Trendspotting: Payments mergers and acquisitions (M&As) have ramped up recently. Here are a few that made headlines this week:
And last week, we covered Global Payments’ EVO acquisition, an all-cash deal that valued EVO at a whopping $4 billion.
Key context: There were 66 payments-related M&As in the first half of 2022, compared with 59 in the same period last year, per data from The Strawhecker Group (TSG) cited by Payments Dive.
There were 127 deals collectively worth $76.6 billion in 2021. While impressive, it pales in comparison to 2019’s record $169.4 billion in M&As. A series of megadeals that year—including FIS’ Worldpay acquisition and Fiserv’s First Data purchase—significantly consolidated the payments space.
What this means: Economic uncertainty may be fueling an uptick in payments-related M&A deals—here’s why.
What’s next? TSG project manager Zach Spellman expects more M&A activity through the year, but the number of deals will roughly match last year.
Payment processor Paya, for example, has expressed interest in completing “larger” M&As this year, CEO Jeff Hack said during the company’s earnings call. As the year progresses and economic uncertainty persists, more firms may do the same: 21% of US finance decision-makers said merging or acquiring businesses will be a strategy they employ to drive revenue growth in 2022, per BillingPlatform.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
11 Times SquareNew York, NY 100361-800-405-0844