FinTech Investment Banking... · 2020. 2. 4. · TEV / Sales TEV / EBITDA EBITDA Margins Price / Earnings Company Price Off 52 Wk High / Low. 13 Market Valuations –Banks | Alternative

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FinTech Investment Banking

Financial Technologies Monthly Market UpdateFebruary 2020

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4Index Performance1

Table of contents

3

9Market Valuations2

19Capital Raising Trends3

25M&A Trends4

28US IPO Market Update5

32The Rosenblatt Difference6

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Index Performance

4


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-35%

-25%

-15%

-5%

5%

15%

25%

35%

2/01/19 3/11/19 4/15/19 5/21/19 6/26/19 8/01/19 9/06/19 10/11/19 11/15/19 12/23/19 1/30/20

Performance Performance Performance Performance

5

Cap Weighted Price Return Index Performance – Payments Technologies (LTM)

Source: Bloomberg, FactSet Updated on 2/03/2020Note: The index is made up of companies mentioned under each of the above buckets in subsequent slides except, the index doesnot adjust for any new companies added and excludes old companies delisted in last twelve months | Weight (Capped at 10%)

S&P 500 Paym ent Inf rastructure P2P Transfers | Rem ittances Card Networks

% ∆ YoY 20.0% 21.8% 7.4% 12.6%

% ∆ MoM 1.7% 5.0% 1.2% 1.6%

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-35%

-25%

-15%

-5%

5%

15%

25%

35%

2/01/19 3/11/19 4/15/19 5/21/19 6/26/19 8/01/19 9/06/19 10/11/19 11/15/19 12/23/19 1/30/20


6

Cap Weighted Price Return Index Performance – Application Software (LTM)

S&P 500 Sof tware | Back-End SolutionsF inancia l Data | Inform ation

ProvidersLending Ana lyti cs | Ins ights

% ∆ YoY 20.0% 10.7% 29.4% 16.8%

% ∆ MoM 1.7% 2.1% 6.4% 3.0%


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0

10

20

30

40

50

60

70

80

90

100

-35%

-25%

-15%

-5%

5%

15%

25%

35%

2/01/19 3/11/19 4/15/19 5/21/19 6/26/19 8/01/19 9/06/19 10/11/19 11/15/19 12/23/19 1/30/20

Performance Performance Performance Performance Performance 0

7

Cap Weighted Price Return Index Performance – Capital Markets (LTM)

S&P 500 G lobal Exchanges Reg iona l ExchangesBroker Dea lers | Market

MakersReta i l | e-Brokers

CBOE Market Volati l i ty

Index (R)

% ∆ YoY 20.0% 26.3% 2.0% 2.5% 4.5% -4.0%

% ∆ MoM 1.7% 4.7% 0.1% -0.4% 0.1% 12.4%


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-35%

-25%

-15%

-5%

5%

15%

25%

35%

2/01/19 3/11/19 4/15/19 5/21/19 6/26/19 8/01/19 9/06/19 10/11/19 11/15/19 12/23/19 1/30/20


8

Cap Weighted Price Return Index Performance – Lending & Credit (LTM)

S&P 500G lobal Divers i f ied Banks -

Dom estic

G loba l Divers i f ied Banks -

F oreign

Reg iona l Divers i f ied Banks -

Dom estic

% ∆ YoY 20.0% 15.5% 8.0% 11.6%

% ∆ MoM 1.7% -1.9% -3.4% -6.0%


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Market Va luat ions

9


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Price to Earning Estimates by Category

10.3x

11.5x

13.7x

11.5x

14.4x

23.5x

26.2x

31.6x

33.1x

33.5x

22.3x

26.7x

35.1x

0x5x10x15x20x25x30x35x40x

Foreign Banks

Domestic Banks

Alternative Lenders

Retail & e-Brokers

BD & Market Makers

Regional Exchanges

Global Exchanges

Financial Data Providers

Software Solutions

Lending Analytics & Insights

Transfer & Remittances

Card Networks

Payment Infrastructures

9.4x

10.3x

15.3x

15.8x

11.6x

22.3x

24.6x

28.8x

27.9x

29.8x

18.0x

23.6x

31.0x

0x 5x 10x 15x 20x 25x 30x 35x

Foreign Banks

Domestic Banks

Alternative Lenders

Retail & e-Brokers

BD & Market Makers

Regional Exchanges

Global Exchanges


Software Solutions



Card Networks


Ap

plic

atio

n

Soft

war

ePa

ymen

t Te

chn

olo

gies

Len

din

g &

Cre

dit

Cap

ital

M

arke

ts2019 E Consensus P / E Ratio 2020 E

Foreign Banks

Domestic Banks

Alternative Lenders

Retail & e-Brokers

BD & Market Makers

Regional Exchanges

Global Exchanges


Software Solutions



Card Networks


Source: Bloomberg, FactSet Updated on 1/01/2020

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Sales Growth vs. Price to Earnings Ratio

Domestic Banks, 1%, 10.3x

Foreign Banks, 1%, 9.4x

Alternative Lenders, 15%, 15.3x

Global Exchanges, 6%, 24.6x

Regional Exchanges, 7%, 22.3x

BD & Market Makers, 12%, 11.6x

Retail & e-Brokers, 7%, 15.8x

Software Solutions, 9%, 27.9xFinancial Data Providers, 6%, 28.8x

Lending Analytics & Insights, 7%, 29.8x

Payment Infrastructures, 13%, 31.0x

Transfer & Remittances, 1%, 18.0x

3x

8x

13x

18x

23x

28x

33x

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Pric

e /

Earn

ing

Rat

io(C

Y’20

E)

Sales Growth (CY’19E – CY’20E)

Note: Every bubble represents (1 Revenue Year Growth %, 2020 E Median P/E ratios of the universe.) Alternative Lending, & P2P Transfer and Remittances, Trading Technology, Global Diversified Banks excluded because of high / lowrange Source: FactSet, Bloomberg , Updated on 2/03/2020

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Market Valuations

Source: FactSet, Bloomberg , Updated on 2/03/2020Note: N/A denotes negative multiple or oddly high multiple or the multiple is not available

Sales

Growth

19 E - 20 E 2019 E 2020 E 2019 E 2020 E 2019 E 2020 E 2019 E 2020 E

Global Diversified Banks 9% 24% 1% n/a n/a n/a n/a n/a n/a 10.6x 9.7x

Capital Markets 9% 35% 7% 7.9 7.7 15.7 14.4 55% 52% 22.1 21.5

Application Software 5% 42% 7% 7.1 6.8 22.2 19.3 26% 28% 32.9 28.9

Payments 4% 39% 8% 6.0 5.7 23.0 19.0 28% 29% 32.1 24.5

Global Diversified Banks - Domestic 8% 28% 1% n/a n/a n/a n/a n/a n/a 11.5x 10.3x

