%

14%

19%

12%

11%

10%

26%

15%

10%

2.0

2.0

2.0

2.1

1.7

1.9

2.1

1.7

0.7

1.4

1.7

2018 P/E Ratio PEG Ratio Long-Term EPS Growth

Banking & Lending Tech1

Benefits Admin/Payroll2

Financial SaaS3

Information Services4

Insurance Technology5

IT & BPO Services7

Liquidity Venues8

Payments9

Trading Technology11

10

SELECTED RECENT GROWTH EQUITY & VC ACTIVITY

Notes: Source: CapIq. Pitchbook.Selected deals from last two calendar months.

Date

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

2/28/18Founders Fund, Google Ventures, Maverick Ventures, Mubadala Investment

Co, New Enterprise Associates, Sun Life FinancialSeries D $110

2/27/18Allianz Global Investors, Mithril Capital Management, Mubadala Investment Co,

Temasek Holdings, Union Square VenturesSeries F $100

2/22/18AngelList, DN Capital, Fabrice Grinda, FJ Labs, FundersClub, International

Finance Corporation, Martin Varsavsky, TheVentureCity, VentechSeries B $22

2/21/18 Power Financial Corporation Series B $51

2/20/18 Lemhi Ventures Series A $60

2/15/18Colchis Capital, Cota Capital, J.P. Morgan Chase & Co., Point72 Ventures,

Santander InnoVentures, USAASeries B $25

2/15/18CNP Assurances, Groupe Duval, NewAlpha, Oddo Private Equity, XAnge Private

EquitySeries C $16

2/13/18Andrew Prozes, Anil Aggarwal, Jonathan Weiner, MassMutual Ventures,

Synchrony FinancialSeries F $23

2/13/18 Zeev Ventures Series C $30

2/13/18 Cherry Ventures, One Peak Partners, Project A Ventures Series B $22

2/12/18Bertelsmann India Investments, Fullerton Financial Holdings, India Quotient,

Mayfield Fund, Saama Capital, Sistema Venture CapitalSeries C $87

2/12/18Breyer Capital, Coatue Management, Entree Capital, Goodwater Capital, Union

Square Ventures, Valar VenturesSeries D $38

2/6/18Bank of America Merrill Lynch, Barclays Bank, BNP Paribas, Chicago Board

Options Exchange, Citigroup, Goldman Sachs Principal Strategic Investments, Series B $28

2/5/18 Westpac Group Series B $20

2/5/18DBJ Capital, Global Brain Corporation, Mizuho Capital, SMBC Venture Capital,

Sony Innovation Fund, SPARX GroupSeries C $41

2/5/18 Amerborgh Series C $31

2/1/18 SBI Group, TD Bank, Westpac Group Series B $23

1/31/18 Endeavor Catalyst, FTV Capital VC $30

1/31/18 New Hope Group, Wacai Series B $92

1/31/18 Salesforce Ventures Series E $51

1/29/18Adams Street Partners, CK Hutchison Holding, Greylock Partners, Spring Lake Equity Partners, Sutter Hill Ventures, Swisscom Ventures, Telstra Ventures

Series C $40

Payments



Payments



Payments




Payments

Payments

Financial SaaS

Payments



Trading Technology




Payments

11

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

Date

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

1/25/18 Makara Capital PE Growth $30

1/25/18 Hard Yaka VC $58

1/24/18 Leapfrog Investments VC $47

1/23/18 CLSA Asia-Pacific Markets, ORIX Series D $70

1/22/18 HarbourVest Partners Series G $100

1/22/18 Comcast Ventures, Fifth Wall Ventures, Plug and Play Ventures Series B $25

1/22/18 Great Hill Partners PE Growth $65

1/19/18 Bain Capital Ventures Series C $55

1/18/18Passport Capital, Canaan Partners, Industry Ventures, Allen and Company, Matrix Partners, Quantum Partners, Tenaya Capital, Western Technology

Series C $50

1/18/18 The Rise Fund, Warburg Pincus Series B $45

1/18/18DCM Ventures, Dentsu Ventures, Draper Nexus Ventures, Goldman Sachs, Line

Corporation, Mitsui & Co., SMBC Venture CapitalSeries A $63

1/18/18Bank of America, Citigroup, Exane BNP Paribas, Goldman Sachs, Jefferies &

Company, Macquarie Group, Morgan Stanley, Royal Bank of Canada, Santander Series B $38

1/18/18CapHorn Invest, Cathay Innovation, Digital Currency Group, Draper Esprit,

FirstMark Capital, GDTRE, Korelya CapitalSeries B $75

1/17/18 IDG Capital, SBI Group Series A $650

1/10/18Canaan Partners, Lightspeed Venture Partners, Nyca Partners, RRE Ventures,

Thomvest VenturesSeries B $30

1/9/18 Vitruvian Partners, Runa Capital, Undisclosed PE Growth $65

1/4/18Benchmark, Greylock Partners, Index Ventures, Social Capital, Spark Capital,

Tiger Global ManagementSeries G $75

1/4/18Danhua Capital, Edison Partners, FinTech Collective, Greenspring Associates,

SURA VenturesSeries B $42

1/4/18 Athyrium Capital Management PE Growth $80

1/3/18 Argentum Group, Bain Capital Ventures, Great Hill Partners Series E $35

Median $45







Payments






Payments







Payments

Notes: Source: CapIq. Pitchbook.Selected deals from last two calendar months.

12

SELECTED RECENT PUBLIC EQUITY AND DEBT FINANCINGS

Notes: Source: CapIq. Pitchbook.Price to Date as of 3/8/17.Selected financings from last calendar month.

Offer

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

2/9/18 Nasdaq: CDLX IPO $70 $13.00 24%

1/23/18 NYSE: PAGS IPO $2,265 $21.50 51%

Median $1,167 $17 37%

Financial SaaS

Payments

Offer

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

2/26/18 General Corporate Purposes BBB- NA $1 3.80%

2/22/18 General Corporate Purposes NA NA $1,598 3.40%

2/20/18 General Corporate Purposes NA NA $200 0.75%

2/14/18 General Corporate Purposes NA Aaa $610 0.63%

1/29/18 General Corporate Purposes BBB- NA $1 4.10%



1/12/18 General Corporate Purposes BBB- Baa2 $411 1.75%

1/12/18 General Corporate Purposes BBB- Baa2 $1,516 1.75%


1/8/18Redemption/Repayment of

Debt SecuritiesNA NA $278 3.75%

Median $411

Security Rating at Issuance



Liquidity Venues

Liquidity Venues

Payments



Payments

Payments


Liquidity Venues

13

SELECTED RECENT M&A ACTIVITY

Notes: Source: CapIq. Pitchbook.Selected deals >$30MM.

