Global fintech deal volume through the first nine months of the year has already surpassed 2023 levels, according to FT Partners research.
Why it matters: Fintech dealmaking is back on an upswing after a slow two years, with annualized deal volume on pace to return to 2019 and 2020 levels.
The big picture: In its latest quarterly fintech insights report, the investment bank notes that total deal activity — including private company financing, IPOs and M&A deals — reached $206.7 billion through the year's first three quarters.
- That's up from $158.1 billion for all of 2023 and on pace to surpass 2022's total of $225.7 billion.
Yes, but: It's well below the record $527.5 billion in deals reported in 2021.
Between the lines: Much of this year's activity was driven by a resurgence in fintech M&A, which has reached $165 billion so far in 2024 — surpassing full-year totals for 2023 ($102 billion) and 2022 ($135 billion).
- Of course, Capital One's planned $35 billion acquisition of Discover significantly boosted that total.
- However, 2024 also saw 35 M&A deals with price tags of $1 billion or more, more than doubling the number of mega-deals (16) recorded in 2023.
State of play: M&A activity was particularly robust in the third quarter, with 388 deals, representing a 41% increase year over year and the highest deal count since Q1 2021 (395).
- Strategic M&A increased 40% over the prior year's third quarter, which included Mastercard's $2.7 billion deal for Recorded Future, Roper's $1.6 billion purchase of Transact, and Visa's acquisition of FeatureSpace in a deal rumored to be worth $925 million.
- Private equity buyouts accounted for eight of the top 10 M&A deals in the quarter, making up more than half of the total dollar value of deals in 2024.
Zoom out: After a dramatic decrease in 2022, FT Partners says private company financing volume appears to be normalizing.
- Deal volume averaged $13 billion over the last eight quarters, with Q3 2024 above that level at $13.5 billion, according to the report.