Global Diversified Banks - Foreign 11% 19% 1% n/a n/a n/a n/a n/a n/a 10.3 9.4

Alternative Lending 37% 28% 15% 1.9 1.8 15.2 11.7 16% 16% 13.7 15.3

Global Exchanges 4% 37% 6% 12.5x 11.6x 18.9x 18.0x 64% 65% 26.2x 24.6x

Regional Exchanges 9% 24% 7% 7.1 6.4 15.4 14.4 49% 49% 23.5 22.3

Broker Dealers | Market Makers 9% 35% 12% 4.5 3.8 12.5 8.8 37% 43% 14.4 11.6

Retail | e-Brokers 14% 34% 7% 3.6 3.7 8.2 8.2 53% 47% 11.5 15.8

Software | Back-End Solutions 10% 40% 9% 5.0x 4.5x 18.8x 17.0x 24% 24% 33.1x 27.9x

Financial Data | Information Providers 3% 56% 6% 8.1 7.8 23.1 21.7 38% 38% 31.6 28.8

Lending Analytics | Insights 2% 42% 7% 7.4 6.8 19.7 18.1 34% 35% 33.5 29.8

Payment Infrastructure 4% 43% 13% 7.3x 6.8x 23.1x 19.0x 30% 30% 35.1x 31.0x

P2P Transfer | Remittances 9% 36% 1% 2.9 2.6 11.8 11.5 25% 26% 22.3 18.0

Card Networks 5% 38% 9% 11.5 10.4 29.6 26.1 65% 65% 26.7 23.6

Payments

Banks | Alternative Lending

Capital Markets

Application Software

Price / EarningsTEV / Sales EBITDA MarginsTEV / EBITDA

CompanyPrice

Off 52 Wk

High / Low

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Market Valuations – Banks | Alternative Lending


Sales

Growth

Price Market CapEnterprise

Value2019 E 2020 E 2019 E 2020 E 2019 E 2020 E 2019 E 2020 E 19 E - 20 E

Company

Market Data TEV / Sales TEV / EBITDA EBITDA Margins Price / Earnings

Off 52w

High / Low

P/B D/E

JPMorgan Chase 5% 36% $ 133.37 $ 418,313 n/a n/a n/a n/a n/a n/a n/a 12.4x 12.3x 1.7x 148% -1%

Bank of America 8% 26% 32.97$ 291,328$ n/a n/a n/a n/a n/a n/a n/a 12.0 10.9 1.2 167% 1%

Wells Fargo 14% 9% 47.12$ 194,813$ n/a n/a n/a n/a n/a n/a n/a 11.6 11.4 1.3 185% -6%

Citigroup 10% 25% 75.13$ 164,023$ n/a n/a n/a n/a n/a n/a n/a 9.3 8.8 0.9 290% 1%

U.S. Bancorp 12% 13% 53.69$ 82,360$ n/a n/a n/a n/a n/a n/a n/a 12.9 12.3 2.0 69% 1%

Morgan Stanley 9% 36% 52.60$ 85,138$ n/a n/a n/a n/a n/a n/a n/a 10.6 9.7 1.1 326% 1%

Goldman Sachs 5% 32% 239.01$ 84,630$ n/a n/a n/a n/a n/a n/a n/a 11.4 9.7 1.1 486% 1%

Capital One Financial 7% 30% 99.75$ 45,546$ n/a n/a n/a n/a n/a n/a n/a 8.3 8.5 0.8 114% 6%

Median 8% 28% 11.5x 10.3x 1.2x 176% 1%

HSBC 20% 2% $ 7.23 $ 146,900 n/a n/a n/a n/a n/a n/a n/a 10.3x 10.5x 0.8x 203% 0%

Royal Bank of Canada 4% 8% 78.98$ 112,996$ n/a n/a n/a n/a n/a n/a n/a 11.8 11.3 2.0 177% 0%

Commonwealth Bank of Australia 4% 14% 56.61$ 100,214$ n/a n/a n/a n/a n/a n/a n/a 18.3 17.7 2.1 161% -1%

BNP Paribas 12% 24% 53.45$ 66,804$ n/a n/a n/a n/a n/a n/a n/a 7.9 7.6 0.7 1242% 1%

Lloyds 25% 26% 0.74$ 51,724$ n/a n/a n/a n/a n/a n/a n/a 7.9 8.1 1.0 386% -2%

Bank of Montreal 5% 14% 75.79$ 48,448$ n/a n/a n/a n/a n/a n/a n/a 10.7 10.2 1.4 184% 5%

UBS 8% 23% 12.41$ 47,904$ n/a n/a n/a n/a n/a n/a n/a 10.9 9.4 0.8 440% 4%

Barclays 14% 37% 2.21$ 38,249$ n/a n/a n/a n/a n/a n/a n/a 7.7 7.1 0.5 436% 3%

Royal Bank of Scotland 22% 32% 2.83$ 34,168$ n/a n/a n/a n/a n/a n/a n/a 9.1 8.8 0.6 116% 1%

Credit Suisse 11% 15% 12.61$ 32,231$ n/a n/a n/a n/a n/a n/a n/a 10.2 8.1 0.7 834% 3%

Standard Chartered 16% 13% 8.21$ 26,229$ n/a n/a n/a n/a n/a n/a n/a 10.8 9.3 0.7 425% 4%

Deutsche Bank 6% 40% 8.99$ 18,582$ n/a n/a n/a n/a n/a n/a n/a -85.9 144.2 0.2 1002% -5%

Median 11% 19% 10.3x 9.4x 0.7x 405% 1%

Global Diversified Banks - Domestic

Global Diversified Banks - Foreign

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Market Valuations – Banks | Alternative Lending


Sales

Growth



Company


Off 52w

High / Low

P/B D/E

LendingTree 29% 10% 307.96$ 4,003$ 4,029$ 3.6 3.1 19.9 17.2 18% 18% 116.3 69.7 12.5 9% 16%

GreenSky 42% 67% $ 9.58 $ 1,724 $ 1,612 3.0x 2.6x 9.7x 8.5x 31% 31% 17.1x 15.3x 38.3x 23% 17%

LendingClub 40% 4% 11.36$ 1,001$ 690$ 0.9 0.8 5.2 3.7 17% 21% n/a 29.7 1.3 22% 13%

QuinStreet 35% 28% $ 13.02 $ 667 $ 612 1.3x 1.2x 15.2x 11.7x 9% 10% 27.7x 19.5x 3.6x 2% 13%

Oportun Financial 23% 40% 19.97$ 539$ 2,103$ 4.0 3.4 28.4 22.7 14% 15% 9.1 8.7 5.2 290% 20%

Funding Circle 82% 3% $ 0.97 $ 339 $ 206 0.9x 0.8x n/a n/a -10% -3% n/a n/a 0.9x 64% 18%

On Deck Capital 50% 38% 3.96$ 285$ 1,102$ 2.5 2.4 28.7 25.8 9% 9% 10.2 8.6 0.9 320% 5%

Elevate Credit 20% 28% $ 4.76 $ 210 $ 695 0.9x 0.9x 5.0x 5.0x 18% 18% 6.8x 5.6x 1.3x 268% 3%