Date Enterprise EV / Revenue EV / EBITDA

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

2/27/2018 $370 NA NA

2/23/2018 $460 2.4x 9.6x

2/23/2018 $400 NA NA

2/21/2018 $1,977 3.8x 21.5x

2/9/2018 $195 4.3x NA

2/7/2018 Lending Business $395 NA NA

2/2/2018 $500 9.4x NA

1/30/2018 F&R Bus. $20,000 3.3x 10.4x

1/29/2018 $830 NA NA

1/29/2018 $420 NA NA

1/29/2018 PR and Dig. Media $335 NA NA

1/25/2018 Brokerage Accts $170 NA NA

1/17/2018 $190 2.2x 5.1x

1/16/2018 $201 NA NA

1/15/2018 $3,897 1.9x 25.9x

1/11/2018 $5,671 2.6x 11.2x

1/10/2018 $145 1.8x NA

1/8/2018 $100 NA NA

Median 2.6x 10.8x



Payments

Liquidity Venues

Trading Technology

Payments

Financial SaaS

Payments


Payments



Financial SaaS



Financial SaaS


Financial SaaS

APPENDIX

15

A leading independent, global investment bankGCA OVERVIEW

San Francisco | New York | Tokyo | Delhi | Frankfurt | Ho Chi Minh | London | Manchester | Milan | Mumbai | Munich | Nagoya | Osaka | Shanghai | Singapore | Taipei | Tel Aviv | Zurich

GLOBAL

Global reach with 18 offices in 10 key markets, with deep local roots to ensure hands-on support for our clients

TECH FOCUS

Leading technology advisor with strong networks in key tech hubs globally

GROWTHCOMPANIES

Expert advisor for cross-border transactions – ~33% of our deals involve cross-border outcomes

CROSS-BORDER

Strong expertise in advising growth companies and leading corporations in capital raising and M&A

400+

Over 400 M&A bankers and growth company experts in the U.S., Europe, and Asia

350+

Over 350 deals closed over the last 3 years

16

CASE STUDY: SALE OF FINANZEN GROUP TO ELI GLOBAL

GCA advised the shareholders of FinTech business Finanzen Group on the sale to Eli Global

GCA Value-Add

• GCA acted as exclusive financial adviser to BlackFin Capital Partners and the founders on the sale of Finanzen Group to Eli Global

• GCA advised on all aspects of the competitive auction process, coordinating multiple highly interested strategic and financial investors

• GCA maintained a competitive situation until the end of the due diligence – Eli Global evolved as the most attractive buyer and future partner due to a global footprint in the insurance sector

• Eli Global is a federation of over 100 independent technology, insurance, financial services and healthcare portfolio companies across 18 countries

Background

• Headquartered in Berlin, Germany, Finanzen Group (“Finanzen” or the “Company”) connects lead generators, such as online price comparison sites, with lead buyers, such as independent financial advisors and insurance agents

• Finanzen’s online marketplace allows leads to be traded in real-time, bridging the gap between online insurance consumers and the offline sales organizations of European carriers and brokers

• Additionally, the company acts as an online broker for certain insurance products

Transaction Rationale / Details

• Finanzen and its majority shareholder, BlackFin Capital Partners, sought a strategic partner with an international footprint and relevant InsurTech experience to accelerate the company’s growth

• Company shareholders aimed to realize a valuation reflecting Finanzen‘s strong growth, significant market potential and unique competitive positioning

Transaction DateFebruary 2018

Deal TypeM&A

IndustryInsurTech

To

Sold

GCA Advised BlackFin and the founders

17

Insurance Segment

Insurance Value Chain

P&C

Products, Pricing & Underwriting

Distribution & CustomerEngagement

Transaction DateJanuary 2018

Deal TypeM&A

IndustryInsurTech

CASE STUDY: RAKUTEN MAKES TENDER OFFER FOR ASAHI FIRE & MARINE INSURANCE

GCA acted as exclusive financial advisor to Asahi

GCA Value-Add

• GCA was retained as Asahi’s sell-side advisor in the execution of the transaction

› Positioned Asahi as the right opportunity with which Rakuten could deepen its ecosystem

› Managed a tight transaction timeline while maintaining confidentiality throughout the process

› Supported Asahi throughout deal structuring and negotiations

Background

• Founded in 1951, Asahi is a nonlife insurance company operating in Japan. Asahi Fire also operates a nonlife insurance agency business through its wholly owned subsidiary, Mirai no Hoken Co

• Founded in Tokyo in 1997 as an online marketplace, Rakuten has expanded its unique ecosystem to offer services in e-commerce, fintech, digital content, and communications to more than 1 billion members around the world


• Asahi can build on its solid customer base by incorporating the members of Rakuten and its affiliated stores as new contractors

• Asahi can efficiently and effectively sell insurance products through multiple channels by leveraging Rakuten’s internet sales capabilities

• The acquisition offers tie-ups with companies of the Rakuten Group and enables innovations in Asahi’s traditional insurance products with its internet-based technology

• Since Asahi has many injury insurance practitioners familiar with the target audience, both companies realize synergy through exchange between its human resources and insurance-related businesses, providing a unique and attractive nonlife insurance product lineup

Asahi Fire & Marine Insurance Co.

Tender Offer for

~$412 MM

GCA Advised Asahi (close pending)

18


Deal TypeM&A

IndustryHuman Capital Management,

Software, Financial Technology


Deal TypeM&A

IndustryHCM Software

CASE STUDY: ACQUISITION OF WORKMARKET BY ADP (NASDAQ: ADP)

GCA Acted as Exclusive Financial Advisor to WorkMarket

GCA Value-Add

• GCA was retained as sell-side advisor to provide support in the preparation and execution of the transaction to the Company and its shareholders:

• Channeled strong inbound interest from numerous strategic buyers and financial sponsors

• Managed a tight transaction timeline while maintaining confidentiality throughout the process

• Coordinated due diligence work streams

Background

• WorkMarket: High-growth SaaS company that enables enterprises to procure, manage and compensate labor for projects from unified (full-time and contingent) talent pools

• On January 22, 2018, WorkMarket Inc. (WorkMarket) announced that it has been acquired by Automatic Data Processing, Inc. (ADP) in an all-cash transaction

• The transaction closed on January 19, 2018

• Terms of the transaction have not been disclosed


• Provides ADP with a leading SaaS-based solution for managing the modern workforce, meeting businesses wherever they are in their digital transformation

• Extends ADP’s current intra-enterprise offering – a game changer in unifying the labor mosaic of full-time workers, freelancers, suppliers and vendors

• Gives ADP a single end-to-end plug-and-play system for finding, managing and compensating a contingent labor force

• Enables ADP to augment existing vendor management, payroll, expense management and internally-facing HR systems of record

Acquired by

GCA Advised WorkMarket

19

CASE STUDY: SALE OF RGI TO CORSAIR CAPITAL

GCA acted as exclusive financial advisor to the shareholders of RGI

GCA Value-Add

• GCA was selected as exclusive sell-side financial advisor due to our extensive experience in advising growing and profitable software companies, our expertise within the insurance space, and our broad network of contacts among global tech-focused private equity firms

Background

• RGI is the European market leader in the insurance software vertical, with 200+ installations serving 100+ clients

• RGI offers a state-of-the-art policy administration software suite with multi-country capabilities, suitable for all-tier insurers across verticals


• Shareholders decided to sell RGI after having successfully completed the acquisition of France-based Kapia Solutions (September 2016), which provided RGI an integrated platform to cover life insurance clients

• RGI shareholders retained GCA to lead a structured sale process

• GCA ran a highly competitive process, approaching a targeted group of tech-focused global financial investors and a limited number of strategic buyers

• GCA supported RGI throughout all transaction phases, setting up all marketing documentation, coordinating business plan and VDD reports preparation, managing an in-depth due diligence process, helping with legal / financing documents, and handling SPA and management incentive plan negotiations

• Corsair Capital emerged as the fastest and most committed bidder

Sold

P&C

Data & Analytics

Policy Admin, Claims & Back Office

Insurance Segment


To

GCA Advised RGI Shareholders

Life Health


Deal TypeM&A

IndustryInsurTech

20

CASE STUDY: SALE OF CONTROLEXPERT TO GENERAL ATLANTIC

GCA acted as exclusive financial advisor to the shareholders of ControlExpert

GCA Value-Add

• GCA was retained as sell-side advisor to provide support in the preparation and execution of the transaction to the Company and its shareholders:

