1 payments / cards, loyalty and ecommerce solutions m&a highlighted transactions value ($ mm)...

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Payments / Cards, Loyalty and eCommerce Solutions M&A

Highlighted Transactions

Value ($ mm) CommentsAcquirer / TargetDate

12/12/2013 LifeLock / Lemon $42.6 ■ Launched in 2011, Lemon provides digital wallet services; provides backup for ID, payment, loyalty cards on smartphone; it has been downloaded more than 3.6 million times

■ Lemon received $8M in Series A funding in June 2012 and the individual investors included Maveron, Lightspeed Venture Partners, CampVentures, Draper Fisher Jurvetson, Chamath Palihapitiya’s Social+Capital Partnership

■ LifeLock provides identity theft protection services for consumers and identity risk assessment and fraud protection services for enterprises; acquired ID Analytics, Inc. in March 2012

■ On December12, 2013, LifeLock announced acquiring Lemon, Inc. for $42.6 million in cash; customary equity for this transaction to be issued over the next three years

■ According to LifeLock President, Hilary Schneider, through the acquisition LifeLock seeks to accelerate the product roadmap, add additional functionality and data to the platform and expand market opportunities .

12/02/13 NCR / Alaric System 84 ■ Incorporated in 1997 and headquartered in London, UK, Alaric Systems provides payments processing and fraud prevention software allows financial institutions, processors and retailers; powers more than 1.25 billion transactions a month across 30 countries.

■ NCR provides self-service and assisted-service solutions in the financial services, retail, hospitality, ATMs, travel and gaming and entertainment industries.

■ On December 2, 2013, NCR announced the acquisition of Alaric Systems for $84 million

■ According to NCR chairman and CEO, Bill Nuti, NCR seeks to reinvent the company and deliver the industry’s most comprehensive suite of retail banking solutions.

12/02/13 Blackhawk / Retailo na ■ Retailo AG is the leading European multi - channel gift card distributor and offers customized solutions for business customers. Retailo launched the www.jokerkartenwelt.de portal for top up of e-money products in 2012.

■ Retailo AG was founded back in 2008, and its investors include Wellington Partners, Endeavour Vision, Seventure Partners and High-Tech Gründerfonds.

■ Blackhawk Network is a leading prepaid payment network and supports the distribution of gift cards, prepaid telecom products and financial service products across a global network. Competitors of Blackhawk Network include InComm and ePay.

■ On December 2, 2013, Blackhawk Network announced that it has completed the acquisition of Retailo AG; Blackhawk funded the purchase with cash from operations and the acquisition price was undisclosed. According to Techcrunch sources, the price is to the tune of $68 million.

■ 40,000 new distribution locations added to Blackhawk's EMEA retail distribution network bringing the total to approximately 70,000. The deal is part of Blackhawk's strategy to expand its gift cards and prepaid solutions business across Europe and its digital network offerings. Retailo’s management team will remain same post-acquisition.

New M&A Profiles

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Payments / Cards, Loyalty and eCommerce Solutions Financings


Value ($ mm) CommentsCompany / Investor(s)Date

12/12/2013 Loop / Undisclosed Investors

$10 ■ Loop provides mobile wallet solutions; allows consumers securely store and organize all their plastic cards and use them virtually everywhere with the device of their choice.

■ Loop's hardware devices targeting the US market, including fobs and a more practical charge case product line will both allow for mobile payments, as well as provide extra battery power.

■ D Loop received $10 million in “oversubscribed” Series A funding from unnamed investors; according to Loop co-founder and CEO Will Graylin, investors include many high-powered CEOs and people from the payment industry

■ With the funding Loop seeks to set the stage for Loop’s Series B in early 2014; participation from both strategic and institutional investors will be included

12/12/2013 Coinbase / Andreessen Horowitz

25 ■ Founded in June 2012, Coinbase enables a consumer to use the digital currency Bitcoin. A consumer can create a Bitcoin wallet and start buying/selling Bitcoin instantly by connecting their bank account.

■ Coinbase employing eight people currently has 600,000 registered users for its Bitcoin wallet. Also, Coinbase also provides a series of merchant tools; significant savings in processing fees - first $1,000,000 of merchant orders processed for free and 1% fee after that and no chargebacks.