Median 37% 28% 1.9x 1.8x 15.2x 11.7x 16% 16% 13.7x 15.3x 2.4x 44% 15%

Experian 3% 39% 34.81$ 31,618$ 35,609$ 6.9 6.4 19.7 18.0 35% 35% 33.6 30.1 12.2 14% 8%

Equifax 2% 44% $ 152.27 $ 18,437 $ 21,652 6.2x 5.8x 18.4x 17.0x 34% 34% 27.3x 26.3x 6.7x 17% 6%

TransUnion 2% 59% 92.72$ 17,459$ 20,953$ 7.9 7.3 20.0 18.1 40% 40% 33.5 29.5 7.9 22% 9%

Fair Isaac 1% 85% 415.83$ 12,121$ 12,845$ 11.1 10.2 35.0 31.3 32% 33% 55.4 49.3 38.8 7% 8%

Black Knight 0% 38% 67.70$ 10,125$ 11,436$ 9.7 9.5 19.6 19.0 49% 50% 35.1 33.4 5.1 16% 2%

CoreLogic 5% 32% 47.01$ 3,738$ 5,465$ 3.1 3.2 11.1 10.7 28% 30% 17.1 16.1 3.5 48% -2%

Median 2% 42% 7.4x 6.8x 19.7x 18.1x 34% 35% 33.5x 29.8x 7.3x 17% 7%

Lending Analytics | Insights

Alternative Lending

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Market Valuations – Capital Markets


Sales

Growth



Company


Off 52w

High / Low

P/B D/E

CME 5% 33% $ 214.57 $ 76,894 $ 79,999 16.4x 15.6x 25.1x 23.0x 65% 68% 31.4x 29.2x 2.7x 6% 5%

Intercontinental Exchange 0% 39% 100.04$ 55,707$ 63,350$ 12.2 11.5 19.1 18.1 64% 64% 25.8 23.9 3.0 15% 6%

Hong Kong Exchanges & Clearing 8% 18% 33.52$ 42,279$ 39,017$ 18.5 16.8 24.6 22.2 75% 75% 34.2 30.6 7.3 1% 10%

London Stock Exchange 3% 77% 103.12$ 36,065$ 37,519$ 12.8 11.7 22.4 20.9 57% 56% 39.3 34.9 6.8 8% 9%

Deutsche Boerse 1% 35% 165.25$ 31,398$ 33,498$ 10.1 9.4 16.8 15.3 60% 61% 25.0 23.2 4.5 8% 8%

B3 5% 54% 11.82$ 24,335$ 23,201$ 16.6 14.7 23.5 20.1 70% 73% 31.3 28.0 3.9 6% 13%

Nasdaq 1% 43% 117.79$ 19,308$ 22,450$ 8.9 8.5 17.1 16.0 52% 53% 23.6 21.9 3.2 20% 4%

Cboe Global Markets 1% 38% 123.86$ 13,721$ 14,463$ 12.8 12.1 18.7 17.8 68% 68% 26.6 25.3 4.0 7% 6%

ASX Limited 8% 23% 56.62$ 10,961$ 10,650$ 18.2 17.4 24.2 23.0 75% 76% 32.9 32.5 4.0 n/a 5%

Japan Exchange 5% 24% 17.85$ 9,572$ 8,404$ 7.9 7.5 12.2 11.3 65% 67% 24.2 23.2 3.5 5% 5%

Singapore Exchange 8% 18% 6.28$ 6,727$ 6,155$ 9.3 8.8 16.4 14.9 57% 59% 23.6 22.0 8.5 1% 6%

Euronext 2% 48% 87.35$ 6,115$ 6,890$ 9.2 8.2 15.7 13.8 59% 59% 21.2 18.5 5.4 20% 12%

Median 4% 37% $ 93.70 ######### 2282503% 12.5x 11.6x 18.9x 18.0x 64% 65% 26.2x 24.6x 4.0x 7% 6%

TMX 0% 56% 93.69$ 5,269$ 5,821$ 9.6 9.0 16.7 15.1 58% 59% 23.5 21.0 1.7 16% 7%

Bolsas y Mercados Espanoles 3% 68% 38.44$ 3,214$ 6,049$ 18.9 18.5 31.3 30.4 60% 61% 23.0 22.4 7.3 275% 3%

Dubai Financial Market 5% 46% $ 0.26 $ 2,069 $ 1,270 14.0x 11.1x n/a n/a n/a n/a 47.5x 38.0x 0.9x n/a 26%

Bolsa Mexicana de Valores 4% 42% 2.30$ 1,364$ 1,243$ 6.5 6.1 10.7 10.0 60% 60% 18.5 17.1 3.8 n/a 7%

Bursa Malaysia 27% 1% $ 1.32 $ 1,071 $ 947 7.9x 7.7x 14.2x 13.8x 55% 56% 23.5x 22.3x 5.5x n/a 3%

Multi Commodity Exchange of India 18% 84% 16.59$ 846$ 702$ 12.4 10.7 25.3 21.0 49% 51% 27.9 25.8 4.7 n/a 16%

JSE 40% 4% $ 7.48 $ 650 $ 510 3.6x 3.4x 9.2x 8.4x 39% 41% 13.9x 12.6x 2.9x 4% 6%

Warsaw Stock Exchange 9% 15% 10.74$ 451$ 320$ 3.7 3.8 6.5 7.7 57% 49% 12.9 14.9 1.8 15% -3%

OTC Markets 14% 17% $ 34.50 $ 389 $ 381 6.2x 5.8x 18.3x 16.2x 34% 36% 27.1x 24.0x 19.9x 5% 7%

BSE 21% 17% 7.34$ 380$ n/a n/a n/a n/a n/a 2% 7% 16.0 14.4 0.9 n/a 10%

Hellenic Exchanges 12% 24% $ 5.17 $ 312 $ 236 7.1x 6.4x 18.2x 15.5x 39% 41% 46.7x 35.9x 2.5x n/a 10%

Philippine Stock Exchange 8% 5% 3.50$ 286$ 203$ n/a n/a n/a n/a n/a n/a n/a n/a 2.8 n/a n/a

NZX 4% 36% $ 0.89 $ 244 $ 252 5.8x 5.4x 12.8x 11.7x 45% 47% 24.7x 22.2x 5.5x 13% 6%

Median 9% 24% 7.1x 6.4x 15.4x 14.4x 49% 49% 23.5x 22.3x 2.9x 14% 7%

Global Exchanges

Regional Exchanges

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Market Valuations – Capital Markets


Sales

Growth



Company


Off 52w

High / Low

P/B D/E

Charles Schwab 12% 32% $ 45.68 $ 58,680 $ 64,738 6.0x 6.0x 12.0x 12.7x 50% 47% 17.1x 17.5x 3.5x 14% 1%

TD Ameritrade 18% 46% 47.65$ 25,762$ 18,320$ 3.0 3.6 5.6 7.7 54% 47% 11.5 15.8 3.2 14% -15%