› Channeled strong inbound interest from numerous strategic buyers and financial sponsors

› Managed a tight transaction timeline while maintaining confidentiality throughout the process

› Coordinated due diligence work streams

Background

• ControlExpert is a disruptive technology service provider to the auto insurance industry and Europe’s largest InsurTech company

• The Company serves a broad blue-chip customer base of more than 100 enterprise accounts, including ~90% of all German auto insurances, as well as major leasing/fleet management companies and automotive OEMs

• ControlExpert’s cutting-edge technology allows more efficient organization of a traditionally very lengthy, costly and prone-to-fraud claims handling process


• ControlExpert sought a strategic partner with an international footprint and relevant industry experience to accelerate its future growth in existing and new markets

• The shareholders were aiming to realize a valuation which reflects ControlExpert‘s strong growth, significant market potential and competitive positioning

• General Atlantic emerged as the preferred potential partner and was able to move swiftly during the due diligence phase

• The transaction was signed in May 2017 and closed June 2017

Strategic Investment

GCA Advised ControlExpert

Insurance Segment


P&C

Data & Analytics

Policy Admin, Claims & Back Office

Transaction DateMay 2017

Deal TypeStrategic Investment

IndustryInsurTech

21

Banking & Lending TechnologyIntuit Inc. $166.86 $42,735 $43,112 16% 1.9 12% 10% 8% 10% 37% 7.9x 7.2x 21.6x 19.7x 36.7x 30.4xFidelity National Information Services, Inc. $97.18 $32,184 $40,282 13% 1.5 (3%) (6%) 4% 2% 37% 4.4x 4.7x 13.2x 12.8x 22.1x 18.7xFiserv, Inc. $143.39 $29,626 $34,201 12% 1.8 3% 4% 5% 4% 36% 6.0x 5.8x 16.9x 16.2x 28.2x 23.0xFirst Data Corporation $15.62 $14,468 $33,168 11% 1.6 4% 5% 5% 7% 26% 2.8x 2.6x 10.9x 10.1x 19.5x 17.0xWolters Kluwer N.V. $50.89 $14,260 $16,731 8% 2.3 17% (1%) 21% (1%) 27% 3.1x 3.2x 11.6x 11.7x 18.8x 17.7xJack Henry & Associates, Inc. $117.30 $9,063 $9,105 11% 2.9 5% 7% 1% 3% 34% 6.2x 5.8x 17.6x 17.1x 36.5x 31.4xBlack Knight, Inc. $47.65 $7,154 $8,577 15% 1.8 2% 6% 9% 6% 48% 8.1x 7.7x 16.9x 15.9x 34.7x 26.8xTemenos Group AG $117.49 $8,258 $8,531 19% 2.1 15% 16% 14% 24% 38% 11.7x 10.1x 33.2x 26.9x 47.5x 39.9xACI Worldwide, Inc. $23.65 $2,741 $3,359 12% 2.8 1% 2% 46% 5% 25% 3.3x 3.2x 13.3x 12.7x 38.4x 35.0xEll ie Mae, Inc. $88.67 $3,035 $2,794 20% 2.6 15% 21% 6% 9% 26% 6.8x 5.6x 23.4x 21.4x 57.4x 51.2xCoupa Software Incorporated $44.60 $2,455 $2,236 NA NA 36% 24% NA NA NM 12.3x 9.9x NM NM NM NMQ2 Holdings, Inc. $45.55 $1,914 $1,815 20% NA 29% 21% NA NM 9% 9.4x 7.7x NM NM NM NMBottomline Technologies (de), Inc. $37.98 $1,545 $1,621 16% 2.1 6% 6% 17% 2% 22% 4.5x 4.2x 19.0x 18.7x 35.5x 33.6xLendingClub Corporation $3.15 $1,315 $1,258 53% 0.7 11% 28% NA 91% 12% 2.3x 1.8x 29.3x 15.3x NM 35.0xOn Deck Capital, Inc. $5.19 $383 $1,004 NA NA 20% 10% NA NM 9% 2.9x 2.6x NM 30.3x NM 20.8xElevate Credit, Inc. $7.14 $299 $771 NA NA 17% 22% 58% 66% 19% 1.1x 0.9x 8.1x 4.8x NM 21.6xPerformant Financial Corporation $2.67 $136 $155 NA NA (9%) (4%) NA 19% 1% 1.2x 1.2x NM NM NM NM

Median 15% 2.0 11% 7% 9% 7% 26% 4.5x 4.7x 16.9x 16.1x 35.5x 28.6x

Benefits Administration/PayrollAutomatic Data Processing, Inc. $115.32 $51,118 $51,344 13% 2.0 6% 8% (3%) 12% 21% 4.0x 3.7x 19.8x 17.7x 30.5x 26.0xPaychex, Inc. $65.13 $23,394 $23,189 8% 3.0 6% 7% 8% 7% 44% 7.2x 6.7x 16.4x 15.3x 28.3x 24.5xThe Ultimate Software Group, Inc. $238.46 $7,291 $7,135 26% 2.0 20% 19% 16% 28% 25% 7.6x 6.4x 33.2x 26.1x 66.0x 52.6xPaycom Software, Inc. $98.92 $5,854 $5,844 26% 2.4 31% 26% 41% 25% 31% 13.5x 10.8x 44.0x 35.1x 78.5x 64.1xTriNet Group, Inc. $47.17 $3,305 $3,392 20% 1.9 7% 10% (15%) 18% 6% 1.0x 0.9x 17.9x 15.2x 49.1x 38.3xHealthEquity, Inc. $57.58 $3,494 $3,268 34% 1.8 28% 22% 31% 28% 38% 14.4x 11.7x 39.8x 31.1x 87.0x 61.0xInsperity, Inc. $65.30 $2,709 $2,457 17% 1.3 12% 13% 23% 13% 5% 0.7x 0.7x 14.1x 12.5x 27.7x 21.5xPaylocity Holding Corporation $46.77 $2,460 $2,349 27% 2.0 30% 23% 98% 32% 20% 7.8x 6.3x 41.8x 31.6x 69.8x 55.0xWageWorks, Inc. $52.45 $2,079 $1,431 15% 1.7 32% 9% 35% 15% 32% 3.0x 2.7x 9.8x 8.5x 29.5x 25.8xBenefitfocus, Inc. $24.20 $757 $822 20% NA 10% 8% NA 46% 10% 3.2x 3.0x 45.2x 30.9x NM NMCastlight Health, Inc. $3.55 $475 $387 25% NA 28% 24% NA NA NM 3.0x 2.4x NM NM NM NM

Median 20% 2.0 20% 13% 23% 22% 23% 4.0x 3.7x 26.5x 21.9x 49.1x 38.3x

PUBLIC COMPANY VALUATIONS

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Notes: Source: CapIq. Pitchbook.Multiples based on CapIq Consensus Estimates. Multiples <0 and >100 considered NM.

