FinTech M&A Activity Lower Middle Market
FinTech M&A by Year – Lower Middle Market (In Millions of USD)
Total Deal Size in ($M) # of Deals
189
The FinTech deal volume in the lower middle market for 2024 reached $3.7 billion, surpassing the total deal volume of 2023. Deal activity remained robust, with Q3 2024 emerging as the most productive quarter, boasting a 39% surge in deal volume compared to Q3 2023. This great rebound in FinTech M&A activity appears to be gaining even more momentum as we enter 2025. Central banks' interest rate cuts and a slowdown in inflation seem to have bolstered buyer confidence.
126
103
87
80
Key trends:
$4,740
$8,219
$5,906
$3,490
$3,748
• Focus on Payment Technology: Payments companies are actively acquiring peers to strengthen their technology stacks and expand their service offerings. ‘Payment Tech’ contributed approximately 20% of total transaction volume in 2024. • Increased Activity in Banking Technology: To keep pace with digital transformation, banks and legacy financial institutions are acquiring FinTech startups to modernize their offerings. Transactions in ‘Banking Tech’ also accounted for approximately 20% of the total transactions volume in 2024. In short, interest rate cuts, improved economic conditions, and strong demand for digital transformation among traditional financial institutions continue to drive FinTech M&A activity through 2025.
2020
2021
2022
2023
2024
45 44 Total Deal Size in ($M) # of Deals FinTech M&A Volume by Quarter – Lower Middle Market (In Millions of USD) 49 50
38
27 28
26
25
24 24 23 25
40
21 18
20
17 20
16
Source: Pitchbook as of 31 December 2024. Data consists of transactions where deal value was disclosed. Note: Companies valued between $5 - $150 million were considered lower middle market. Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2023 2024
15
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