Interactive Brokers 14% 15% 51.17$ 25,184$ 28,263$ 14.6 13.5 15.2 14.9 96% 91% 23.7 21.5 2.6 n/a 8%

MarketAxess 16% 70% 355.50$ 13,482$ 13,252$ 25.9 22.5 47.1 41.1 55% 55% 65.8 58.9 21.7 1% 15%

E*TRADE 19% 22% 42.25$ 9,406$ 8,958$ 3.1 3.3 5.9 6.8 53% 49% 11.5 11.5 1.7 15% -6%

LPL Financial 9% 35% 90.90$ 7,348$ 8,445$ 1.5 1.4 8.2 8.0 18% 17% 12.7 12.0 7.4 36% 9%

IG Group 9% 44% 8.60$ 3,177$ 2,715$ 4.2 3.9 9.9 9.4 42% 42% 16.2 14.8 3.0 6% 6%

Matsui Securities 27% 4% 8.10$ 2,101$ 2,497$ 9.4 9.4 n/a n/a n/a n/a 20.9 21.1 2.8 41% 0%

Comdirect Bank 3% 54% 15.37$ 2,171$ 2,178$ 5.7 5.1 n/a n/a n/a n/a 8.0 26.7 2.7 n/a 13%

Plus500 46% 123% 11.60$ 1,257$ 935$ 2.6 2.5 4.9 4.8 53% 52% 9.1 8.5 4.3 n/a 6%

Swissquote 3% 79% 61.60$ 944$ n/a n/a n/a n/a n/a n/a n/a 21.0 16.6 2.0 21% 11%

Monex 44% 0% 2.32$ 617$ n/a n/a n/a n/a n/a n/a n/a 7.6 6.8 1.0 261% 11%

CMC Markets 7% 112% 2.05$ 593$ 514$ 2.0 2.2 6.8 8.3 30% 26% 10.8 14.4 1.8 5% -7%

Viel & Cie 14% 6% 5.25$ 376$ 427$ n/a n/a n/a n/a n/a n/a 11.0 10.6 0.9 149% n/a

GAIN Capital 50% 1% 3.68$ 138$ 83$ 0.4 0.3 n/a 1.9 n/a 16% -3.8 17.9 0.6 106% 17%

Bourse Direct 14% 18% 1.25$ 70$ 63$ n/a n/a n/a n/a n/a n/a n/a n/a 1.0 231% n/a

Median 14% 34% 3.6x 3.7x 8.2x 8.2x 53% 47% 11.5x 15.8x 2.7x 21% 7%

Retail | e-Brokers

MarketAxess 16% 70% 355.50$ 13,482$ 13,252$ 25.9 22.5 47.1 41.1 55% 55% 65.8 58.9 21.7 1% 15%

Tradeweb Markets 7% 39% 46.71$ 10,399$ 11,680$ 15.1 13.7 33.7 29.3 45% 47% 46.5 40.9 2.2 1% 10%

Virtu Financial 40% 10% $ 16.43 $ 3,134 $ 5,072 5.3x 4.7x 14.8x 10.6x 36% 44% 18.2x 11.9x 1.9x 65% 13%

TP ICAP 9% 62% 5.18$ 2,918$ 2,888$ 1.2 1.2 7.2 6.5 17% 18% 12.2 11.2 1.2 38% 2%

BGC Partners 9% 30% $ 5.82 $ 2,029 $ 2,769 1.3x 1.2x 6.1x 5.5x 22% 23% 9.5x 8.6x 2.6x 65% 7%

Flow Traders 28% 2% 22.76$ 1,059$ 1,068$ 3.8 3.0 10.1 7.1 38% 42% 14.4 9.8 3.0 2% 28%

Compagnie Financiere Tradition 1% 13% $ 112.85 $ 838 $ 785 n/a n/a n/a n/a n/a n/a n/a n/a 1.9x 45% n/a

INTL FCStone 9% 40% 47.79$ 922$ n/a n/a n/a n/a n/a n/a n/a 10.9 n/a 1.4 55% n/a

Median 9% 35% $ 34.73 247342% 288841% 4.5x 3.8x 12.5x 8.8x 37% 43% 14.4x 11.6x 2.1x 42% 12%

Broker Dealers | Market Makers

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Market Valuations – Application Software


Sales

Growth



Company


Off 52w

High / Low

P/B D/E

S&P Global 2% 58% 295.67$ 72,262$ 76,805$ 11.5 10.8 22.2 20.5 52% 53% 31.4 28.3 126.1 6% 7%

Moody's 1% 64% 261.01$ 49,279$ 54,104$ 11.3 10.6 23.5 21.7 48% 49% 31.8 28.7 120.7 12% 6%

Thomson Reuters 1% 55% 80.90$ 40,444$ 41,914$ 7.1 6.8 28.1 21.7 25% 31% 64.8 41.8 4.1 9% 5%

IHS Markit 2% 56% 79.66$ 31,302$ 36,272$ 8.2 7.9 20.4 19.3 40% 41% 30.3 27.8 3.5 16% 4%

MSCI 1% 73% 292.65$ 24,817$ 26,698$ 17.1 15.4 31.4 27.6 55% 56% 45.4 39.6 n/a 11% 11%

Gartner 5% 31% 163.85$ 14,657$ 17,414$ 4.1 3.7 25.5 23.0 16% 16% 46.2 41.1 14.7 21% 11%

FactSet 5% 35% 289.98$ 10,992$ 11,470$ 8.0 7.7 22.7 22.5 35% 34% 29.0 28.9 14.8 8% 4%

Morningstar 3% 37% 160.11$ 6,854$ 7,153$ n/a n/a n/a n/a n/a n/a n/a n/a 6.6 10% n/a

Forrester Research 20% 35% 41.45$ 772$ 915$ 2.0 1.8 18.8 14.6 10% 13% 26.4 21.6 4.9 27% 7%

Value Line 6% 86% 34.25$ 330$ 258$ n/a n/a n/a n/a n/a n/a n/a n/a 5.3 3% n/a

Median 3% 56% 8.1x 7.8x 23.1x 21.7x 38% 38% 31.6x 28.8x 6.6x 11% 6%

Broadridge Financial Solutions 15% 24% 116.43$ 13,348$ 15,059$ 3.5 3.3 15.7 15.5 22% 22% 25.0 23.1 12.2 15% 3%

Coupa Software 7% 95% 161.73$ 10,318$ 9,211$ 24.2 18.9 235.2 154.0 10% 12% 452.7 343.2 20.6 7% 28%

SEI Investments 1% 42% 67.47$ 10,103$ 9,304$ 5.6 5.3 14.2 13.1 40% 40% 20.8 18.7 5.9 n/a 6%

Guidewire Software 4% 41% 118.90$ 9,899$ 8,692$ 12.1 11.3 60.1 73.1 20% 16% 82.0 102.6 6.2 3% 6%

Computershare 11% 25% 12.02$ 6,501$ 7,936$ 3.4 3.3 11.8 12.0 29% 28% 17.1 18.0 4.2 31% 1%