($MM, except per share data)Stock EPS Operating Metrics Trading MetricsPrice Equity Enterprise Long Term Revenue Growth EBITDA Growth EBITDA Margin EV / Revenue EV / EBITDA Price / EPS

Company 2/28/18 Value Value Growth PEG 17E/16A 18E/17E 17E/16A 18E/17E 18E 17E 18E 17E 18E 17E 18E

22

Financial SaaSIntuit Inc. $166.86 $42,735 $43,112 16% 1.9 12% 10% 8% 10% 37% 7.9x 7.2x 21.6x 19.7x 36.7x 30.4xWorkday, Inc. $126.67 $26,601 $24,824 35% 3.4 35% 25% 91% 24% 16% 11.6x 9.3x 74.2x 59.9x 130.6x 118.4xSS&C Technologies Holdings, Inc. $49.52 $10,228 $12,209 11% 2.0 10% 6% 13% 9% 43% 7.3x 6.9x 17.6x 16.1x 25.7x 21.8xThe Sage Group plc $9.56 $10,346 $11,335 10% 2.1 19% 12% 16% 10% 30% 4.9x 4.4x 16.3x 14.8x 23.6x 20.4xPaycom Software, Inc. $98.92 $5,854 $5,844 26% 2.4 31% 26% 41% 25% 31% 13.5x 10.8x 44.0x 35.1x 78.5x 64.1xXero Limited $24.76 $3,400 $3,341 NA NA 33% 48% NA NA 15% 13.2x 8.9x NM 61.2x NM NMEnvestnet, Inc. $55.10 $2,464 $2,644 15% 2.0 18% 20% 22% 26% 19% 3.9x 3.2x 21.7x 17.3x 42.3x 30.2xPaylocity Holding Corporation $46.77 $2,460 $2,349 27% 2.0 30% 23% 98% 32% 20% 7.8x 6.3x 41.8x 31.6x 69.8x 55.0xCoupa Software Incorporated $44.60 $2,455 $2,236 NA NA 36% 23% NA NA NM 12.3x 10.0x NM NM NM NMFinancial Engines, Inc. $33.50 $2,113 $1,888 15% 1.2 14% 8% 18% 8% 33% 3.9x 3.6x 11.9x 11.0x 24.3x 18.3xAlfa Financial Software Holdings PLC $6.35 $1,904 $1,862 NA NA 18% 17% 15% 18% 48% 15.6x 13.3x 32.9x 27.9x 0.5x 0.4xQ2 Holdings, Inc. $45.55 $1,914 $1,815 20% NA 29% 21% NA NA 9% 9.4x 7.7x NM NM NM NMBlucora, Inc. $23.30 $1,080 $1,358 19% 0.8 10% 8% 6% 7% 20% 2.7x 2.5x 13.6x 12.7x 16.8x 14.1xBenefitfocus, Inc. $24.20 $757 $822 20% NA 10% 8% NA 46% 10% 3.2x 3.0x 45.2x 30.9x NM NM

Median 19% 2.0 19% 19% 17% 18% 20% 7.9x 7.1x 21.7x 23.8x 31.2x 26.0x

Information ServicesS&P Global Inc. $191.80 $48,698 $49,476 15% 1.5 6% 8% 14% 11% 49% 8.3x 7.7x 17.2x 15.5x 28.8x 22.5xRELX PLC $20.60 $40,992 $47,446 7% 2.4 18% 3% 19% 4% 35% 4.7x 4.6x 13.6x 13.1x 18.9x 17.8xMoody's Corporation $166.88 $31,891 $36,248 12% 1.8 14% 14% 19% 17% 49% 8.8x 7.7x 18.6x 15.8x 27.9x 21.6xThomson Reuters Corporation $39.47 $28,005 $34,338 8% 1.9 1% 2% 8% 2% 30% 3.0x 3.0x 10.1x 9.9x 16.1x 15.4xExperian plc $21.47 $19,463 $22,928 9% 2.3 (5%) 12% (1%) 8% 34% 5.3x 4.7x 15.0x 13.9x 23.9x 20.5xIHS Markit Ltd. $47.05 $18,796 $22,856 13% 1.6 30% 8% 40% 10% 40% 6.4x 5.9x 16.5x 15.0x 22.9x 20.8xVerisk Analytics, Inc. $102.19 $16,863 $19,726 12% 2.1 7% 11% 4% 10% 49% 9.3x 8.4x 18.9x 17.2x 32.1x 25.5xNielsen Holdings plc $32.63 $11,637 $19,422 8% 1.6 4% 4% 5% NA 30% 3.0x 2.8x 9.5x 9.5x 12.4x 12.4xWolters Kluwer N.V. $50.89 $14,260 $16,731 8% 2.3 17% (1%) 21% NA 27% 3.1x 3.2x 11.6x 11.7x 18.8x 17.7xEquifax Inc. $113.00 $13,569 $15,937 9% 2.0 6% 3% 9% NA 36% 4.8x 4.6x 12.9x 13.0x 19.1x 18.8xMSCI Inc. $141.52 $12,729 $13,918 14% 1.9 11% 13% 16% 19% 54% 10.9x 9.7x 21.1x 17.7x 36.9x 26.4xGartner, Inc. $113.41 $10,301 $13,041 16% 1.8 35% 26% 53% 11% 19% 4.0x 3.1x 18.7x 16.8x 32.8x 29.1xTransUnion $57.07 $10,478 $12,805 12% 2.1 12% 11% 17% 12% 39% 6.7x 6.0x 17.2x 15.4x 30.6x 24.9xInforma plc $9.59 $7,902 $9,758 4% 3.4 41% 3% 44% 5% 34% 4.2x 4.0x 12.4x 11.8x 15.4x 14.6xFactSet Research Systems Inc. $203.18 $7,929 $8,250 11% 2.1 11% 8% 14% 0% 34% 6.5x 6.0x 17.6x 17.6x 27.0x 23.8xNews Corporation $16.13 $9,404 $7,829 11% 2.7 1% 1% 0% 3% 12% 0.9x 0.9x 8.4x 8.1x 36.6x 28.3xThe Dun & Bradstreet Corporation $125.04 $4,626 $5,862 8% 1.9 3% 1% 2% 4% 29% 3.3x 3.3x 11.6x 11.2x 17.4x 15.3xFair Isaac Corporation $169.94 $5,111 $5,680 16% 1.7 5% 7% 10% 21% 27% 6.0x 5.6x 24.9x 20.6x 34.3x 26.8xCoreLogic, Inc. $45.50 $3,708 $5,342 8% 2.2 (5%) (0%) (6%) 2% 26% 2.9x 2.9x 11.4x 11.2x 19.5x 17.3xMorningstar, Inc. $93.45 $3,974 $3,801 NA NA 7% 4% (7%) 12% 29% 4.4x 4.2x 16.3x 14.5x 39.8x 32.9xAcxiom Corporation $27.37 $2,167 $2,219 13% 4.2 6% 12% 15% 18% 21% 2.4x 2.1x 11.7x 9.9x NM 52.6xEuromoney Institutional Investor PLC $16.56 $1,777 $1,998 NA NA 14% 1% 17% 2% 27% 3.5x 3.4x 13.0x 12.6x 16.1x 15.7xNational Research Corporation $50.10 $1,228 $1,194 NA NA 8% 8% 10% 10% 33% 10.1x 9.3x 30.8x 27.9x 56.9x 52.7xcomScore, Inc. $22.00 $1,260 $1,146 NA NA 11% 11% 35% 32% 16% 2.4x 2.2x 17.6x 13.3x 11.2x 8.9xForrester Research, Inc. $40.50 $728 $594 14% 2.1 2% 7% (3%) 5% 11% 1.8x 1.7x 15.5x 14.8x 33.5x 28.7x