■ Coinbase has received $25 million in a Series B round funding; individual investors included in the round include Andreessen Horowitz, existing investors Union Square Ventures and Ribbit Capital.

■ The latest round funding brings the total raised by Coinbase up to $31 million.The money raised will be used towards expansion of the company from eight to 50 or 60 by next year, and building on recent products like SMS payments and recurring payments for subscriptions by providing more services for developers. Coinbase raised $7 million in the seed round and the individual investors included Alexis Ohanian, Founder of breadpig; Greg Kidd, Founder and CEO of 3taps; Garry Tan, Partner at Y Combinator; FundersClub and Y Combinator.

12/04/2013 Mozido / Brentwood Investments; TomorrowVentures; Atlanticus Corporation; Individual; Bob Turner

30 ■ Founded in 2005 by Michael Liberty, Mozido provides cloud-based, white-label, mobile payment, shopping and marketing solutions.

■ Mozido, Inc. received the first $30 million of a committed $70 million round of financing; total funding of the company is over $100 million; individual investors include Brentwood Investments, TomorrowVentures, Atlanticus Corporation and Bob Turner personally of Turner Investments.

■ Through this funding Mozido seeks to to accelerate its growth both organically and through strategic acquisitions.

New Financing Profiles

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Payments / Cards, Loyalty and eCommerce Solutions M&A


Value ($ mm) CommentsAcquirer / TargetDate

11/05/13 Alliance Data / BrandLoyalty

$360 ■ BrandLoyalty offers transactional data-driven marketing and loyalty solutions serving large businesses in the food and retail sectors; in 2012, the Company generated annual revenue greater than $400 mm, more than 50% of which was generated in Germany, France, Italy and selected markets in Asia

■ Alliance Data provides marketing, loyalty and payment processing solutions; its loyalty segment, LoyaltyOne, provides loyalty consulting, customer analytics, creative services as well as Alliance’s AIR MILES reward program

■ On November 5, 2013, Alliance Data announced the acquisition of a 60% stake in BrandLoyalty for $360 mm in (cash and assumed debt) plus an earn-out based on 2014 actual results; valuation was 10x LTM EBITDA, which allows the transaction to be immediately accretive on a core EPS basis

■ Alliance Data has the option to acquire the remaining 40% of BrandLoyalty over the next four years in 10% increments per annum based on a pre-determined valuation multiple; Alliance Data is required to acquire a 10% stake per annum if BrandLoyalty hits certain earnings targets

10/21/13 Blackhawk / InteliSpend na ■ InteliSpend is a prepaid card program manager that offers corporate-funded prepaid card programs for corporate incentives and consumer promotions; serves a variety of verticals including healthcare, telecommunications, insurance, financial institutions and hospitality

■ Blackhawk distributes a range of gift cards, other prepaid products and payment services across multiple high-traffic channels such as grocery, convenience, specialty and online retailers

■ InteliSpend was formerly a joint venture between Maritz and American Express; Maritz bought out American Express’s minority interest in February 2010 to become sole owner of InteliSpend

■ On October 21, 2013, Blackhawk Network announced that it had agreed to acquire InteliSpend; the Company was valued at 7-8x its 2014 Adjusted EBITDA of $9-11 mm giving a value range of $63-88 mm

■ According to Blackhawk CEO, Bill Tauscher, Blackhawk seeks to benefit from InteliSpend’s low seasonality, revenue visibility, opportunity to leverage Blackhawk’s digital product solutions and international presence

10/18/13 Wonga / BillPay na ■ Founded in 2009, BillPay offers users a fast and secure way to shop online with a range of different payment methods, from invoicing to installment credit

■ The Company has approximately two million end-users and works with over 3,500 online shops

■ Wonga is a UK-based online lender which provides short-term loans to individuals and businesses primarily in the UK

■ On October 18, 2013, Wonga announced the acquisition of BillPay for an undisclosed amount

■ The acquisition will give Wonga a presence in Europe’s second largest online retail market

M&A Example from last month

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11/12/13 Ripple Labs / Core Innovation Capital; Venture51; Camp One Ventures; IDG Capital Partners

$3.5 ■ Ripple Labs (“Ripple” fka “OpenCoin”) enables secure and low cost transactions in any currency globally, with no chargebacks to merchants