SimCorp 8% 42% 110.38$ 4,470$ 4,517$ 9.0 8.3 29.0 27.1 31% 31% 39.7 37.5 18.8 2% 9%

Envestnet 3% 54% 78.34$ 4,111$ 4,363$ 4.8 4.2 22.7 18.5 21% 23% 36.6 30.2 4.3 16% 15%

BlackLine 6% 46% 61.51$ 3,422$ 3,226$ 11.3 9.3 103.7 73.0 11% 13% 163.2 118.5 8.9 12% 21%

IRESS Limited 12% 23% 9.16$ 1,602$ 1,781$ 5.2 4.8 20.0 18.0 26% 26% 32.9 26.5 5.6 12% 9%

Ebix 47% 10% 34.17$ 1,042$ 1,711$ 2.9 2.4 9.5 8.0 31% 30% 9.3 7.9 1.9 74% 21%

First Derivatives 23% 38% 35.66$ 968$ 1,066$ 3.3 3.0 17.6 15.9 19% 19% 33.3 29.4 4.5 13% 10%

Linedata Services 22% 17% 31.85$ 211$ 320$ 1.7 1.7 6.7 6.6 25% 25% 10.6 10.2 1.5 61% 1%

Median 10% 40% 5.0x 4.5x 18.8x 17.0x 24% 24% 33.1x 27.9x 5.7x 13% 9%

Software | Back-End Solutions

Financial Data | Information Providers

www.rblt.com 18

Market Valuations – Payments


Sales

Growth



Company


Off 52w

High / Low

P/B D/E

Visa 4% 48% $ 200.81 $ 432,703 $ 434,161 18.9x 17.1x 27.2x 24.4x 70% 70% 36.9x 32.6x 13.4x 4% 10%

Mastercard 1% 54% 324.52$ 326,792$ 328,233$ 19.4 16.9 31.9 27.9 61% 61% 41.8 36.0 58.5 3% 15%

American Express 5% 28% 131.00$ 106,110$ 145,303$ 3.3 3.1 n/a n/a n/a n/a 16.4 14.5 4.2 58% 8%

Discover 19% 11% 75.09$ 23,278$ 48,111$ 4.2 4.0 n/a n/a n/a n/a 8.3 8.4 2.5 105% 5%

Median 5% 38% 11.5x 10.4x 29.6x 26.1x 65% 65% 26.7x 23.6x 8.8x 31% 9%

PayPal 4% 32% $ 116.51 $ 136,666 $ 131,168 7.4x 6.3x 27.0x 23.4x 27% 27% 37.6x 33.8x 8.1x 4% 18%

Western Union 3% 55% 27.09$ 11,358$ 13,473$ 2.5 2.6 10.2 10.0 25% 26% 15.3 13.8 n/a 31% 0%

Euronet Worldwide 9% 36% 155.77$ 8,416$ 8,066$ 2.9 2.6 13.3 11.5 22% 23% 22.3 19.2 6.5 17% 11%

OFX 11% 25% 12.02$ 6,501$ 7,936$ 3.4 3.3 11.8 12.0 29% 28% 17.1 18.0 4.2 31% 1%

MoneyGram International 68% 62% 2.15$ 153$ 1,001$ 0.8 0.8 4.9 4.9 16% 16% 426.7 -117.1 n/a 585% -1%

Median 9% 36% 2.9x 2.6x 11.8x 11.5x 25% 26% 22.3x 18.0x 6.5x 31% 1%

Fidelity National Information Services 3% 39% $ 145.75 $ 89,578 $ 109,091 10.6x 8.0x 25.9x 18.0x 41% 45% 26.3x 22.9x 1.7x 23% 31%

Fiserv 1% 49% 121.94$ 82,906$ 103,657$ 7.1 6.7 22.1 16.8 32% 40% 30.5 24.5 17.6 28% 6%

Global Payments 2% 77% 198.06$ 59,527$ 67,650$ 11.9 7.4 30.0 19.1 40% 39% 32.1 26.2 7.0 17% 60%

Square 4% 47% 79.80$ 33,927$ 33,554$ 15.0 11.8 80.7 63.4 19% 19% 102.3 84.0 24.1 3% 27%

StoneCo 1% 119% 45.30$ 12,565$ 13,089$ 22.4 15.9 40.7 26.8 55% 59% 67.6 46.7 7.8 10% 41%

Jack Henry & Associates 1% 21% 151.98$ 11,693$ 11,670$ 7.5 7.0 23.0 22.0 33% 32% 43.2 42.0 8.1 1% 7%

ACI Worldwide 12% 24% 34.75$ 4,017$ 5,389$ 4.2 3.6 17.0 12.5 25% 29% 28.2 19.4 4.1 37% 17%

EVERTEC 8% 37% 34.33$ 2,469$ 2,906$ 6.0 5.7 12.9 12.2 47% 47% 17.4 15.8 9.4 23% 5%

EVO Payments 12% 17% 28.13$ 2,309$ 3,346$ 5.6 5.2 21.1 19.0 27% 27% 45.8 39.4 n/a 31% 8%

Bottomline Technologies 10% 39% 51.56$ 2,267$ 2,330$ 5.5 5.2 23.3 23.0 24% 22% 38.2 38.3 5.3 6% 7%

Cardtronics 6% 73% 44.54$ 1,987$ 2,629$ 2.0 1.9 8.6 8.0 23% 23% 18.4 16.7 5.2 43% 4%

i3 Verticals 2% 80% 33.51$ 920$ 1,121$ 8.1 6.9 28.9 23.9 28% 29% 40.4 35.8 4.9 15% 18%

Median 4% 43% 7.3x 6.8x 23.1x 19.0x 30% 30% 35.1x 31.0x 7.0x 20% 13%

Card Networks

P2P Transfers | Remittances

Payment Infrastructure

www.rblt.com

Capita l Ra is ing Trends

19


www.rblt.com 20

Fintech Continues To Attract Significant Funding

$8B

$17B$20B $19B

$41B

$0B

$5B

$10B

$15B

$20B

$25B

$30B

$35B

$40B

$45B

2014 2015 2016 2017 2018 2019

Dea

l Val

ue

Capital Invested (Annualized)

Capital Invested (W/ Disclosed $ Value)

$33BE

Select Large Capital Raise

Company

SelectInvestor

838

$250MSeries B

$1.3B Pre-Money

1,235

$1,000MSeries F

$2.6B Pre-Money

1,400

$1,200MPE Growth

$17B Pre-Money

1,699

$1,400MLater Stage VC

$6.6B Pre-Money

1,967

$14,000MSeries C

$136B Pre-Money

1,850E

$318MSeries E

$1.3B Pre-Money

Deal Count(w/ Reported $ Value)

# of Deals(w/ Reported $ Value)

(CY’14 – CY’19)

> 8,500

Total Deal Value(w/ Reported $ Value)

(CY’14 – CY’19)

> $120B

Unicorns Created(CY’14 – CY’19)