Median 11% 2.1 7% 7% 14% 10% 30% 4.4x 4.2x 15.5x 13.9x 25.4x 21.6x


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Insurance TechnologyVerisk Analytics, Inc. $102.19 $16,863 $19,726 12% 2.1 7% 11% 4% 10% 49% 9.3x 8.4x 18.9x 17.2x 32.1x 25.5xGuidewire Software, Inc. $80.32 $6,170 $5,664 8% 10.5 26% 19% 30% 11% 20% 10.0x 8.4x 47.8x 43.0x 90.9x 84.2xHealthEquity, Inc. $57.58 $3,494 $3,268 34% 1.8 28% 22% 31% 28% 38% 14.4x 11.7x 39.8x 31.1x 87.0x 61.0xEbix, Inc. $83.95 $2,641 $2,960 15% 1.5 19% 18% 10% 25% 37% 8.3x 7.1x 24.1x 19.3x 26.8x 23.1xCorVel Corporation $48.95 $924 $871 NA NA 3% NA 4% NA NA 1.6x NM 12.2x NM 29.1x NMBenefitfocus, Inc. $24.20 $757 $822 20% NA 10% 8% NA 46% 10% 3.2x 3.0x 45.2x 30.9x NM NMCrawford & Company $8.97 $500 $672 NA NA 2% 3% (6%) 21% 12% 0.6x 0.6x 5.7x 4.7x 11.5x 10.9xSapiens International Corporation N.V. $9.71 $483 $490 5% 5.0 26% 10% (14%) 60% 15% 1.8x 1.6x 17.4x 10.9x NM 24.9xeHealth, Inc. $16.29 $303 $263 NA NA (9%) 29% NM NA 3% 1.5x 1.2x NM 34.6x NM NMMajesco $5.40 $197 $199 NA NA (0%) 19% NA NM 8% 1.6x 1.4x 37.2x 16.5x NM 54.0xSymbility Solutions Inc. $0.30 $72 $67 NA NA 19% 14% NM 14% 6% 1.6x 1.4x 25.9x 22.6x NM NM

Median 14% 2.1 10% 16% 4% 23% 14% 1.8x 2.3x 25.0x 20.9x 30.6x 25.5x

Investment TechnologyThe Charles Schwab Corporation $53.02 $71,390 $61,248 26% 0.9 15% 16% 20% 24% 50% 7.1x 6.1x 15.1x 12.2x 32.7x 24.7xNorthern Trust Corporation $105.87 $23,961 $25,272 16% 1.1 8% 10% NA NA NA 4.7x 4.3x NM NM 22.3x 17.3xTD Ameritrade Holding Corporation $57.50 $32,624 $22,930 32% 0.6 19% 33% 18% 23% 41% 5.7x 4.3x 12.9x 10.5x 31.4x 18.1xBroadridge Financial Solutions, Inc. $100.38 $11,710 $12,566 10% 2.4 22% 2% 20% NA 19% 3.0x 2.9x 15.1x 15.1x 28.7x 24.2xSS&C Technologies Holdings, Inc. $49.52 $10,228 $12,209 11% 2.0 10% 6% 13% 9% 43% 7.3x 6.9x 17.6x 16.1x 25.7x 21.8xSEI Investments Co. $72.83 $11,455 $10,719 12% 1.9 8% 11% 28% 18% 40% 7.1x 6.4x 18.7x 15.8x 31.0x 22.5xComputershare Limited $13.91 $7,550 $8,658 12% 1.8 6% 3% 8% 13% 29% 4.0x 3.9x 15.1x 13.3x 24.4x 20.9xDST Systems, Inc. $83.17 $4,934 $5,474 10% 2.0 41% 4% 14% 12% 22% 2.6x 2.5x 12.6x 11.3x 27.0x 20.2xEnvestnet, Inc. $55.10 $2,464 $2,644 15% 2.0 18% 20% 22% 26% 19% 3.9x 3.2x 21.7x 17.3x 42.3x 30.2xSimCorp A/S $62.87 $2,477 $2,476 12% 2.2 30% 13% 40% 20% 28% 6.1x 5.4x 23.4x 19.5x 33.1x 27.3xFinancial Engines, Inc. $33.50 $2,113 $1,888 15% 1.2 14% 8% 18% 8% 33% 3.9x 3.6x 11.9x 11.0x 24.3x 18.3xFidessa group plc $51.74 $1,994 $1,869 8% 4.4 16% 1% (1%) NA 23% 3.9x 3.9x 17.2x 17.3x 41.7x 36.9xEquiniti Group plc $3.97 $1,446 $1,620 NA NA 14% 25% 16% 26% 25% 3.0x 2.4x 12.2x 9.7x 19.4x 17.0xIRESS Limited $8.09 $1,372 $1,500 8% 3.1 18% 9% 9% 12% 28% 4.5x 4.1x 16.9x 15.1x 25.0x 23.2xFirst Derivatives plc $52.43 $1,344 $1,361 NA NA 31% 17% 24% 15% 18% 5.8x 5.0x 32.2x 27.9x 62.0x 50.4xBlucora, Inc. $23.30 $1,080 $1,358 19% 0.8 10% 8% 6% 7% 20% 2.7x 2.5x 13.6x 12.7x 16.8x 14.1xSanne Group plc $8.90 $1,252 $1,275 NA NA NM 22% 70% 19% 35% 8.3x 6.8x 22.9x 19.2x 28.0x 25.0xStatPro Group plc $2.48 $163 $187 NA NA 43% 19% 49% 30% 16% 2.8x 2.4x 19.9x 15.3x 37.0x 25.3xThe Bank of New York Mellon Corporation $57.03 $57,586 ($13,276) 8% 1.9 3% 4% NA NA NA NM NM NM NM 16.1x 14.1xState Street Corporation $106.15 $39,026 ($13,316) 17% 0.8 8% 5% NA NA NA NM NM NM NM 17.0x 13.9x

