# QUARTERLY DEALS & MARKET UPDATE Evolve Monthly Ban · PDF file Evolve Capital...

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Bank Technology / Solutions

Specialized investment bankers at the intersection of finance and technology

QUARTERLY DEALS & MARKET UPDATE

July 2020

Credit Scoring / Data

Software Solutions / Services

Blockchain

Mortgage / Real Estate Tech

Core Processing

Evolve Capital Partners; Deals & Market Update – Bank Technology / Solutions 2

ABOUT EVOLVE CAPITAL PARTNERS

Evolve Capital Partners (Evolve) is a specialized investment bank focused on businesses serving

industries at the intersection of finance and technology.

We are dedicated investment bankers focused on evolving industries, and we support sustainable growth

through transformational M&A / financing transactions.

Evolve is a dedicated, creative, and fully independent investment bank that advises private and public

companies on merger, divestiture and acquisition transactions, and capital raising through private

placements.

We also provide structured financial advisory services — our investment banking practice provides a

comprehensive suite of solutions to businesses.

With over 30 engagements executed by its leaders, Evolve has served as a proud partner, bringing

renewed value to companies at the intersection of finance and technology.

Founded in 2012 and based in New York, NY.

HIGH-TOUCH INVESTMENT BANKING

Few investment banks have transaction experience across both corporate and asset finance.

Our Clients Investment Banking Advisory

Corporations VC & PE Backed

Companies M&A

Capital Raises and Asset

Finance

Management

Teams

Independent

Directors / Boards

Strategic

Alliances

Financial Restructuring

Industry Focus

Finance and Technology Firms

Securities Specialty Finance Payments BPO

Financial Services Enterprise Software Lending IoT

Financial Management Analytics Insurance B2B

Overview of Evolve Capital Partners

Evolve Capital Partners; Deals & Market Update – Bank Technology / Solutions 3

Capabilities

M&A Advisory

Sales / Recaps

Acquisitions

Divestiture

Strategic Advisory

Financing

Private Placements

Debt Capital

Restructuring

Payments

Bank Technology /

Solutions

BPO

Enterprise Software /

Data & Analytics

Healthcare Tech Financial Management

Solutions

Specialty Finance /

Alternative Lending

Securities Insurance

We Focus Exclusively on Finance and Technology-Related Firms

Evolve Capital Partners; Deals & Market Update – Bank Technology / Solutions 4

47.1x

41.7x

39.5x

30.1x

15.9x

Credit Scoring / Data

Core Processing

Blockchain

Mortgage / Real Estate

Tech

Software Solutions /

Services

Industry Stock Market Performance of Evolve Sector Coverage

Market Summary and Key Multiples

Data as of July 1, 2020

Source: Pitchbook

Industry-wide Multiples and Subsector Multiples

Sector 2021E Price / Earnings Multiples

Bank Technology / Solutions

2021E Price / Earnings Multiples

Indexed Price Performance *

Sector 3 Months 1 Year 3 Years

Bank Tech / Solutions 45.0% 14.8% 50.1%

BPO 29.6% (15.7%) 20.0%

Enterprise Software / Data & Analytics 48.3% 15.0% 70.0%

Financial Management Solutions 46.3% 20.5% 104.2%

Healthcare Tech 35.2% 28.4% 36.2%

Insurance 24.0% (11.2%) 12.2%

Payments 60.0% 2.9% 76.4%

Securities 24.7% (4.4%) 9.1%

Specialty Finance / Alternative Lending 44.8% (24.0%) 1.3%

* Equal weighting method.

