Who Are The 5 Biggest Fintech Dealmakers?

This has been a bumpy year for various tech markets. But if there’s one vertical that’s been weathering the storm, it’s fintech. Exactly a decade on from 2012, the year that, in the words of a recent TechCrunch article, “fintech morphed into a sustained movement that would drastically changed how most people manage their money”, the sector has managed to defy the downturn.

Hampleton’s new fintech sector report, which you can download in full here, provides an overview that makes encouraging reading for founders within this space. It reveals that, in the first half of 2022, as other industries experienced turbulent market corrections, fintech M&A activity was on the up. Indeed, 591 deals were recorded in that period, representing a 46% increase compared to the equivalent period in 2021. That’s impressive, considering 2021 saw a spike in activity across all industries as the pandemic-stricken world became newly reliant on digital solutions. Hampleton’s fintech report also breaks down the specific subsectors that have been attracting investments and acquisitions. For example, crypto/blockchain companies and companies which offer financial management solutions. 

But which companies have been the biggest movers and shakers in fintech, whose prolific takeovers have helped steer the course of the industry since just before the pandemic right through to the current year?

Our report lays out the eight most prolific acquirers and many of the fintech companies they’ve targeted. It’s well worth reading it all in full (it’s only 15 pages), but as a taster, let’s consider the top five biggest dealmakers since 2019.

Making seven fintech acquisitions in the past 30 months, MRI Software is joint-third on our list of prolific dealmakers. Founded way back in 1971, MRI is perhaps one of the most well-established tech companies that most people haven’t heard of. The Cleveland, Ohio based company specialises in real estate software solutions, such as lease management, portfolio analytics and commercial property marketing tools. 

MRI’s acquisitions have reflected its core expertise. These include the takeover of the real estate and workplace solutions division of Californian software firm Trimble – a move motivated by MRI’s desire to provide invoicing, revenue management, and other solutions in line with the rapid workplace changes that have unfolded since the pandemic. 

Headquartered in Raleigh, North Carolina, insightsoftware has also secured seven fintech deals since 2019, putting it joint-third in our list. The acquisitions have bolstered an already sprawling suite of analytics and performance management products from insightsoftware.

The company has acquired London firm Legerity, specialists in accounting rules software. This canny move allows insightsoftware to offer clients SaaS tools to handle large volumes of financial data and more efficiently meet statutory accounting reporting requirements. Another game-changing acquisition for insightsoftware targeted Clausion – a major step in insightsoftware’s plan to scale across Europe. 

Based in Finland, Clausion has made its name as a purveyor of cloud-based corporate management solutions, with an emphasis on handling financial data. The deal highlights how tech companies like Clausion continue to be attractive acquisition prospects as more and more businesses seek swift, non-siloed, digitalised budgeting solutions.

The third company in joint-third place is Cboe Global Markets, a company dating back to the early 70s which operates equities, options, futures and FX markets across the world. Cboe has a number of claims to fame in the financial world, including being the creator of the first listed-options marketplace and the electronic communication network (ECN) for the institutional FX market.

Far from resting on its laurels, Cboe has been aggressively expanding by way of significant purchases. These include the takeover of NEO, a Canadian fintech organisation that encompasses a securities exchange. The move increased Cboe’s reach in North America, and – in the words of the CEO – brings the company “one step closer to our vision of building one of the world’s largest global derivatives and securities trading networks.” 

Business to business payment solutions provider Payroc was founded in 2003. So, while not being quite as old as PayPal, the company is still one of the longest-standing names in the industry. The Tinley Park, Illinois company inked nine deals during the time period of our report, consolidating its position in the fintech world by acquiring other payment processing firms.

One is Iroquois Merchant Services, a Nashville-based provider of electronic payment services for companies, NGOs and other entities. Its specialisms have included high-risk merchant processing, mobile payments, and fintech security solutions, which have now been folded into Payroc’s range of capabilities. Payroc also recently acquired Worldnet, which is based in Johns Creek, Georgia, and which provides payment processing for independent software vendors (ISVs). Worldnet hailed the acquisition as the first step in deploying their technology to help ISVs around the world unify their payment channels.

The three companies in joint-third place inked seven deals each, while Payroc made nine takeovers. But streets ahead in first place is Oslo-based software giant Visma, with 17 transactions under its belt. As our fintech market report notes, “Visma has been expanding its geographic reach in the EMEA region by swiftly acquiring targets.”

One target was Declarando Asesores, a fast-growing accountancy and tax software company which helps freelancers in Spain to handle the often-complicated business of invoicing, bookkeeping and taxes. This, to quote Visma, was part of its plan to “be a trusted partner for European entrepreneurs”.

Another of Visma’s many transactions in the fintech space was its takeover of Lyanthe, an invoice processing software company based in Utrecht, Netherlands. Founded by accountants, the company provides a straightforward SaaS solution for invoicing and managing finance-related workflows. By assimilating its services, Visma is able to provide a “complete ecosystem” for accountancy clients.  

For more details on recent deals made within the fintech sector, and our analysis of megatrends that are influencing investors and dealmakers, download our full report free, right now.