> 55

↑ 112% ↑ 18% ↓ 5% ↑ 116% ↓ 19%($) % ∆ YoY

F i n Te c h C a p i t a l R a i s e( C Y ’ 1 4 – C Y ’ 1 9 | V e n t u r e C a p i t a l , P E G r o w t h E q u i t y )

1: Represents Equity Capital only (All VC rounds and PE(Growth Equity))E: Q3’19 - Actual Deal Value ($24.6B) | Q3’19 Actual Deal Count (1,387)Source: RBLT analysis, Pitchbook, CB Insights, other industry sources

www.rblt.com 21

Select Last 6 Months Capital Raise Trends

2 2

6

7

3 3

5

9

3

7

5

2

4

2

8

6 6

2

4 4 4 4

1

5

8

7

13

6

7

6

8

11

12

5

4

8

Capital Markets Institutional Software

Solutions for Corporates

Insurance Tech Lending & Credit Payments Personal Finance and

Investment Management

August / 2019 September / 2019 October / 2019 November / 2019 December / 2019 January / 2020

C o u n t O f C o m p a n i e s R a i s i n g F u n d i n g B y C a t e g o r y

Source: RBLT analysis, Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, PitchbookAll Capital Raises In This Report Are U.S. Based Companies | Deal Size $1M Excluded From Analysis

31 35 46 35 26 26

www.rblt.com 22


$50$74

$494

$543

$201

$48$67

$277

$85

$756

$429

$90

$141

$6

$414

$35

$183

$34$21

$61

$107

$168

$75

$166

$284

$68

$844

$141

$325

$558

136

733

295

22

57 60






F u n d i n g I n v e s t m e n t s I n F i n t e c h C o m p a n i e s B y C a t e g o r y


$699 M $1,219 M $2,238 M $1,665 M $1,270 M $956 M

www.rblt.com 23


7 4

7 5 5 5

11

12

19

13 12 12

9 12

9

12

7 7

1

2

3

2





Angel | Seed Early Stage Late Stage PE Growth

F u n d i n g R o u n d T y p e B y C a t e g o r y


31 35 46 35 26 26

www.rblt.com 24

FinTech Unicorns - Market Map

C a p i t a l M a r k e t s P a y m e n t s

P e r s o n a l F i n a n c e & W e a l t h M g m t . I n s t i t u t i o n a l S W S o l u t i o n s

L e n d i n g & C r e d i t I n s u r T e c h

Source: RBLT analysis, Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook

www.rblt.com 25

M&A Trends


www.rblt.com

$73B$90B

$79B $78B

$141B

$203B

233275 268

290317

243

-350

-250

-150

-50

50

150

250

350

$0B

$50B

$100B

$150B

$200B

$250B

2014 2015 2016 2017 2018 2019

Dea

l Vo

lum

e

Deal Volume (W/ Announced $ Value)

Deal Count (W/ Announced $ Value)

26

Buyer Interest Remains Strong, Led By Strategic

Select Large Transactions

Target

Select Investors

$4.4BLBO

↑ 40 %

$9.8BM&A

↓ 12 %

$3.9BM&A

↓ 1 %

$3.9BLBO

↑ 80 %

$17.0BLBO

↓ 44 %

70% 75% 71% 72% 71% 69%

$6.9BLBO

($) % ∆ YoY

% Strategic Transaction

F i n Te c h M & A A c t i v i t y( C Y ’ 1 4 – C Y ’ 1 9 | P r i v a t e E q u i t y ( B u y o u t / L B O ) , S t r a t e g i c M & A )

Deal Countw/ Announced $ Value

(CY’14 – CY’19)

1,629

Deal Volumew/ Announced $ Value

(CY’14 – CY’19)

> $664B

Deal Countw/ Undisclosed $ Value

(CY’14 – CY’19)

4,326

Note: Chart Represents Private Equity (Buyout/LBO), Strategic M&A Transactions OnlySource: RBLT analysis, Pitchbook, FactSet, CrunchBase, CB Insights, other industry sources

www.rblt.com 27

Select Last 6 Months - M&A Transactions Trend

4

8

4

3 3

2 2

4

2

33

7

2

7

4

1

7

3

2

4 4

2

4 4

5

1

2

5

4

3

1

3






C o u n t O f M & A Tr a n s a c t i o n s B y C a t e g o r y

Source: RBLT analysis, Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, PitchbookAll M&A transactions In This Report Are U.S. Based Companies | Deal Size $1M Excluded From Analysis

23 28 19 17 17 9

www.rblt.com 28

US IPO Market Update

www.rblt.com 29

State of Capital Markets – US IPO Market Update

$7B

$1B

$6B $6B$7B

$10B$11B

$4B

$11B

$16B

$13B

$11B

$7B

$5B

$25B

$11B

$6B

32

8

34 3330

25

52

29

54

44

60

52

34

18

62

39 41

-70

-50

-30

-10

10

30

50

70

$0B

$5B

$10B

$15B

$20B

$25B

$30B

Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19

US IPO's # IPO's

Source: PWC, Renaissance Capital

CY 2015 CY 2016 CY 2017 CY 2018 CY 2019

US IPO Proceeds $30,200M $18,800M $35,600M $46,800M $46,300M

% ∆ YoY - ↓ 38% ↑ 89% ↑ 31% ↓ 1%

www.rblt.com 30

Recent US Public Offerings - Select FinTechs

Offering Date Company Sector Ticker Gross Proceeds ($M) Offer Price 1 WK Return

12/12/2019 Bill.com Institutional Software & Solutions NYSE:BILL $ 223 $ 22.00 2.7%

9/26/2019 Oportun Financial Lending & Credit NASDAQ:OPRT $ 93 $ 15.00 -10.0%

8/15/2019 9F Bank Lending & Credit NASDAQ:JFU $ 85 $ 9.50 19.0%

7/22/2019 AssetMark Financial Personal Finance & Investment Mgt. NYSE:AMK $ 275 $ 22.00 -2.0%

3/3/2019 Tradeweb Capital Markets NASDAQ:TW $ 1,240 $ 27.00 17.0%

3/19/2019 Tiger Brokers Capital Markets NASDAQ:TIGR $ 104 $ 8.00 18.0%

3/8/2019 FUTU Capital Markets NASDAQ:FHL $ 90 $ 12.00 17.5%

12/13/2018 360 Finance, Inc Lending & Credit NASDAQ: QFIN $ 51 $ 16.50 0.0%

10/25/2018 StoneCo Ltd Payments NASDAQ: STNE $ 1,400 $ 24.00 -4.1%

6/15/2018 Avalara Institutional Software & Solutions NYSE: AVLR $ 180 $ 35.00 10.4%

10/25/2018 Pintec Technology Lending & Credit NASDAQ: PT $ 44 $ 11.88 -6.7%

10/12/2018 Anaplan, Inc Institutional Software & Solutions NYSE: PLAN $ 264 $ 17.00 0.0%

