Financial Technology M&A Update – June 2025

North America Commands Leadership of the Global Financial Technology M&A Market

The global Financial Technology sector has showcased significant fortitude amid turbulent economic and regulatory conditions, demonstrated by healthy levels of merger and acquisition (M&A) and equity financing activity to date. However, geography has played an increasingly pertinent role in the space as foreign exchange (FX) rates and local regulatory policies have impacted acquirer interest and valuations at a regional level. North America has undoubtedly led capital markets activity in the Financial Technology sector through year to date (YTD) 2025. Sector dealmaking in North America has been primarily supported by a relatively strong U.S. dollar. Additionally, deregulatory initiatives under the Trump administration will likely serve as a catalyst for future sector transaction activity in the U.S.

U.S. Dollar Strength, Regulatory Shifts Provide Favorable Backdrop for Stateside Financial Technology M&A

U.S. dollar strength and recent federal deregulatory policies are anticipated to continue supporting heightened acquirer appetite for stateside financial technology businesses. Of note, the Nominal Broad U.S. Dollar Index—a common FX indicator against major U.S. trade partners—reached 124.5 in April 2025, according to the St. Louis Federal Reserve.¹ While this marks a slight dip month-over-month, the index value in April 2025 remained well above 2011’s low of 86.3 and just below January 2025’s peak of 129.0. As a result, U.S.-based acquirers have gained substantial leverage in cross-border transactions and U.S.-based targets have commanded premium valuations compared to foreign competitors. The Trump administration’s aggressive deregulatory initiatives have also produced a more conducive operating environment for U.S. financial technology businesses. These initiatives aim to rescind anti-competitive regulations in the private sector. Notably, President Trump signed an executive order on April 9, 2025, requiring federal agencies to consult with the Federal Trade Commission (FTC) to identify and eliminate statutes that reduce competition, entrepreneurship, and innovation, according to The White House.² Further consolidation in the U.S. Financial Technology sector is expected as limited regulatory barriers will likely create competition for high quality assets.

North American and European Financial Technology M&A Activity Buttress Sector Dealmaking

Global Financial Technology M&A activity has shown steady growth, driven by rampant consolidation in the North American and European markets. There have been 400 sector transactions announced or completed YTD, representing an increase of 5% year-over-year (YOY). While deal volume will likely not meet 2021’s peak, acquisition activity to date is on pace to exceed full year 2024—the second-highest level on record. North America-based targets have continued to account for the lion’s share (38.8%) of sector M&A deals YTD, followed by Europe (34.8%) and Asia (17%). North America’s leadership of Financial Technology M&A can be attributed to its market size and fragmentation. Recent federal deregulatory measures in the U.S. will likely further this fragmentation, providing a strong backdrop for continued consolidation. However, several emerging markets have yielded elevated transaction activity as underbanked regions have demanded targeted solutions in lieu of traditional banks. This has included Oceania and Africa, which have seen YTD deal flow rise by 200% and 116.7% YOY, respectively.

Sector participants with recurring revenue, balance sheet-light business models, and low customer acquisition costs have continued to incite strong buyer interest from strategic and private equity (PE)-backed acquirers. Of note, Flexbase Technologies acquired Maza Financial in April 2025 for an enterprise value of $40 million. Maza, a consumer banking software provider, reported YOY recurring revenue growth of 290% in 2024 with 250,000 customers, according to TechCrunch.³ Strategic buyers have comprised the majority (68.3%) of sector deals YTD, led by private strategics (45.8%) vertically integrating competitors to bolster technology stacks. Sponsors have maintained their presence in the sector. Financial acquirers have accounted for 31.8% of Financial Technology sector transactions to date, primarily focusing on add-on acquisitions (23.5%). Ample dry powder and limited partner (LP) pressure to generate returns will likely serve as catalysts for PE transactions in the space throughout 2025. Notably, 2024 global buyout distributions to LPs as a percentage of net asset value fell to their lowest annual level (11%) in the past 10 years, according to Bain & Company.⁴

At a subsector level, the Payments space has gained elevated M&A attention from strategic and financial buyers. Global Payments M&A volume has jumped 27.7% YOY to comprise the lion’s share (30%) of total sector deals YTD. Mirroring broader sector trends, North American payments businesses have accounted for the bulk (30%) of global subsector transactions to date. Buyers in this subsector have increasingly targeted integrated payments providers to offer a full suite of financial management solutions. 1060 Capital, LLC has witnessed this trend first-hand, advising U.S.-based Allied Payment Network on its sale to Autobooks in May 2025. Terms of the transaction are confidential. Allied Payment Network partners with banks and credit unions to offer small businesses and consumers online bill payment solutions. The acquisition adds business bill payment capabilities to Autobooks’ platform, deepening the company’s relationships with financial institutions.

