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Exit and Growth Strategies for Middle Market Businesses

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard | Oct 15, 2018

The report below gives a good overview of the fourth quarter M&A activity in the Financial Services Industry Sector. M&A activity for North American based target companies in the Financial Services sector for Q3 2018 included 268 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions closed in August when Xome, Inc., a subsidiary of WMIH Corp, acquired the business and assets of Mortgage Solutions business of Assurant, Inc. for US$35 million in cash. Under the terms of the agreement, Xome paid US$35 million in cash and an undisclosed amount in contingent payout to the shareholders of Assurant. The acquisition would allow Xome to expand its product offerings. The transaction is expected to be accretive to the earnings of WMIH Corp in 2019.

The financial services sector has been significantly impacted by software and technology, which continues to evolve creating efficiencies and increasing profitability.

 

Industry Indicators

  • US consumer spending on services, a finance service demand indicator rose 2.7% in July 2018 compared to the same month in 2017.
  • US corporate profits, an indicator of corporate demand for financial services, rose 7.7% in the second quarter of 2018 compared to the same period in 2017.
  • US personal income, which drives demand for finance services rose 4.7% in July 2018 compared to the same month in 2017.

Posted by David Sinyard.

Read the Entire Financial Services 4th Quarter Newsletter Here


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