6/24/2018 I3 Vertical. Payments NASDAQ: IIIV $ 87 $ 18.00 -17.8%

5/24/2018 Greensky, Inc Lending & Credit NASDAQ: GSKY $ 874 $ 23.00 14.7%

5/23/2018 EVO Payments Payments NASDAQ: EVOP $ 224 $ 16.00 11.2%

3/26/2018 Ceridian HCM Institutional Software & Solutions NYSE: CDAY $ 462 $ 22.00 8.9%

4/27/2018 Docusign Inc Institutional Software & Solutions NYSE: DOCU $ 629 $ 29.00 3.4%

3/16/2018 Zuora, Inc Institutional Software & Solutions NYSE: ZUO $ 154 $ 14.00 -5.0%

2/9/2018 Cardlytics Payments NASDAQ: CDLX $ 70 $ 13.00 37.0%

11/10/2017 PPDAI Group Inc. Alternative lending NYSE: PPDF $ 221 $ 13.00 0.0%

12/26/2017 PagSeguro Digital Ltd Payments NYSE: PAGS $ 2,300 $ 21.50 -4.3%

Source: RBLT analysis, Capital IQ, Bloomberg, Crunchbase, Waters Technology, Nasdaq, Finextra Research, FinSMEs, Pitchbook

www.rblt.com 31

US FinTech Unicorns That Could Get On The IPO Ramp

Company Post Valuation* Raised to Date Last Raise

$5,800M $807M December-19


$7,600M $911M October-19

$2,000M $732M October-19

$35,250ME $1,290M September-19

$3,800M $521M September-19

$3,650M $628M August-19

$1,180M $989M July-19

$2,130M $416M June-19

$4,800M $2,420M May-19

$2,900M $1,100M April-19

$2,100M $478M April-19

Company Post Valuation* Raised to Date Last Raise

$1,620M $482M April-19

$1,200M $925M January-19


$8,050M $525M October-18

$4,000ME $645M August-18

$3,500ME $1,280M August-18

$1,100M $439M August-18

$3,000M $246M May-18

$2,000M $1,360M May-16

$1,700M $345M April-16

$1,010ME $305M May-18

$1,000ME $573M March-18

There are 20 US Fintech Unicorns Ripe To Go Public, Of Which Five Are Newly Minted. Fintech IPOs in 2019 will be affected by public market conditions, and the success of general unicorns lining up to go public (Uber, Airbnb, Lyft, Palantir, Slack)

Note: Raised To Date Figures Includes Equity And Private Debt*: Last Reported Valuation | E: PitchBook EstimatesSource: RBLT analysis, Pitchbook, FactSet, CrunchBase, CB Insights, other industry sources

www.rblt.com 32

The Rosenblatt Di fferenceR o s e n b l a t t ’ s F i n Te c h I n v e s t m e n t B a n k i n g


www.rblt.com 33

Rosenblatt’s Advisory and Execution Services

We provide conflict-free, agency-only equity execution

services to leading institutional investors across US and international markets

As the biggest broker on the NYSE floor, we provide clients access to unique advantages

available to only through floor brokers

With one of the most experienced team of high-touch traders, we deliver

highest quality execution in any market conditions

Trading

Rosenblatt Securities helped pioneer the field of market-structure analysis more than

15 years ago

We give clients the conflict-free intelligence they need to

navigate and thrive in complex, fragmented capital

markets

Market Structure

Our team of veteran equity research analysts provide

expert insights and corporate-access opportunities for

investors in the TMT and FinTech sectors

In addition to our inhouse research capabilities, we also have exclusive relationships

with brokers from over a dozen emerging- and frontier-

markets

Fundamental Research

Our analytics team, led by a veteran former buy-side

quant, approaches execution with a practitioner’s

perspective and applies world-class data science

Our team has developed tools that are used for pre-trade,

trade and post-trade analysis by our internal trading team

as well as by leading investment banks and asset

managers

Trading Solutions

Rosenblatt’s Investment Banking division has a strong track record of

helping innovative FinTechs and increasingly a broader universe of technology, media, and telecom

companies raise private capital, go public, and pursue M&A

Rosenblatt is a thought leader and trusted advisor, uniquely positioned

to connect disruptors and incumbents with customers,

channel partners, and investors

Deep domain expertise and relationships with some of the most

sophisticated and demanding market participants globally are

hallmarks of a team that has been recognized on Institutional

Investor’s FinTech Finance 40 ranking for two years running

Investment Banking

Click For A List Of Recent Transactions

Click To Visit Our Insight Page

https://www.rblt.com/recent-transactions

https://www.rblt.com/recent-transactions

https://www.rblt.com/fintech-insights

www.rblt.com 34

Full Service Advisory Offering

• Mergers & Acquisitions

• Divestitures

• Restructuring

• Fairness Opinion

• Due Diligence

• Valuation

• Transaction Structuring

• Negotiations

• Market Entry

• Exit Strategies

• Peer Group Benchmarking

• Competitive Analysis

• Product Validation

• Channel Partner Development

• Customer Introduction

• Private Equity

• Venture Capital

• Private Debt

• Initial Public Offering (IPO)

• Follow-On Offering

• Private Placement

• Secondary Offering

• Buybacks

Strategic Management Consulting

Capital Raising

Advisory Services

www.rblt.com 35

Strong Value Proposition

Our FinTech Summit on panel with Virtu Financial, XTX Markets, Jane Street,and DRW Holdings

Our Market Structure Summit inconversation with SEC ChairmanJay Clayton

• We pride ourselves in creating solutions that address individual client'sneeds; always shying away from cookie-cutter solutions

• Focused coverage of capital markets and financial technology firms acrossasset classes to address their corporate finance needs

• Trusted advisers on dozens of deals and we go beyond just executing – withour annual Financial Technologies Summit (FTS) and Global Exchange LeaderConference (GELC) we’re committed to advising and educating our clients

• Our deep domain expertise and attention to details uncovers oftenoverlooked complexities and nuances

• Our investment banking, research, and consulting efforts have fostereddeep ties with many of the largest financial services and private equity firmsacross North America, EMEA, and Asia-Pacific

• Our brokerage operations have allowed us to develop extensiverelationships with leading institutional investors and portfolio managers

• Strong relationships with a roster of global bank partners for offerings thatrequire balance sheet commitment and institutional underwriting

Unparalleled Domain Expertise

Deep Strategic & Financial Relationships

Tailored Execution Experience

Our FinTech Summit on panel with R3, Ripple, Noble, Symbiont, and PeerNova

Rosenblatt’s, Vikas Shah namedto FinTech Finance 40 list

Clients call on us for deep-domain expertise in FinTech, close dialogues with an extensive roster of strategic and financial institutional investors and proven execution experience. We have the track record of working on exclusive engagements as well co-managers with other well-respected industry underwriters

www.rblt.com 36

Vikas Shah – Institutional Investor’s Fintech Finance 40 (2018 & 2019)

Click Here To Read The Full Coverage

Vikas ShahManaging DirectorInvestment Banking [email protected]

