The maturity of AI and ML technologies is expected to drive M&A activity in the sector well into 2023 and beyond.
BOSTON, Massachusetts, June 1, 2023 /EINPresswire.com/ — Capstone Partners, a leading middle market investment banking firm, announces latest financial technology (fintech) M&A update on what’s happening as a sector Highlighted waves of remarkable innovation. Players are increasingly integrating artificial intelligence (AI) and machine learning (ML) technologies to differentiate their products, attract investor interest, and capture the attention of potential buyers. Looking ahead, Capstone expects the maturity of these technologies to drive healthy M&A activity well into the year-end and beyond.
A recent Deloitte survey revealed that 86% of financial services executives believe AI will be critical to their business operations over the next two years¹. As a result, many leading fintech companies are actively pursuing advanced AI, ML and data science capabilities through strategic acquisitions rather than investing in in-house development, facilitating a dynamic M&A environment. . Acquisition intent of AI and ML-enabled software providers is largely realized in tuck-in deals, where strategic and sponsored buyers bring together participants with advanced capabilities that enhance specific business functions .
Looking back at the real estate technology subverticals, Taylor Woodson, newly appointed managing director of Capstone, said, “The companies that make the most of these technologies and use them effectively will be the future of the industry.” It will be a front-runner,” he commented. Joining Capstone from Trust Securities, Woodson brings deep fintech expertise in real estate, real estate and mortgage technology, further strengthening Capstone’s capabilities in the rapidly evolving sub-sector.
This work also includes:
• How a year-on-year slowdown in trading volumes has counter-intuitively benefited players in some sectors pursuing strategic events.
• A breakdown of the types of buyers most active in the sector, along with macroeconomic challenges and drivers of current trading activity.
• Highlight various use cases and benefits of AI and ML across the FinTech subverticals, including payments, banking technology, and more.
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About Capstone Partners
For more than 20 years, the firm has been a trusted advisor to leading mid-market companies, offering a uniquely customized and fully integrated suite of financial instruments to assist owners, investors and creditors through each stage of the company lifecycle. It has provided investment banking and financial advisory services. Capstone’s services include M&A advice, debt and equity placement, corporate restructuring, special circumstances, valuation and fairness opinions, and financial advisory services. Headquartered in Boston, the company employs more than 175 of his professionals in multiple offices across the United States. With 12 specialized industry groups, Capstone delivers sector-specific expertise through a large cross-functional team. Capstone is a subsidiary of Huntington Bancshares Incorporated (NASDAQ:HBAN). For more information, please visit www.capstonepartners.com.
Endnotes:
1. Deloitte, “The Future of AI in Banking,” https://www2.deloitte.com/us/en/pages/consulting/articles/ai-in-banking.html, accessed May 11, 2023.
David Francione | Head of Fintech Investment Banking
capstone partners
+1 617-458-9254
dfrancione@capstonepartners.com
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