2020 was a year of unprecedented peaks and troughs for European financial services M&A—a year with glittering prospects hit rock bottom in April, following the onset of the first COVID-19 lockdown. Bumper trading revenues and advisory fees recorded by the Bulge Bracket bolstered market confidence, but dividend bans and fears surrounding loan default levels soon took their toll.
Just when all seemed lost, deal-making rebounded strongly, hastening the commencement of bank consolidation M&A across Europe and the promise of an M&A bull market in 2021.
In this edition, we navigate the choppy financial services M&A landscape of 2020 to bring you key deal highlights and M&A trends across Europe and the UK. Focusing on Banks, Fintech and Other Financial Services, we also provide our insights on the outlook for M&A in H1 2021 and beyond.
Key highlights from H2 2020 include the following:
Bank M&A across Europe comes to a boil—the COVID-19 pandemic has hastened the confluence of conducive conditions for mega domestic mergers. Spain and the Balkans lead the charge, with Italy, Germany, France, Poland and the UK expected to follow.
by Guy Potel
2020 has been a turbulent year for many fintechs. Established fintechs and startups with deliverable business plans have thrived, while others have suffered the indignity of plummeting valuations and down rounds.
Market consolidation continues at pace, as the COVID-19 pandemic heaps pressure onto smaller managers
by Jan Jensen and Leonardo Graffi
Pan-European champions emerge amidst the COVID-19 turmoil— Germany (Giropay/Paydirekt), France (Worldline/Ingenico) and Italy (SIA/Nexi)
by Dr. Jost Kotthoff and Darragh Byrne
Market infrastructure juggernauts thunder the M&A plains—vertical integration remains a key focus
by Franck De Vita and Hugues Mathez
"Traditional" brokers resort to M&A to survive in the COVID-19 climate, which has boosted customer demand for DIY online trading platforms
by Daniel Turgel and Henrik Wireklint
Financial sponsors back niche providers—child-friendly, gig economy and POS finance attract interest in H2 2020
by Ashley Ballard and Jonathan Rogers
Specialty finance businesses abandon retail investor roots in favour of institutional support
Financial institutions M&A sector trends: consumer finance — H2 2020 and outlook for 2021
Financial sponsors back niche providers—child-friendly, gig economy and POS finance attract interest in H2 2020
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Despite uncertainty surrounding the true impact of government-backed COVID-19 consumer relief measures, trade and financial sponsor investment is likely to continue in the medium-term as investors seek to capitalise on growth in e-commerce (which is likely to extend beyond the COVID-19 pandemic).
In a letter to UK Chancellor Rishi Sunak, Bank of England Governor Andrew Bailey called for regulation of UK non-bank financial firms to be toughened in light of the COVID-19 pandemic. S&P Global (June 2020)
White & Case represented Gaia Capital Partners, the Paris-based investment fund specialising in growth companies, on its investment, alongside Edison Partners and Citi Ventures, in the US$40 million equity funding round of GoHenry, the money app and prepaid debit card aimed at encouraging healthy financial habits in 6-to-18-year-olds.
White & Case represented Habito, recently voted best Mortgage Broker of 2020 in the British Bank Awards, on its £35 million Series C funding round.
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This article is prepared for the general information of interested persons. It is not, and does not attempt to be, comprehensive in nature. Due to the general nature of its content, it should not be regarded as legal advice.
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