HW Financial Technology Introduction

Harris Williams (“HW”)

  • 25+ years and more than 1,000 closed transactions 
  • 350+ professionals across eight office globally
  • 170+ closed transactions in the last 24 months
  • 10 industry groups

Focused Advisory Services

  • Mergers and acquisitions (M&A)
  • Capital raises 
  • Corporate divestitures

Consistent Recognition for Quality


HW Technology, Media & Telecom (“TMT”) Group

  • 35+ dedicated TMT professionals 
  • TMT offices include Boston, San Francisco, and London

Key Themes

  • SaaS / Cloud
  • Data & Analytics
  • Digital Transformation
  • A.I. / Machine Learning

Horizontal Focus Areas

  • Application Software
  • Cloud Managed Services and Hosting Solutions
  • Compliance Solutions
  • CRM and Marketing Automation
  • Human Capital Management
  • Infrastructure and Security Software
  • IT and Tech-Enabled Services
  • Marketing, Research, and Insights Services

Vertical Focus Areas

  • Architecture, Engineering, and Construction Software
  • Education Technology and Services
  • Energy Technology
  • Facilities and Real Estate Software
  • Financial Technology and Payments
  • Government Technology
  • Healthcare IT
  • Industrial and Supply Chain Technology
  • Internet and eCommerce
  • Retail Technology


Financial Technology Taxonomy

Enterprise and Commercial

Solutions focused on supporting B2C and B2B payments and financial activity and serving the financial needs of enterprises of all sizes

  • Payments
  • B2B Transactions
  • Financial Software

Select Market Participants



Solutions focused on serving the specific operational and compliance needs of banks, insurance companies, and asset managers

  • Banking
  • Insurance
  • Asset Mgmt. / Trading 

Select Market Participants



Solutions focused on delivering improved financial and payment experiences, personal wealth management, and access to consumer loans

  • Payments
  • Personal Finance 
  • Investing

Select Market Participants


Select Recent HW Financial Technology Transactions

screen_shot_2020-08-10_at_5.16.30_pm.pngProvider of an all-in-one, cloud-based marketing automation platform for financial professionals, broker dealers, insurance agents, and enterprises



screen_shot_2020-08-10_at_5.18.59_pm.pngProvider of SaaS property and investment management software solutions for the residential and commercial real estate markets



screen_shot_2020-08-10_at_5.19.51_pm.pngProvider of business management and revenue cycle management (RCM) services to the health and wellness, child care, insurance, and leisure and attraction verticals



screen_shot_2020-08-10_at_5.20.39_pm.pngProvider of integrated risk management, policy administration, and insurance claims management software solutions



screen_shot_2020-08-10_at_5.21.35_pm.pngProvider of a SaaS platform serving single- family and condo high-rise associations with unified property management, resident portals, accounting, payments, and security solutions



screen_shot_2020-08-10_at_5.22.37_pm.pngProvider of next- generation integrated digital government software and payment solutions, designed to improve government operations, revenue collection, and citizen engagement



screen_shot_2020-08-10_at_5.24.01_pm.pngProvider of e-learning, workforce management, and compliance solutions to enterprises and professionals across financial services, healthcare, and real estate



screen_shot_2020-08-10_at_5.25.08_pm.pngProvider of integrated software, data and analytics solutions to the global energy market, including financial services, capital markets, and trading and risk professionals



screen_shot_2020-08-10_at_5.25.56_pm.pngProvider of member management software and payment processing solutions for fraternal organizations and nonprofits



screen_shot_2020-08-10_at_5.26.48_pm.pngProvider of integrated SaaS civic engagement and payment solutions for government entities

Case Study: FMG Suite

FMG Suite Overview

FMG Suite is a leading, cloud-based marketing automation platform for financial professionals, broker dealers, insurance agents, and enterprises. More than 40,000 financial professionals use FMG Suite every day to engage with clients and prospects to grow their businesses.

Key Investment Highlights

  • Leading all-in-one cloud-based marketing automation platform for financial professionals
  • Highly scalable SaaS solution provides high ROI value proposition
  • Turnkey solution combines websites, marketing automation, and traditional marketing tools
  • Compelling financial profile with high recurring revenue and profitability
  • Underpenetrated market opportunity supported by favorable secular trends
  • Industry compliance requirements provide a material barrier to entry
  • Proven management team with deep domain and acquisition expertise

Process Notes


  • Competitive process with strategic, quasi-strategic, and financial sponsor involvement
  • Buyers primarily interacted with Management on a virtual basis, with a select few number of parties having met with Management in-person pre-COVID
  • Aurora Capital Partners delivered a fully-baked LOI after completing all business, legal, tax, and other diligence

FMG’s Proprietary Marketing Automation Platform


The Most Comprehensive Turnkey Marketing Automation Platform for Financial Professionals and Enterprises

  • $42M 2020E Run-rate Revenue
  • 17% 2018-2020E Run-rate Revenue CAGR
  • $15M 2020E Adj. Run-rate EBITDA
  • 2.3M Professionals in Core Market

Enterprise & Commercial Market Observations1






Institutional & Consumer Market Observations1






Impact of COVID-19 on Financial Technology

The global COVID-19 pandemic represents a watershed moment for integrated payments as consumer, business, and government behavior changes dramatically, and it will have significant short- and long-term implications across all fintech segments.

