Slide Presentation
24 Jul 2024
Global fintech M&A deal volume rose by 20% from Q1 2024, growing at 2x compared to last year's 10% increase for the same period. In Q2 2024, the fintech M&A landscape was characterized by strategic consolidations and a strong focus on integrating advanced technologies such as AI. This sector remains dynamic and attractive for strategic buyers and PE investors. We advise viewing the slides via the "PDF" icon button. General Commentary & Highlights North America Fintech M&A Growing Coming Out of Q2 2024 In Q2 2024, North America witnessed a notable increase in fintech M&A, fueled by heightened investment in new domains and PEs targeting public-to-private buyouts. This resurgence in deal flow is indicative of the growing confidence in the fintech sector, as well as the strategic importance of technological innovation in financial services Europe’s Fintech M&A Activity Rebounding in Q2 2024 European fintech M&A still somewhat subdued in Q2, but momentum appears to be picking up heading into Q3. Activity still mostly smaller deals including capability acquisitions and some increased activity in growth equity. Fintech M&A in APAC Accelerating Through Q2 2024 In Q2 2024, fintech M&A deal activity in the Asia-Pacific (APAC) region experienced a notable surge, marking a 6% increase compared to the same period in Q2 2023. During Q2 2024, APAC fintechs secured significant funding, raising over $3.3 billion—a 40% increase from the prior quarter—which fueled much of the M&A activity in the region. Modest Uptick in Fintech M&A Activity in LATAM and MEA Regions in Q2 2024 In Q2 2024, fintech M&A in both the LATAM and MEA regions saw a modest increase, driven by a rise in foreign investment and continued maturation of the fintech ecosystem. This increasing activity reflects the growing interest of venture capitalists and PE funds, who are attracted by these large underserved markets and promising fintech startups. Fintech M&A Deal of the Quarter: Advent Acquired Nuvei in a $6.3B Deal Advent acquires an asset with strong growth performance at a reasonable valuation. Public valuation hindered by 2023 short-seller activity and company’s reputation for serving higher-risk verticals. Nuvei’s c.40% YOY growth is impressive given the c.10% growth in the underlying revenue pool, the company is clearly winning share. The Advent – Nuvei acquisition is one of few public-to-private transactions in payments in recent years, despite steep declines from valuation peeks in 2022. Please do not hesitate to contact Yuriy Kostenko at Yuriy@FlagshipAP.com or Alessandro Mighetto at Alessandro@FlagshipAP.com with comments or questions.
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