■ As a distributed multi-currency exchange, Ripple pathways allow users to send money in one currency and receive it in another, including dollars, yen, euros or even Bitcoins

■ The Ripple payment system can be used for a wide range of applications, including merchant payments, money transfers or remittances

■ Ripple received $3.5 mm in financing from Core Innovation Capital, Venture51, Camp One Ventures, IDG Capital Partners and a number of unnamed individual investors

■ Previous investors include Google Ventures, Andreessen Horowitz, FF Angel, IDG Capital Partners, Lightspeed Venture Partners, The Bitcoin Opportunity Fund and Vast Ventures, Pantera Bitcoin Opportunities Fund

11/11/13 World First / FTV Capital na ■ World First provides foreign exchange, international payment and hedging solutions to corporate and private clients

■ Founded in 2004 and based in the U.K., the Company has transacted with over 29,000 private clients and 5,500 companies; processes over $10 bn of volume annually; World First has processed $25.6 bn since inception

■ World First recorded 2012 revenue of $29.4 mm and expects to earn $40 mm in 2013 revenue; the Company has targeted a 26% annual growth rate and is now the third biggest U.K. foreign exchange company behind Western Union and Moneycorp

■ World First announced the completion of the sale of a 40% minority stake to FTV Capital; Brad Bernstein, Partner and Kyle Griswold, Principle at FTV Capital, will join the Company’s board

11/06/13 Loop Commerce / Novel TMT

7 ■ Founded in 2012, Loop Commerce (“Loop”) provides a SaaS-based gifting solution; allows users to select gifts from a retailer’s entire inventory at the retailer’s point of sale

■ Merchants can enable consumers purchasing gifts to send messages to their recipients at the time of checkout, asking the recipient to specify size, color, shipping address, etc.

■ Visibility into the recipient’s order information, as well as the buyer’s, gives merchants new opportunities to cross-sell and up-sell to a broader market

■ The Company received a $7 mm equity investment from Novel TMT; the tech, media and telecom investing arm of Novel Group; individual investors included in the round include Mark Carges, CTO of eBay; Don Katz, Founder and CEO of Audible and EVP of Amazon and Chuck Geiger, CTO of Chegg and former CTO of PayPal

■ Loop has raised $8 mm to-date, including seed funding of $1 mm led by Oren Zeev

Financing Example from last month

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11/05/13 Betable / Venture51; Greylock; Founders Fund

$18.5 ■ Betable provides a platform that acts as the license, support and infrastructure to allow developers to legally integrate real-money gaming into their own mobile and social games without having to fulfill costly licensure requirements

■ The Company is licensed by the United Kingdom Gambling Commission and certified by industry leading 3rd party testing houses to provide this service to game developers

■ Betable received $18.5 mm in Series A financing led by Venture51 with existing investors, Greylock and Founders Fund, also participating

■ The Company plans to use the funding to expand its team, introduce new features and support developers who are building on Betable’s platform

10/27/13 Payfone / Early Warning 10 ■ Payfone provides a One Touch Checkout offering that leverages the mobile operator network to directly authorize and process mobile payments

■ Early Warning provides business intelligence solutions to help financial organizations fight fraud, isolate and manage risk and remain compliant

■ Payfone received a $10 mm equity investment from Early Warning, at a valuation of $500 mm; the two companies also entered into a strategic partnership

■ Early Warning plans to integrate Payfone’s services into its current offering to its clients

10/10/13 Level / Kleiner Perkins Caufield & Byers

5 ■ Level provides Level Money, a mobile app that provides a live snapshot of a user’s spendable income by connecting with bank and credit card accounts

■ Level Money performs automatic analysis to calculate a user’s total income, recurring bills and recommended savings each month; tracks a “spendable” balance, broken down by day, week and month

■ The Company received $5 mm in Series A financing led by Kleiner Perkins Caufield & Byers, and including former Citigroup Chairman and CEO, Sandy Weill, Former FCC Chairman Reed Hundt and Former Barclays Global Investors CEO Blake Grossman

Financing Example from last month

1 payments / cards, loyalty and ecommerce solutions m&a highlighted transactions value ($ mm)...

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