Financial Technology M&A Multiples Moderate, North American Valuations Outpace International Market

Purchase multiples in the Financial Technology M&A market have moderated. Through YTD 2025, global sector purchase multiples have averaged 4.4x EV/LTM Revenue. This represents a slight compression compared to the prior year period (5.0x EV/LTM Revenue) and a deeper decline compared to the sector’s five-year average of 5.2x EV/LTM Revenue. However, select regions have elicited premium valuations. Sector transaction targets in North America have garnered the highest average purchase multiple YTD at 6.4x EV/LTM Revenue. A healthy U.S. dollar in the FX market and waning inflation have enabled many North American participants to command robust M&A multiples. European financial technology providers have drawn the second-highest average purchase multiple to date (5.2x EV/LTM Revenue). This has been driven by a robust Euro, which has tracked the U.S. dollar value, and an expanding European Software market.

Democratization, digitization, and globalization of the Finance ecosystem have remained key drivers of valuations in the Financial Technology M&A market. While sector purchase multiples have heavily depended on targets’ base operation region, select players with international exposure have garnered robust valuations. Notable sector transactions exemplifying acquirers’ globalization initiatives are outlined below.

• Shift4 Payments to Acquire Global Blue Group (February 2025, $2.4 Billion, 4.5x EV/LTM Revenue) – In February 2025, American payments provider Shift4 Payments (NYSE:FOUR) announced its acquisition of Switzerland-based Global Blue Group (NYSE:GB) for an enterprise value of $2.4 billion, equivalent to 4.5x EV/LTM Revenue. The enterprise value represents a 15% premium to Global Blue’s closing share price as of February 14, 2025, according to a press release.⁵ Global Blue offers a specialty payments platform for retail brands across Europe, Asia, and South America. The acquisition is expected to enhance Shift4’s integrated payments solutions with unified commerce capabilities and add more than 400,000 retail and hospitality locations to its customer base. The transaction demonstrates U.S. acquirers’ affinity for globalization via cross-border M&A in the Payments subsector. “It fits perfectly in the Shift4 playbook: delivering an enormous volume conversion opportunity while unlocking significant new revenue opportunities and capabilities that open entirely new markets for us. Integrating Global Blue into our unified payments platform positions Shift4 as a leading unified commerce payment provider around the world,” said Shift4 President, Taylor Lauber, in the press release.
• Clearwater Analytics Acquires Enfusion (January 2025, $1.5 Billion, 7.7x EV/LTM Revenue) – U.S.-based Clearwater Analytics (NYSE:CWAN) acquired Enfusion (NYSE:ENFN) in January 2025 for an enterprise value of $1.5 billion or 7.7x EV/LTM Revenue. Headquartered in Chicago, Illinois, Enfusion develops Software-as-a-Service solutions for the Investment Management vertical in the U.S., Asia, Africa, and the Middle East. The company’s primary offering consists of a portfolio management system, enabling finance professionals to analyze aggregated or decomposed portfolio data. The acquisition accelerates Clearwater’s initiative to build the first cloud-native, integrated platform for the Investment Management space. Clearwater also expects that its total addressable market will expand by $1.9 billion through Enfusion’s international presence, according to a press release.⁶ The deal illustrates strategic buyers’ vertical consolidation efforts, and the premiums placed on M&A targets with international reach at the top end of the Financial Technology market.

Sector Equity Financing Activity Rebounds from Market Correction

Equity financing activity in the global Financial Technology sector has rebounded YTD following a broader market correction in the Venture Capital universe. To date, total sector growth capital raised has increased 23.2% YOY to $25.9 billion. The number of equity financing deals in the space has also risen YOY, increasing 17% to 3,985 transactions in YTD 2025. Growth capital investors have seemingly come off the sidelines since startup valuations have normalized, often deploying capital to sector businesses with innovative offerings, recurring revenue streams, and larger addressable markets. At a regional level, North American participants have drawn $9.2 billion (35.4%) of total sector growth capital to date, followed by Europe ($7.9 billion, 30.6%) and Asia ($6.7 billion, 26.5%). While North America has accounted for the lion’s share of equity financing dollars in the space, Europe has witnessed a spike in activity as equity investors have capitalized on the ballooning Software market in this region. Total sector growth funding raised in Europe has jumped 68.8% YOY through YTD 2025, marking the largest YOY gain globally.

