Industry Reports

Published on: 03/22/2021
COVID-19 has placed heightened focus on digital solutions with the continuation of remote work, expediting executives’ timelines for digitizing internal processes, products, and services. To meet demand, AppDev & deployment companies have scaled organically and inorganically through mergers and acquisitions (M&A). 
Published on: 03/18/2021
Although software companies focused on in-person events have been hurt by stay-at-home orders, COVID-19 has generated demand for software providers with Nonprofit clients seeking to diversify funding.  As corporations have increasingly encountered scrutiny for their position around social issues amid the pandemic and Black Lives Matter (BLM) movement, enterprises have heightened focus on corporate social responsibility (CSR) and environmental, social, and corporate governance (ESG).  Capstone expects the combination of rising CSR and accelerated technology adoption to produce heightened market activity in 2021.
Published on: 03/16/2021
While some segments of HCM SaaS struggled amid COVID-19, areas such as Remote Workforce Management have experienced heightened demand.  The shift to virtual work is expected to remain a key focus area for enterprises in the future. As the industry continues to recover, Capstone predicts multiples to rise and merger and acquisition (M&A) activity to remain strong through 2021.
Published on: 03/04/2021
COVID-19 has placed heightened focus on Enterprise SaaS & Cloud solutions with the continuation of remote work and acceleration of the digital environment. As a result, market activity rebounded in the second half of 2020, providing a favorable outlook for the industry in the coming year. Due to healthy valuations and the expected tax increase motivating sellers, Capstone predicts robust M&A activity through 2021.
Published on: 02/25/2021
The report overviews the short- and long-term effects of the COVID-19 pandemic and discusses which subsectors will be most impacted, both positively and negatively. The report also shares: Key themes disrupting the industry, including payments, digitalization, lending, and mobile. How trends have impacted merger and acquisition (M&A) activity and valuations. An overview of the most active players, as well as expectations for the industry moving forward.
Published on: 02/08/2021
COVID-19 lockdowns have created heightened demand for the implementation of financial technology and digital payment solutions.  As the industry continues to experience such growth, established financial technology companies look to strategic acquisitions to safeguard their market position and bolster software suites.  Market activity in the FinTech & Payments industry is expected to continue through 2021, with a particularly favorable outlook on the Digital Payments segment.
Published on: 11/13/2020
Merger and acquisition (M&A) activity reached a record of 2,564 deals totaling over $150 billion in value over the last twelve months. M&A activity soared in Q3 to 945 deals, exceeding the prior quarterly record by nearly 300 deals while doubling Q2 volume. However, deals for the quarter tended to be smaller transactions at weaker multiples.
Published on: 10/16/2020
Deal volume and financings across the FinTech & Payments industry decreased 20% year-over-year (YOY) but increased 11% on a quarter-over-quarter basis.  The contraction in deals and financings reflects the adverse impacts of the COVID-19 pandemic that started in March and has continued through the end of Q3 2020.  In total, there were 152 mergers and acquisitions (M&A) announced in the space with Payments remaining the largest segment. 
Published on: 10/15/2020
The pandemic has catalyzed demand for AppDev and deployment software and services in order to meet the surge of online consumers, students, and employees in the remote environment. In the workplace, the pandemic has heightened the need for enterprise-wide digital transformations for improved connectivity and transparency. 
Published on: 08/27/2020
Capstone expects COVID-19 will accelerate adoption of nonprofit software by several years. The reallocation of focus towards digital fundraising and increased utilization of subscription giving are anticipated to generate higher transaction dollars for digital fundraising solutions.

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