Year-to-Date Public Equity Performance


Payment Networks and Processors

Payment networks and processors have reported signs of decreased volume resulting from social distancing and travel restrictions, negatively impacting financials and valuations in the near-term; however, COVID-19 is likely to accelerate digital payment adoption as consumers and businesses migrate to e-commerce and retailers promote cashless transactions.

B2B Payments

B2B payment technology providers in select end markets, such as hospitality and travel, have been materially impacted by the economic slowdown, but other market segments are benefiting from accelerated demand for digital procure-to-pay and bill payment technologies that mitigate business continuity risks in historically paper-driven or in-person environments.

Financial Software

Financial software vendors have performed well relative to other fintech players, as most generate revenue from recurring subscriptions; however, software providers will likely experience higher churn across, underlying customer base, particularly at the small and midsize business (SMB) level, and sales cycle challenges as enterprises curtail and/or delay spending decisions.

Institutional Software

Financial services institutions were generally performing well prior to the escalation of COVID-19, boding well for technology companies that serve the sector; however, financial institutions will likely reprioritize resources and decrease technology spending in the short term, particularly in segments most vulnerable to macro conditions and a declining interest rate environment, such as banking and insurance.


Consumer behavior has shifted considerably under restrictions, increasing unemployment, and waning confidence; however, consumer-focused fintechs are positioned to benefit from acceleration of digital payments, mobile banking and financial management, and alternative lending.

Select Financial Technology M&A Transactions1


Mastercard’s Acquisition of Finicity

  • Finicity is a cloud-based open-banking platform for financial management, payments, and credit card decision-making that aggregates data and activity across accounts to deliver analytics and insights to consumers.
  • The Company integrates with over 16,000 banks to receive and analyze data and serves some of the world’s leading financial institutions and fintech companies, including Experian, Rocket Mortgage, U.S. Bancorp, and JPMorgan Chase.
  • Mastercard’s acquisition of Finicity comes on the heels of Visa’s acquisition of open-banking platform Plaid and will help expand its existing EU-centric open-banking solutions in the U.S., as well as enhance its credit-decisioning capabilities.


Zip’s Acquisition of QuadPay

  • Quadpay is a payment platform that provides retailers and e-commerce merchants the ability to integrate flexible payment options to allow consumers to split purchases into four interest-free installments.
  • The Company, headquartered in New York, New York, boasts an impressive customer base, including Amazon, Walmart, and Etsy, among 3,500 other merchants serving 1.5 million consumers.
  • Zip, a leading provider of “buy now, pay later” technology in Australia, will leverage the acquisition to expand its reach into the U.S. market, increasing its overall user base to 3.5 million and accelerating payment volumes.


SS&C’s Acquisition of Innovest

  • Innovest systems is a web-based software solution for trust accounting, payments, custody, trade execution, and other asset-servicing processes utilized by trusts, banks, retirement plans, and wealth management firms.
  • The Company has over $500 billion in assets under administration on its trust and wealth management platform, processing over four million payments annually.
  • SS&C serves customers with over $90 trillion in assets in trusts, representing a compelling opportunity to cross-sell Innovest software solutions into its existing customer base, not only increasing wallet share, but strengthening its overall competitive positioning.


Apttus’ Acquisition of Conga

  • Conga is a leading provider of digital document-transformation technologies that promote collaboration, process automation, intelligence, and compliance.
  • The Company serves over 10,000 enterprise and mid-market organizations globally, encompassing 85,000 users across nearly all industries within 85 countries around the world.
  • Apptus, which is backed by Thoma Bravo, will leverage Conga to enhance its offering by delivering a comprehensive suite of quote-to-cash, contract life-cycle management, document creation, and e-signature technologies that streamlines and digitizes workflows.


SoFi’s Acquisition of Galileo

  • Galileo Financial Technologies is a global API-based payments platform that enables companies, financial institutions, and investment firms to deliver digital payment and banking functionality.
  • The Company serves a number of leading fintech companies around the world—including SoFi—and processed $53 billion in annualized payments in March 2020, up from $26 billion in September 2019.
  • SoFi’s acquisition represents a significant opportunity to expand its offering to its one million members as well as to diversify its customer base both in terms of product offerings utilized and international markets.

Financial Technology Acquisition Activity

Most Active Strategic Acquirers of Fintech Assets by Volume2


  • The 10 most active strategic fintech consolidators have acquired over 100 companies since 2016.
  • During the first half of 2020, eight of the top 10 most active strategics made at least one acquisition, including SS&C and Global Payments, each of which have made three acquisitions year to date.

Global Financial Software M&A Activity2


  • Across financial software, there were 133 M&A transactions closed in Q2 2020, with strategic acquirers representing 71% of total deal volume.
  • Strategic acquirers continue to outpace private equity as the race for wallet share and additional payment volumes remains front of mind for many decision-makers.
  • Despite ongoing market turmoil driven by the COVID-19 pandemic, fintech continues to be a bright spot as digitization accelerates.

Enterprise & Commercial Solutions – Landscape

Representative Enterprise & Commercial Solution Providers


Vertical Software and Payments Ecosystem

Representative Vertically-Integrated Software and Payments Providers


Enterprise & Commercial Solutions – Trading Comparables


Enterprise & Commercial Solutions – Transaction Activity


Institutional Solutions – Landscape

Representative Institutional Solution Providers


Institutional Solutions – Trading Comparables


Institutional Solutions – Transaction Activity


Consumer Solutions – Landscape

Representative Consumer Solution Providers


Consumer Solutions – Trading Comparables


Consumer Solutions – Transaction Activity


1. CapIQ

2. PitchBook