Median 12% 1.9 15% 9% 18% 18% 28% 4.3x 4.0x 16.9x 15.1x 27.5x 22.2x


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IT & BPO ServicesInternational Business Machines Corporation $155.83 $143,546 $177,822 (0%) NM (2%) 2% 0% 2% 24% 2.3x 2.2x 9.3x 9.1x 11.3x 11.3xAccenture plc $161.01 $99,290 $95,633 10% 2.4 7% 9% 4% 15% 17% 2.7x 2.5x 16.3x 14.2x 26.9x 24.0xTata Consultancy Services Limited $46.53 $89,076 $83,359 11% 1.9 10% 5% 6% 5% 26% 4.4x 4.2x 16.6x 15.9x 22.6x 21.2xCognizant Technology Solutions Corporation $82.02 $48,232 $44,049 15% 1.2 10% 10% 9% 19% 21% 3.0x 2.7x 15.3x 12.9x 22.1x 18.0xInfosys Limited $17.98 $39,071 $35,456 9% 1.9 9% 3% 7% 1% 26% 3.3x 3.2x 12.2x 12.0x 18.1x 17.2xDXC Technology Company $102.54 $29,294 $34,908 8% 1.4 NM 20% NM 29% 21% 1.7x 1.4x 8.9x 6.9x 15.4x 11.6xCapgemini SE $125.70 $20,481 $20,481 7% 2.5 16% 3% 17% 3% 14% 1.3x 1.3x 9.5x 9.3x 17.6x 16.9xHCL Technologies Limited $14.42 $20,070 $19,320 12% 1.2 19% 4% 15% 6% 23% 2.4x 2.4x 11.0x 10.4x 14.5x 14.8xNTT Data Corporation $10.42 $14,614 $17,985 8% 2.7 30% 8% 18% 11% 15% 1.0x 0.9x 6.7x 6.1x 27.5x 22.5xCGI Group Inc. $58.55 $16,608 $17,938 10% 1.8 10% 3% 8% 4% 18% 2.1x 2.0x 11.3x 10.9x 19.7x 17.6xWipro Limited $4.49 $20,198 $17,734 9% 1.7 6% NM 10% (3%) 21% 2.1x 2.1x 9.7x 10.0x 15.9x 15.5xAtos SE $132.48 $13,925 $13,557 7% 1.8 24% 1% 38% 2% 14% 0.9x 0.9x 6.4x 6.3x 13.2x 12.4xNomura Research Institute, Ltd. $45.16 $10,149 $9,631 9% 2.6 13% 14% 9% 13% 20% 2.4x 2.1x 11.7x 10.4x 26.7x 23.5xTech Mahindra Limited $9.39 $9,201 $8,046 11% 1.4 13% 5% (1%) 24% 16% 1.7x 1.6x 12.5x 10.1x 17.7x 15.3xGenpact Limited $31.37 $6,049 $6,760 10% 1.8 6% 9% 7% 10% 17% 2.5x 2.3x 14.9x 13.5x 19.6x 18.1xEPAM Systems, Inc. $113.12 $6,000 $5,442 19% 1.5 25% 25% 23% 25% 18% 3.8x 3.0x 21.3x 17.0x 33.1x 27.7xConduent Incorporated $18.90 $3,977 $5,380 NA NA (6%) (3%) 5% 9% 13% 0.9x 0.9x 8.1x 7.4x 23.3x 17.5xCapita plc $2.43 $1,618 $4,487 (0%) NM (6%) (1%) (7%) NM 10% 0.8x 0.8x 6.1x 7.5x 3.9x 6.0xSyntel, Inc. $26.85 $2,228 $2,464 8% 1.9 (7%) 4% (18%) 3% 25% 2.7x 2.6x 10.9x 10.6x 14.4x 14.4xPresidio, Inc. $14.62 $1,344 $2,207 7% 1.5 NA 4% NA (2%) 8% 0.8x 0.7x 9.2x 9.4x 11.5x 10.3xMphasiS Limited $13.16 $2,544 $2,160 7% 2.7 9% 9% (5%) 15% 16% 2.2x 2.0x 14.2x 12.4x 21.7x 18.0xWNS (Holdings) Limited $45.00 $2,264 $2,159 14% 2.2 23% 13% 16% 39% 23% 3.1x 2.8x 17.0x 12.2x 48.4x 29.6xMindtree Limited $12.49 $2,047 $1,950 14% 1.7 8% 10% (10%) 29% 14% 2.3x 2.1x 19.1x 14.8x 29.3x 23.3xGlobant S.A. $52.08 $1,833 $1,778 NA NA 26% 23% (0%) 32% 17% 4.4x 3.5x 27.3x 20.8x 40.0x 32.8xExlService Holdings, Inc. $57.02 $1,950 $1,746 15% 1.3 11% 11% 10% 15% 18% 2.3x 2.1x 13.4x 11.7x 21.7x 20.6xHexaware Technologies Limited $5.31 $1,575 $1,491 11% 1.6 19% 10% 24% 8% 17% 2.4x 2.2x 14.2x 13.2x 20.1x 18.3xLuxoft Holding, Inc. $43.15 $1,459 $1,390 NA NA 17% 12% 2% 13% 15% 1.6x 1.4x 10.4x 9.2x 15.6x 14.2xVirtusa Corporation $47.72 $1,404 $1,242 21% 1.1 19% 18% 82% 42% 9% 1.3x 1.1x 18.2x 12.8x 32.3x 23.2xPersistent Systems Limited $13.11 $1,048 $915 14% 1.3 14% 10% 14% 17% 17% 1.9x 1.8x 12.3x 10.5x 20.6x 17.8xPerficient, Inc. $19.47 $680 $728 NA NA (7%) 6% 9% 14% 17% 1.6x 1.5x 10.4x 9.2x 16.1x 13.6x

Median 10% 1.7 10% 9% 9% 13% 17% 2.2x 2.1x 11.9x 10.5x 19.9x 17.7x



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Liquidity VenuesCME Group Inc. $166.16 $56,543 $56,783 15% 1.7 1% 10% (1%) 13% 71% 15.6x 14.3x 22.5x 20.0x 34.9x 26.0xIntercontinental Exchange, Inc. $73.08 $42,554 $48,103 12% 1.8 3% 6% 3% 7% 65% 10.4x 9.8x 16.3x 15.2x 24.8x 20.6xHong Kong Exchanges and Clearing Limited $36.29 $44,940 $42,439 8% 4.7 16% 20% 23% 26% 77% 25.5x 21.2x 34.9x 27.6x 47.1x 36.1xDeutsche Börse Aktiengesellschaft $133.64 $24,944 $25,234 12% 1.7 17% 10% 19% 14% 60% 8.5x 7.8x 14.9x 13.0x 24.3x 20.6xLondon Stock Exchange Group plc $55.57 $19,248 $20,060 16% 1.5 34% 14% 37% 18% 53% 8.0x 7.0x 15.5x 13.2x 28.0x 23.0xNasdaq, Inc. $80.75 $13,450 $17,205 10% 1.7 6% 5% 9% 6% 32% 4.4x 4.2x 13.8x 13.1x 19.2x 16.3xB3 S.A. - Brasil , Bolsa, Balcão $7.90 $16,099 $16,080 10% 0.7 9% 10% (4%) 51% 70% 4.1x 3.7x 8.0x 5.3x 8.7x 7.4xCboe Global Markets, Inc. $112.01 $12,624 $13,671 22% 1.1 76% 13% NM 19% 70% 13.7x 12.1x 20.6x 17.4x 32.7x 23.8xASX Limited $45.51 $8,808 $7,727 5% 4.4 13% 5% 12% 4% 76% 12.5x 11.9x 16.4x 15.7x 25.5x 23.9xMarketAxess Holdings Inc. $202.40 $7,616 $7,358 NA NA 7% 15% 5% 16% 56% 18.6x 16.1x 33.5x 28.8x 52.0x 42.7xSingapore Exchange Limited $5.71 $6,107 $5,551 9% 2.5 12% 4% 14% 3% 57% 9.0x 8.7x 15.6x 15.1x 23.1x 21.8xEuronext N.V. $69.96 $4,862 $4,834 8% 2.2 23% 14% 20% 13% 55% 7.5x 6.6x 13.4x 11.9x 20.0x 17.9xTMX Group Limited $59.88 $3,317 $4,208 NA NA 4% 9% 10% 16% 57% 7.3x 6.7x 13.6x 11.7x 16.6x 14.5xBolsas y Mercados Españoles, Sociedad Holding de $33.87 $2,816 $2,466 2% 9.3 13% 2% 11% 2% 66% 6.4x 6.3x 9.7x 9.5x 15.3x 15.0xBursa Malaysia Berhad $2.88 $1,549 $1,446 NA NA 20% 10% 24% 10% 60% 10.7x 9.7x 17.7x 16.2x 28.2x 25.3xJSE Limited $17.33 $1,482 $1,290 5% 3.6 4% 22% (4%) 70% 59% 7.3x 6.0x 17.3x 10.1x 23.7x 16.5xBolsa Mexicana de Valores, S.A.B. de C.V. $1.85 $1,100 $977 15% 1.1 16% 13% 22% 11% 55% 6.1x 5.4x 10.9x 9.9x 19.3x 16.4xGielda Papierów Wartosciowych w Warszawie S.A. $12.86 $540 $471 NA NA 34% 2% 42% 1% 62% 4.7x 4.6x 7.5x 7.5x 12.0x 11.9xHellenic Exchanges - Athens Stock Exchange SA $6.25 $377 $277 74% 0.5 19% 14% 57% 29% 48% 8.6x 7.5x 20.1x 15.6x 52.1x 39.1x

