M&A Quarterly News In The Financial Services Industry Sector

M&A Quarterly News In The Financial Services Industry Sector

By David Sinyard

August 07, 2018

The report below presents you with a good overview of the third 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 Q2 2018 included 206 closed deals, according to data published by industry data tracker FactSet.

One of the notable middle market transactions was announced in June when 360 Treasury Systems AG, a subsidiary of Deutsche Börse AG, acquired Gain GTX LLC from GAIN Capital Holdings, Inc. for US$100 million in cash, subject to a customary adjustment. The transaction allows Deutsche Börse AG to provide financial flexibility to enhance its investment opportunities. Following the transaction, the GTX ECN business will be integrated into Deutsche Börse’s 360T forex unit. Gain GTX LLC is located in Bedminster, New Jersey and provides foreign exchange services.

Household wealth continues to rise across North America, Western Europe and Asia, which has bolstered the financial services sector.

Industry Indicators

  • US corporate profits, an indicator of corporate demand for financial planning and investment advising, rose 4.3% in the first quarter of 2018 compared to the same period in 2017.
  • The bank prime loan rate, a tool for financial planners and investment advisers was 4.75% as of the week of June 13, 2018, up from a rate of 4.25% the same week in 2017.
  • US personal income, which is a driver for financial planning and investment services, rose 3.8% in April 2018 compared to the same month in 2017.
  • Total US revenue for other financial investment activities, which includes financial planners and investment advisors, rose 6.6% in the first quarter of 2018 compared to the previous year.

Posted by David Sinyard.

Read the Entire Financial Services 3rd Quarter Newsletter Here