Vikas leads Rosenblatt’s FinTech investment banking initiative.With over two decades of experience in financial services, he hasextensive experience as a banker as well as a principal investor.Institutional Investor’s recently ranked Vikas on the FinTechFinance 40 list for second year in a row. Vikas was formerly aninvestment banker with Credit Suisse and VP of principal strategicinvestments with AIG. He holds an MBA degree from NYU’s SternSchool of business

https://www.rblt.com/news/rosenblatt-shah-named-to-fintech-finance-40-list-2

www.rblt.com 37

Seasoned FinTech Advisory Board

Akbar PoonawalaPivot Investment PartnersCo-Founder

Neeraj SahaiDun & Bradstreet InternationalPresident

Bill StephensonAIR Summit HoldingsFounder

Raymond TierneyStrategic Advisor & Non-Executive Board Member

Greg TusarTagomiCo-Founder

Comprised of a distinguished group of veterans from financial services, Rosenblatt's FinTech Advisory Board helps the bankingteam stay on top of cutting-edge industry developments, expand its network and deliver powerful insights

Vivian MaeseCadwaladerPartner

Tom AscherQuantitative BrokersExecutive Chairman

Peter ChirlianArmanta (IBM Company)Chief Executive Officer

Christian KatzSCXExecutive Chairman

www.rblt.com 38

Rosenblatt Serving as Exclusive Advisor to Exablaze

Rosenblatt’s Investment Banking division has a strong track record of helping innovative FinTechs and increasingly a broader universe of technology, media, and telecom companies raise private capital, go public, and pursue M&A. Rosenblatt is a thought leader and trusted advisor, uniquely positioned to connect disruptors and incumbents with customers, channel partners, and investors

• December 2019 – Rosenblatt Securities is pleased to be serving as the exclusive strategic andfinancial advisor to Exablaze in its agreement to be acquired by Cisco Systems (NASDAQ: CSCO), asynergistic deal between two world-class companies with a track record of developing anddeploying cutting-edge solutions in networking and communications. Founded in 2013, Exablazeis an Australian designer and manufacturer of advanced network devices aimed at reducinglatency and improving network performance

• Established in Australia in 2013, Exablaze is a global provider of ultra-low latency networkingequipment with offices in Sydney (Australia), New York (USA), London (UK) and Shanghai (China).Exablaze primarily builds FPGA-based network devices which are targeted at a wide range ofapplications in financial trading, big data analytics, high-performance computing,telecommunications and datacenters. For more information on Exablaze, please visitwww.exablaze.com.

Overview of Transaction

Overview of Exablaze

“We are extremely excited to be a part of Cisco, a proven global leader who will help push our low-latency technology into new markets. Rosenblatt’s insights and advice throughout a tightly runprocess were instrumental in Identifying the perfect strategic partner and structuring the righttransaction for the next chapter of the Company’s growth,…”

– Greg Robinson, Chairman and Co-Founder of Exablaze

Click here for Exablaze’s announcement of the transaction, as well as Cisco’s announcement here

“We’re simply thrilled to have advised Exablaze on its combination with Cisco. Exablaze’s market-leading technology will benefit from Cisco’s larger product and sales platform helping Exablaze’sproducts penetrate financial services more deeply and expand into other industry verticals,…”

– Vikas Shah, Rosenblatt’s Head of FinTech Investment Banking

https://exablaze.com/blog/blog-cisco-acquiring-exablaze.html

http://www.exablaze.com/

https://exablaze.com/blog/blog-cisco-acquiring-exablaze.html

https://blogs.cisco.com/news/cisco-corporate-news-december-2019

www.rblt.com 39

Demonstrated Ability to Execute Marque M&A Mandates

S e l e c t M e r g e r s & A c q u i s i t i o n s Tr a n s a c t i o n s

Exclusive Advisor

Acquisition of Minority Stakes in

Advisor

Acquisition of

ETF and Wholesale Market Making Business

Advisor

Acquisition of Acquisition of

Advisor

Designated Market Maker (DMM) Trading Business

Exclusive Advisor to receiver of the

AlphaMetrix Estate

Sale of Technology Assets to

Introducing Agent

Acquisition of Acquisition of

Exclusive Advisor

Acquisition of

Exclusive Advisor

Acquisition of

Exclusive Advisor

Exclusive Advisor to Exablaze

Definitive Agreement to Acquire

Our solid track record of executing a wide range of private and public M&A mandates highlights our deep understanding of the FinTech ecosystem and our ability to capture nuances in client stories that are often overlooked by investors

www.rblt.com 40

Proven Track Record In Private Capital Raise…

S e l e c t P r i v a t e M a r k e t F i n a n c i n g M a n d a t e s

Receives Series-D Growth

Investment From

Advisor

Receives Growth

Investment From

Advisor

Receives Debt Financing From

Advisor

Receives Series-B Growth Investment From

Advisor

Receives Series-B Growth Investment

From

Advisor

Receives Growth Investment & Merges With

Placement Agent

Lead Investor

www.rblt.com 41

And Provide Liquidity Via Public Markets

S e l e c t P u b l i c M a r k e t F i n a n c i n g M a n d a t e s

Initial Public Offering

Co-Manager

$290,605,000


Co-Manager

$361,000,000


Co-Manager

$390,000,000

Secondary Offering

Co-Manager

$20,002,500

Secondary American Depositary Shares

Offering

Co-Manager

$116,000,000

Share Repurchase Program

Execution Specialist



Secondary Offering

Co-Manager

$235,000,000

Follow-On Offering

Co-Manager

$ 726,090,876



www.rblt.com 42

Select Companies From Rosenblatt’s Annual FinTech Summit

Rosenblatt’s annual Financial Technology Summit has showcased more than 150 fast-growing FinTech companies in the past decade attracting senior executives from the financial services and the institutional investment community

Capital Markets

Payments

Lending & CreditPersonal Finance & Invest. Mgmt.

InsurTech Institutional Software

Blockchain AI / ML Cyber Security

Click to visit our event page!

https://www.rblt.com/fts2019

www.rblt.com

Contact:

V i ka s S h a hI n v e s t m e n t B a n k i n g

2 1 2 - 6 0 7 - 3 1 0 0v s h a h @ r b l t . c o m

Copyright 2020. Rosenblatt Securities Inc. All rights reserved.

Rosenblatt Securities Inc. seeks to provide and receive remuneration for Agency Brokerage, Market Structure Analysis, Macro and otherSector Analysis and Investment Banking Advisory Services. Rosenblatt Securities Inc. may, from time to time, provide these services tocompanies mentioned in this analysis. This material is not a research report and should not be construed as such, and does not containenough information to support an investment decision. Neither the information contained herein, nor any opinion expressed herein,constitutes the recommendation or solicitation of the purchase or sale of any securities or commodities. The information herein wasobtained from sources which Rosenblatt Securities Inc. believes reliable, but we do not guarantee its accuracy. No part of this material maybe duplicated in any form by any means. Member NYSE, FINRA, SIPC.

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FinTech Investment Banking... · 2020. 2. 4. · TEV / Sales TEV / EBITDA EBITDA Margins Price / Earnings Company Price Off 52 Wk High / Low. 13 Market Valuations –Banks | Alternative