Median 10% 1.7 13% 10% 13% 13% 60% 8.5x 7.5x 15.6x 13.2x 24.3x 20.6x



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26

PaymentsVisa Inc. $122.94 $277,464 $282,534 18% 1.5 17% 11% 17% 12% 71% 15.1x 13.7x 21.5x 19.2x 34.1x 26.8xMastercard Incorporated $175.76 $184,791 $182,433 20% 1.5 15% 16% 16% 17% 59% 14.7x 12.6x 25.2x 21.5x 38.5x 29.3xAmerican Express Company $97.51 $83,886 $112,754 12% 1.1 4% 9% NA 6% 33% 3.4x 3.1x 10.1x 9.5x 16.7x 13.7xPayPal Holdings, Inc. $79.41 $95,305 $84,679 19% 1.8 20% 18% 22% 21% 27% 6.5x 5.5x 25.1x 20.8x 42.4x 34.7xDiscover Financial Services $78.83 $27,965 $40,982 8% 1.2 8% 7% 3% 5% 53% 4.2x 3.9x 7.7x 7.4x 13.3x 10.0xAlliance Data Systems Corporation $240.96 $13,364 $34,992 15% 0.7 9% 7% (5%) 11% 27% 4.5x 4.2x 17.5x 15.7x 13.3x 10.6xFirst Data Corporation $15.62 $14,468 $33,168 11% 1.1 4% 6% 5% 8% 26% 2.8x 2.6x 10.9x 10.0x 10.3x 11.3xWorldpay, Inc. $81.28 $24,372 $29,947 15% 1.4 11% 82% 11% 82% 48% 14.1x 7.8x 29.5x 16.2x 24.2x 21.7xGlobal Payments Inc. $113.39 $18,052 $22,011 16% 1.4 24% 12% 9% 18% 35% 6.2x 5.6x 18.9x 16.0x 28.4x 22.5xFleetCor Technologies, Inc. $199.93 $17,955 $21,560 17% 1.2 23% 13% 22% 15% 53% 9.6x 8.5x 18.5x 16.1x 23.7x 19.4xCielo S.A. $7.46 $20,235 $21,196 6% 2.7 (5%) 5% (6%) 7% 45% 5.9x 5.6x 13.3x 12.5x 16.1x 15.4xTotal System Services, Inc. $87.95 $15,983 $18,726 16% 1.3 (19%) 11% 15% 12% 35% 5.5x 5.0x 15.7x 14.1x 26.3x 21.0xSquare, Inc. $46.05 $18,252 $17,751 90% NA 29% 33% NA NA 3% 8.1x 6.1x NM NM NM NMWirecard AG $120.54 $14,894 $13,984 26% 1.4 64% 28% 52% 33% 29% 7.9x 6.1x 28.4x 21.4x 46.5x 34.8xThe Sage Group plc $9.56 $10,346 $11,335 10% 2.1 19% 12% 16% 10% 30% 4.9x 4.4x 16.3x 14.8x 23.6x 20.4xThe Western Union Company $19.82 $9,103 $11,295 4% 2.6 1% 4% (0%) 2% 25% 2.1x 2.0x 8.3x 8.1x 10.8x 10.7xEdenred SA $35.32 $8,238 $9,097 11% 2.3 33% 7% 31% 10% 38% 5.7x 5.3x 15.4x 14.0x 29.5x 26.0xWEX Inc. $149.55 $6,434 $8,337 15% 1.3 22% 15% 44% 23% 42% 6.7x 5.8x 17.2x 14.0x 27.8x 19.7xIngenico Group - GCS $87.33 $5,436 $7,235 10% 1.4 23% 14% 21% 10% 20% 2.4x 2.1x 11.9x 10.8x 15.4x 14.6xNCR Corporation $33.00 $3,907 $6,361 4% 2.5 (1%) 2% 6% 2% 17% 1.0x 1.0x 5.6x 5.5x 10.5x 9.9xEuronet Worldwide, Inc. $84.87 $4,471 $4,112 15% 1.1 15% 12% 20% 15% 19% 1.8x 1.6x 9.9x 8.6x 18.6x 16.1xGMO Payment Gateway, Inc. $84.05 $3,095 $2,817 NA NA NM NA NM NA 28% NM 10.4x NM 37.8x NM 75.1xVeriFone Systems, Inc. $16.60 $1,832 $2,521 16% 0.6 (6%) NA (16%) 13% 17% 1.4x 1.4x 9.3x 8.2x 12.5x 10.6xGreen Dot Corporation $65.13 $3,340 $2,490 NA NA 23% 13% 29% 19% 24% 2.8x 2.5x 12.3x 10.3x 30.5x 22.7xBlackhawk Network Holdings, Inc. $44.75 $2,443 $2,005 17% 1.4 13% 8% 22% 15% 11% 0.9x 0.9x 8.7x 7.6x 27.5x 22.6xCardtronics plc $22.38 $1,034 $1,899 12% 1.3 17% NM 5% NM 20% 1.3x 1.5x 5.7x 7.4x 7.7x 15.1xEVERTEC, Inc. $16.20 $1,173 $1,738 NA NA 2% 5% (8%) (1%) 41% 4.4x 4.2x 10.0x 10.1x 11.1x 11.8xEveri Holdings Inc. $7.45 $502 $1,522 20% 0.3 12% 5% 7% 7% 23% 1.6x 1.5x 7.2x 6.7x 9.0x 6.4xMoneyGram International, Inc. $10.73 $583 $1,322 NA NA (2%) 3% 4% 4% 17% 0.8x 0.8x 4.8x 4.6x 10.8x 9.6xNet 1 UEPS Technologies, Inc. $10.25 $583 $624 15% 0.4 2% (4%) (19%) NM 0% 1.0x 1.1x 4.9x NM 6.2x 6.5xSafeCharge International Group Limited $4.24 $623 $510 13% 1.5 7% 13% 2% 14% 31% 4.6x 4.1x 15.1x 13.2x 21.8x 19.3xCass Information Systems, Inc. $58.56 $720 $491 NA NA 6% NA 9% NA NA 3.7x NM 11.9x NM 27.9x NMPAR Technology Corporation $11.04 $177 $177 NA NA 3% NA 9% NA NA 0.7x NM 28.6x NM 58.1x NMeServGlobal Limited $0.13 $120 $112 NA NA (30%) 32% NA NA 10% 7.4x 5.6x NM 55.9x NM NMEarthport plc $0.17 $103 $78 NA NA 33% 13% NA NA NM 2.6x 2.3x NM NM NM NMJetPay Corporation $2.10 $33 $41 NA NA 36% 18% 137% 46% 8% 0.5x 0.5x 8.9x 6.1x NM NM