39.6x

38.3x

37.8x

37.1x

36.2x

28.3x

22.1x

18.8x

16.0x

Payments

Enterprise Software / Data

& Analytics

Financial Management

Solutions

Bank Tech / Solutions

Healthcare Tech

BPO

Securities

Insurance

Specialty Finance /

Alternative Lending

Evolve Capital Partners; Deals & Market Update – Bank Technology / Solutions 5

Blockchain

Growth Rates:

Stock % of 52- Market Enterprise LTM Revenue: Earnings LTM Margins: EV / Revenue EV / EBITDA Revenue

Price Wk. High Value Value Revenue EBITDA CY 2020 CY 2021 LT Gross EBITDA LTM CY 2020 CY 2021 LTM CY 2020 CY 2021

Intel $58.81 84.9% $249,002 $268,118 $75,732 $37,420 0% 4% 31% 60% 49% 3.5x 3.8x 3.6x 7.2x 8.1x 8.0x

PayPal Holdings $177.43 99.5% $208,300 $206,125 $18,262 $3,468 15% 14% 10% 44% 19% 11.3x 11.6x 10.2x 59.4x 42.7x 37.4x

International Business Machines $118.54 74.7% $105,251 $162,969 $76,535 $15,612 (3%) (4%) (6%) 48% 20% 2.1x 2.1x 2.2x 10.4x 8.9x 9.5x

American Express $94.05 68.1% $75,708 NA $30,994 NA 51% (14%) 6% NA NA NA NA NA NA NA NA

MEAN 16% 0% 10% 50% 30% 5.7x 5.8x 5.3x 25.7x 19.9x 18.3x

MEDIAN 8% (0%) 8% 48% 20% 3.5x 3.8x 3.6x 10.4x 8.9x 9.5x

Source: Pitchbook

Stock Comparables – Bank Technology / Solutions Sub-Sectors

(All figures in millions of USD, except per share data. Data as of July 1, 2020)

Core Processing

Growth Rates:

Stock % of 52- Market Enterprise LTM Revenue: Earnings LTM Margins: EV / Revenue EV / EBITDA Revenue

Price Wk. High Value Value Revenue EBITDA CY 2020 CY 2021 LT Gross EBITDA LTM CY 2020 CY 2021 LTM CY 2020 CY 2021

Fidelity National Information Services$136.86 86.5% $84,557 $103,576 $11,354 $3,546 22% 20% (47%) 36% 31% 9.1x 10.0x 8.3x 29.2x 24.6x 19.3x

Fiserv $98.50 78.8% $65,944 $88,719 $12,454 $4,234 150% (4%) (4%) 46% 34% 7.1x 6.1x 6.3x 21.0x 21.6x 16.1x

Jack Henry and Associates $183.83 94.3% $14,084 $14,030 $1,680 $553 4% 9% 5% 41% 33% 8.4x 8.8x 8.1x 25.4x 27.2x 25.1x

Temenos $155.87 84.2% $11,060 $12,064 $958 $343 16% (3%) 9% 80% 36% 12.6x 12.3x 12.7x 35.2x 30.7x 28.4x

Q2 Holdings $87.64 93.3% $4,663 $5,023 $337 ($41) 32% 25% NA 47% (12%) 14.9x 15.8x 12.7x NMF NMF NMF

Oracle Financial Services Software $37.68 75.8% $3,239 $2,709 $683 $320 3% (13%) 8% NA 47% 4.0x 3.7x 4.3x 8.5x NA NA

Bottomline Technologies $50.01 87.4% $2,197 $2,214 $440 $52 3% 5% NA 57% 12% 5.0x 5.2x 4.9x 42.3x 23.3x 24.6x

Computer Services $53.49 97.3% $1,479 $1,417 $284 $89 NA NA 20% NA 31% 5.0x NA NA 16.0x NA NA

GLORY $22.55 71.5% $1,370 $1,139 $2,061 $276 (5%) (5%) (2%) 39% 13% 0.6x 0.6x 0.6x 4.1x NA NA

Silverlake Axis $0.17 41.6% $445 $312 $133 $57 (6%) 12% (26%) 62% 43% 2.4x 2.2x 1.9x 5.5x 5.2x 4.8x

Intellect Design Arena $1.47 34.5% $194 $155 $196 $14 12% (18%) NA 28% 7% 0.8x 0.7x 0.8x 11.3x NA NA

Crealogix Holding $99.87 80.5% $140 $132 $100 ($1) 5% 6% NA 22% (1%) 1.3x 1.2x 1.2x NMF 20.0x NA