The Payments subsector has led equity financing activity in the space globally and in nearly every region of the market. Worldwide, total subsector growth capital raised has increased 36.3% YOY to $9.2 billion in YTD 2025. Equity investors in the Payments subsector have increasingly prioritized startups with significant revenue growth and upside potential to ensure a return on investment. Payments providers in North America and Europe with proven financial growth have secured substantial equity capital injections at robust valuations. Depicted below are notable equity funding rounds in North America and Europe, demonstrating growth capital investors’ willingness to back high-growth payments businesses.

• Mercury Raises $300 Million in Series C Funding (March 2025) – U.S.-based Mercury raised $300 million in Series C funding for a post-money valuation of $3.5 billion (March 2025). Sequoia Capital led the round, joined by existing investors Coatue, CRV, and Andreessen Horowitz. Mercury provides a banking technology stack, enabling small businesses and consumers to automate payments and invoices. Mercury was able to achieve its valuation via rapid customer and transaction volume growth, which increased 40% and 64% YOY, respectively, as of March 2025, according to a press release.⁷ The company plans to develop new products, explore acquisitions, and expand its workforce with the additional funding.
• NomuPay Secures $37 Million in Series B Financing (January 2025) – In January 2025, NomuPay secured $37 million in Series B financing for a post-money valuation of $200 million. The round was co-led by Endeit Capital and Uneti Ventures. Headquartered in Dublin, Ireland, NomuPay develops a cross-border payment platform for merchants across Asia and the Middle East. The company’s focus on aggregating payment methods in fragmented geographies has provided NomuPay with a significant advantage over larger competitors. As a result, NomuPay’s revenue has grown 100% annually over the last two years, according to TechCrunch.⁸ NomuPay has completed four acquisitions in the Payments subsector since 2021 and plans to continue its M&A strategy with the latest growth capital investment.

While a global view of the Financial Technology landscape can provide a strong sense of general market health, regional breakouts have identified a dislocation of valuations for many pockets of the sector. Regulatory policies, currency value, and operating subsector will likely continue to dictate valuations for M&A and equity financing targets at a regional level. Europe has unquestionably emerged as a hotbed for capital markets activity in the Financial Technology sector; however, North America is expected to maintain its leadership in the long-term.

To discuss the shifting regulatory environment and valuation impacts, provide an update on your business, or learn about 1060 Capital, LLC’s wide range of advisory services and Financial Technology M&A knowledge, please contact us.

Max Morrissey, Vice President, was the lead Market Intelligence contributor to this article.

Endnotes

1. St. Louis Federal Reserve, “Nominal Broad U.S. Dollar Index,” https://fred.stlouisfed.org/series/DTWEXBGS/, accessed May 7, 2025.

2. The White House, “Reducing Anti-Competitive Regulatory Barriers,” https://www.whitehouse.gov/presidential-actions/2025/04/reducing-anti-competitive-regulatory-barriers/, accessed May 7, 2025.

3. TechCrunch, “Flex Acquires a16z-Backed Maza for $40M as FinTech M&A Heats Up,” https://techcrunch.com/2025/04/24/flex-acquires-a16z-backed-maza-for-40m-as-fintech-ma-heats-up/, accessed May 16, 2025.

4. Bain & Company, “Global Private Equity Report 2025,” https://www.bain.com/insights/topics/global-private-equity-report/, accessed May 16, 2025.

5. Shift4 Payments, “Shift4 to Acquire Global Glue…,” https://investors.shift4.com/news-events/press-releases/detail/246/shift4-to-acquire-global-blue-the-leading-specialty-payments-and-technology-provider-serving-luxury-brands, accessed May 8, 2025.

6. Clearwater Analytics, “Clearwater Analytics to Acquire Enfusion for $1.5 Billion…,” https://clearwateranalytics.com/press-releases/clearwater-analytics-to-acquire-enfusion/, accessed May 8, 2025.

7. Mercury, “Announcing our $300M Series C,” https://mercury.com/blog/series-c-announcement, accessed May 8, 2025.

8. TechCrunch, “NomuPay Raises $37M at a $200M Valuation to Build Payment Rails in Underserved Markets Across Asia,” https://techcrunch.com/2025/01/07/nomupay-raises-37m-on-a-200m-valuation-to-build-payment-rails-in-underserved-markets-across-asia/, accessed May 8, 2025.