The activity in the payments industry shows no signs of a summer slowdown. There is a wave of Mergers, Acquisitions and IPOs, with plenty of payments companies looking to ride the wave. This momentum has led to the need for payments companies to grow at rapid paces which is fueling M & A activity. Here is a snapshot of the IPO market:
Ayden
Let’s start off with behemoth Ayden whose payment processing system is used by Uber, Facebook and Netflix with eBay on the way. Touted as one of Europe’s largest technology IPOs, Ayden initially priced at 240 euros per share giving it a valuation of approximately 7.1 billion euros. On the first day of trading, June 13, 2018, shares soared 90% to 455 euros bringing the valuation to 13.4 billion euros. Founded in 2006, Ayden is traded on the Euronext Amsterdam Exchange and is currently selling at 479.50 euros per share. (AMS: AYDEN)
i3 Verticals
i3 Verticals, an integrated payments processor focused on SMB, filed with the SEC on May 25, 2018 to raise $86 million via their IPO. Founded in 2012 by a seasoned payments team, i3’s growth is attributable to several acquisitions and their focus on select core verticals. Their initial share price was $13 with shares soaring above $18 on the first trade of trading, June 21, 2018. (NASDAQ: IIIV)
EVO Payments
EVO Payments, a payments processor with a robust partner program of IPOs, ISV, and gateway providers announced its IPO in May of 2018. Founded in 1989, EVO has operations in 50 markets. EVO raised over $200 million via their IPO. Shares were initially priced at $16 and opened at $20.05 on May 23, 2018. EVO is currently trading at $20.59. (NASDAQ: EVOP)
Priority Payments
Priority Payments, a leading provider of B2C and B2B payment processing solutions founded in 2005, will combine with M I Acquisitions (NASDAQ: MACQ, MACQU, MACQW) to form Priority Technology Holdings, Inc., a publicly traded company. Priority differentiates itself via its proprietary platforms: MX platform for B2C and CPX platform for B2B, and is the 7thlargest non-bank merchant acquirer in the U.S. M I is expected to combine with Priority at a value of over $1 billion and the transaction will close soon pending approval by M I stockholders.
MAPP’s Outlook
From the start of 2018, MAPP Advisors has seen an increase in the demand for its M & A advisory services and has a record number of deals in the works. MAPP is advising several qualified buyers looking for best in class software, payment facilitation, and vertically focused companies looking to grow exponentially based on current market opportunities. Contact MAPP to learn more about how our M & A expertise and opportunities will benefit your payments company.
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