Median 15% 1.4 12% 12% 9% 12% 27% 4.2x 4.1x 12.1x 12.5x 21.8x 17.7x



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27

Real Estate & Mortgage TechnologyBooking Holdings Inc. $2,034.04 $98,221 $100,345 16% 1.5 17% 17% 14% 19% 38% 8.0x 6.8x 21.2x 17.9x 27.3x 23.5xExpedia, Inc. $105.17 $15,997 $16,931 18% 1.3 15% 12% 8% 6% 16% 1.7x 1.5x 9.7x 9.1x 22.8x 22.2xNationstar Mortgage Holdings Inc. $17.12 $1,673 $16,497 NA NA (14%) 6% (2%) NA NA 9.9x 9.3x 31.0x NM 50.9x 7.3xCoStar Group, Inc. $342.13 $12,349 $11,138 19% 2.6 15% 22% 11% 32% 32% 11.6x 9.4x 39.3x 29.9x 74.5x 47.9xFidelity National Financial, Inc. $39.93 $10,958 $10,790 NA NA (5%) 0% (15%) (12%) 14% 1.4x 1.4x 8.5x 9.6x 17.0x 14.3xBlack Knight, Inc. $47.65 $7,154 $8,577 15% 1.8 2% 6% 9% 6% 48% 8.1x 7.7x 16.9x 15.9x 34.7x 26.8xZil low Group, Inc. $47.54 $8,738 $8,361 NA NA 27% 22% 63% 31% 24% 7.8x 6.4x 35.4x 27.0x 89.6x 57.7xJones Lang LaSalle Incorporated $160.61 $7,293 $8,087 14% 1.2 13% 10% 8% 11% 9% 1.1x 1.0x 11.4x 10.3x 19.0x 16.1xREA Group Limited $60.01 $7,905 $8,030 19% 1.7 14% 17% 24% 19% 58% 14.0x 12.0x 24.5x 20.6x 39.9x 32.6xOcwen Financial Corporation $3.64 $485 $7,308 NA NA (15%) NM NA NA 6% 6.2x 8.5x 45.6x NM NM NMRealogy Holdings Corp. $25.55 $3,325 $6,640 20% 0.6 6% 3% (5%) 1% 12% 1.1x 1.1x 9.1x 9.0x 16.0x 12.5xFirst American Financial Corporation $58.03 $6,439 $5,785 NA NA 3% 3% 15% 18% 14% 1.0x 1.0x 8.3x 7.1x 16.5x 13.1xCoreLogic, Inc. $45.50 $3,708 $5,342 8% 2.2 (5%) NM (6%) 2% 26% 2.9x 2.9x 11.4x 11.2x 19.5x 17.3xRightmove plc $59.01 $5,350 $5,316 11% 2.2 21% 12% 23% 12% 76% 16.2x 14.5x 21.4x 19.1x 27.5x 23.9xTripAdvisor, Inc. $40.08 $5,570 $5,183 12% 2.8 4% 4% (9%) 3% 21% 3.4x 3.2x 16.2x 15.6x 36.0x 34.6xRealPage, Inc. $52.25 $4,346 $4,925 31% 1.2 19% 25% 28% 35% 26% 7.3x 5.9x 30.4x 22.5x 56.6x 36.1xRadian Group Inc. $20.52 $4,433 $4,377 13% 0.7 (1%) 8% (4%) (4%) 50% 3.6x 3.3x 6.3x 6.6x 11.6x 10.0xLendingTree, Inc. $348.50 $4,267 $4,137 38% 1.6 58% 29% 62% 33% 19% 6.8x 5.3x 36.6x 27.6x 91.3x 61.5xEll ie Mae, Inc. $88.67 $3,035 $2,794 20% 2.6 15% 21% 6% 9% 26% 6.8x 5.6x 23.4x 21.4x 57.4x 51.2xColliers International Group Inc. $62.99 $2,453 $2,594 25% 0.7 16% 15% 16% 16% 11% 1.2x 1.0x 11.0x 9.5x 21.8x 18.4xZPG Plc $4.66 $2,034 $2,291 17% 1.0 32% 30% 13% 51% 41% 7.1x 5.4x 20.1x 13.3x 24.0x 16.3xMoneysupermarket.com Group PLC $3.59 $1,927 $1,879 6% 2.7 16% 5% 17% 2% 37% 4.1x 3.9x 10.8x 10.6x 16.0x 15.5xRedfin Corporation $20.59 $1,684 $1,477 NA NA 37% 29% NA NM 1% 4.0x 3.1x NM NM NM NMAppFolio, Inc. $40.10 $1,366 $1,320 NA NA 34% 28% NM 39% 21% 9.3x 7.3x 49.0x 35.3x 97.0x 64.7xRE/MAX Holdings, Inc. $55.30 $979 $1,157 71% 0.4 12% 6% 11% 4% 52% 5.9x 5.6x 11.0x 10.6x 29.2x 24.9xLifull Co., Ltd. $9.69 $1,150 $1,111 20% 1.8 6% 31% 8% 17% 16% 3.9x 3.0x 21.2x 18.1x 109.7x 35.7xMarcus & Mill ichap, Inc. $31.30 $1,194 $908 6% 3.1 (2%) 5% (13%) 8% 15% 1.3x 1.2x 8.8x 8.2x 21.2x 18.9xStewart Information Services Corporation $40.13 $952 $901 NA NA (4%) 4% (4%) 23% 7% 0.5x 0.4x 7.6x 6.2x 19.9x 12.9xAltisource Portfolio Solutions S.A. $26.60 $466 $727 NA NA (7%) NA (25%) NA NA 0.8x NM 5.4x NM 18.0x 35.2xQuinStreet, Inc. $13.13 $607 $565 25% 2.0 8% 17% NM 57% 8% 1.7x 1.5x 27.6x 17.6x NM 51.1xReal Matters Inc. $5.91 $521 $443 105% 0.5 22% 22% NM NM 5% 1.5x 1.2x 80.5x 25.8x NM 49.2xAgilysys, Inc. $11.17 $261 $224 25% NA (1%) 4% (1%) NM 7% 1.7x 1.7x 39.4x 22.8x NM NMReis, Inc. $19.25 $221 $201 NA NA 2% 10% (9%) 32% 30% 4.2x 3.8x 16.4x 12.4x 113.2x 55.8x

Median 19% 1.7 12% 12% 8% 16% 21% 4.0x 3.5x 18.5x 15.6x 27.4x 24.4x

Trading TechnologyThe Charles Schwab Corporation $53.02 $71,390 $61,248 26% 0.9 15% 16% 20% 24% 50% 7.1x 6.1x 15.1x 12.2x 32.7x 24.7xTD Ameritrade Holding Corporation $57.50 $32,624 $22,930 32% 0.6 19% 33% 18% 23% 41% 5.7x 4.3x 12.9x 10.5x 31.4x 18.1xE*TRADE Financial Corporation $52.23 $13,907 $14,503 23% 0.7 22% 16% 5% 12% 49% 6.1x 5.3x 12.0x 10.7x 22.4x 16.2xInvestment Technology Group, Inc. $19.82 $646 $443 NA NA 3% 10% NA 55% 22% 0.9x 0.8x 5.8x 3.8x 58.3x 18.5xVirtu Financial, Inc. $29.70 $2,651 $378 NA NA 24% 65% (25%) 94% 45% 0.7x 0.4x 1.9x 1.0x 68.8x 32.0xINTL FCStone Inc. $39.65 $747 ($319) NA NA 27% (0%) 14% 11% NA NM NM NM NM 13.5x 12.0xGAIN Capital Holdings, Inc. $7.09 $320 ($737) NA NA (24%) 19% NM NM 24% NM NM NM NM NM 9.8xInteractive Brokers Group, Inc. $69.40 $4,960 ($18,910) NA NA 15% 16% 0% 36% 80% NM NM NM NM 44.2x 32.1x

Median 26% 0.7 17% 16% 10% 24% 45% 5.7x 4.3x 12.0x 10.5x 32.7x 18.3x



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fintech sector report - gca altium · 3. select january & february financing transactions...

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