MEAN 21% 3% (5%) 46% 23% 5.9x 6.1x 5.6x 19.9x 21.8x 19.7x

MEDIAN 5% 5% 1% 44% 31% 5.0x 5.2x 4.9x 18.5x 23.3x 22.0x

Credit Scoring / Data

Growth Rates:

Stock % of 52- Market Enterprise LTM Revenue: Earnings LTM Margins: EV / Revenue EV / EBITDA Revenue

Price Wk. High Value Value Revenue EBITDA CY 2020 CY 2021 LT Gross EBITDA LTM CY 2020 CY 2021 LTM CY 2020 CY 2021

Fair Isaac $423.57 97.0% $12,285 $13,201 $1,226 $316 11% 5% 24% 71% 26% 10.8x 11.5x 10.9x 41.8x 38.5x 33.0x

Equifax $173.57 96.4% $21,069 $24,250 $3,619 $828 3% 5% (21%) 57% 23% 6.7x 6.9x 6.6x 29.3x 20.6x 20.2x

TransUnion $87.84 86.8% $16,672 $20,171 $2,724 $979 14% (2%) 27% 67% 36% 7.4x 7.6x 7.8x 20.6x 19.2x 21.0x

Experian $35.39 93.6% $32,430 $36,573 $5,179 $1,620 NA (1%) (5%) 49% 31% 7.1x 7.2x 7.3x 22.6x 20.8x 20.9x

Intrum $18.65 58.9% $2,260 $7,708 $1,696 $258 2% 5% NA 38% 15% 4.5x 4.9x 4.7x 29.9x 9.1x 12.4x

MEAN 8% 3% 6% 57% 26% 7.3x 7.6x 7.4x 28.8x 21.6x 21.5x

MEDIAN 7% 5% 10% 57% 26% 7.1x 7.2x 7.3x 29.3x 20.6x 20.9x

Mortgage / Real Estate Tech

Growth Rates:

Stock % of 52- Market Enterprise LTM Revenue: Earnings LTM Margins: EV / Revenue EV / EBITDA Revenue

CoStar Group $718.63 96.2% $28,285 $27,261 $1,463 $432 17% 14% 44% 80% 30% 18.6x 19.6x 17.3x 63.2x 54.8x 54.7x

Zillow Group $58.60 87.5% $12,994 $12,712 $3,415 ($168) 96% 32% NA 40% (5%) 3.7x 4.9x 3.7x NMF NMF NMF

Black Knight (US) $72.78 93.5% $11,430 $12,999 $1,185 $528 6% 0% 9% NA 45% 11.0x 11.0x 11.0x 24.6x 22.3x 22.5x

Fidelity National Financial $30.24 61.4% $9,042 $10,890 $8,359 $1,243 9% (13%) 13% NA 15% 1.3x 1.3x 1.5x 8.8x 6.6x 14.3x

RealPage $65.47 93.8% $6,682 $7,757 $1,031 $220 13% 15% 27% 56% 21% 7.5x 7.9x 6.8x 35.3x 27.6x 26.3x

CoreLogic $66.44 97.0% $5,276 $6,888 $1,788 $394 (2%) (1%) 4% 51% 22% 3.9x 3.9x 4.0x 17.5x 14.0x 12.7x

Redfin $41.70 98.4% $4,107 $4,059 $861 ($60) 57% 7% NA 18% (7%) 4.7x 5.3x 5.0x NMF NMF NMF

Real Matters $19.39 99.0% $1,647 $1,570 $412 $53 NMF NMF NA 33% 13% 3.8x 15.4x 6.9x 29.6x 55.0x 22.3x

Stewart Title Guaranty Company $31.51 71.4% $746 $669 $1,981 $158 (0%) (6%) 15% NA 8% 0.3x 0.4x 0.4x 4.2x 3.9x 6.5x

Altisource Portfolio Solutions $14.61 62.0% $227 $424 $600 $69 (24%) (38%) NA 23% 11% 0.7x 0.7x 1.1x 6.2x 6.

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