Recent Fintech M&A

There have been several large mergers and acquisitions in the Fintech space over the past couple of years. We think that there will be more to come as banks choose to purchase rather than innovate. As demographics change, so will the products of large financial institutions.

FutureAdvisor

Acquired by: Blackrock
Year: 2015
Amount: Undisclosed

Backed in part by Y Combinator, Sequoia Capital and Canvas Venture Fund, FutureAdvisor was founded in 2010 and is based in San Francisco. As a is a digital investment manager it uses software to allocate positions among different exchange-traded funds. The acquisition is said to boost the efforts of Blackrock’s iShares division, which has been increasing AUM as appetite for low-cost market index products has continued to grow.

LevelMoney

Acquired by: Capital One
Year: 2015
Amount: Undisclosed

Level Money is a money-management app that was acquired by Capital One because of its usefulness in allowing users to keep track of savings and spending money. The app’s user interface is simple and easy-to-use which is something that banks have been slow to pick up on. Capital One hopes to use this acquisition to help their customers manage and visualize their funds.

Simple

Acquired by: BBVA Compass
Year: 2014
Amount: $117M
Simple was acquired by BBVA for $117 million dollars due to its design built around online usage. Simple was designed to put banking services online where more and more people want. The acquisition is meant to leave Simple providing its same exact services with the same exact team along with support from a large bank.

Check

Acquired by: Intuit
Year: 2014
Amount: $360M

Intuit has been in the process of acquiring early stage tech companies. They acquired Check for $360 million to add a provider of bill payment and mobile account management to their arsenal. Intuit is a leading provider of payroll, billing, and financial management for small businesses.

Walla.by

Acquired by: BankRate.com
Year: 2014
Amount: Undisclosed

Walla.by is involved in credit card rewards and was acquired by Bankrate.com, an online personal finance publisher. Bankrate seeks to take advantage of Wallaby’s consumer audience. They wish to better consumer relations with a rewards-driven service.

Lemon Wallet

Acquired by: LifeLock
Year: 2014
Amount: $42.6M
LifeLock acquired Lemon Wallet to use their mobile wallet platform. LifeLock is trying to expand into the modern era by utilizing Lemon Wallet’s modern app design. LifeLock characterizes the acquisition as a way to accelerate their current product and add additional functionality.

LearnVest

Acquired by: Northwestern Mutual
Year: 2015
Amount: Undisclosed

LearnVest was a financial planning product meant for women, but has since expanded its service. Northwestern Mutual acquired it for ~$250 million. LearnVest’s services are useful to Northwestern Mutual’s existing services. Financial education has become an important part of fintech as seen by this acquisition.

Gyft

Acquired by: First Data
Year: 2014
Amount: Undisclosed

Gyft is a mobile platform that makes using gift cards smooth and easy. First Data has the resources and now has the tools to accelerate the usage of virtual prepaid and expand the way merchants treat it. First Data already has more than 300 national retail prepaid clients who now gain access to Gyft.

Quizzle

Acquired by: BankRate.com
Year: 2015
Amount: Undisclosed

Quizzle allows consumers to understand all their information about their financial situation along with a free credit report. It was acquired by Bankrate, who retains Quizzle’s platform, vendor relationships, and customer base. Bankrate wishes to utilize Quizzle’s relationship building technology and incorporate it into their own framework.

ReadyForZero

Acquired by: Avant.com
Year: 2015
Amount: Undisclosed

ReadyForZero is a service that helps users pay off debt. Avant is one of the leading online lendors and acquired ReadyForZero. The plan is for Avant to offer the ReadyForZero service to users who may not yet qualify for a loan and help them get up to that point. ReadyForZero will also start recommending Avant products in its service.

Upside

Acquired by: Envestnet
Year: 2015
Amount: Undisclosed
Upside, a Palo Alto startup, helps financial advisors compete against other digital advisors, sometimes known as robo advisors, by leveraging technology. The company’s design-led, advisor-branded platform provides advisors with paperless on-boarding and as well as trading and rebalancing.

Yodlee

Acquired by: Envestnet
Year: 2015
Amount: $590M

Yodlee was founded in 1999 and sells a technology which allows banking institutions and online financial managers to aggregate consumer financial data. This allows for people to aggregate their credit card statements, bank accounts, and investment portfolio all in one website.

California Fintech Network is a non-profit trade organization for professionals, founders, executives and investors that work in financial technology. Join us at www.californiafintech.org

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