Fintech M&A has continued at an unprecedented pace, with 2019 shaping up to be the biggest year yet in terms of total deal value. The activity comes not only from private equity firms making investments in start-ups, but also from legacy financial technology vendors and financial firms acquiring innovative fintechs as a way to add to their own tech capabilities.
In just the first few months of 2019, we have already witnessed three of the eight biggest fintech deals ever, according to research from S&P. As we have noted in the past, there is an escalating arms race among incumbents to add to their ever-increasing tech arsenals.
Indeed, S&P has noted these deals are becoming “defensive plays,” as the largest incumbents seek to gain any advantage in an increasingly competitive landscape. We predict that 2019 will add a few more deals to the “biggest ever” list before it’s all over.