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Tech Insights #353
Tech M&A deal structures
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
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Overview
This Tech Insights report covers the structure of technology M&A deals over the last 10 years as available from FactSet. Page one highlights regional differences in structure and acquisition behaviour, illustrating how deal activity has progressed through time. Page two highlights how some of the world’s most acquisitive tech companies structure their M&A deals. Note: this report only looks at acquisitions of private companies.
Average tech deal structure by acquirer region
Transaction value (% of acquirer’s EV)
-
5%
10%
15%
20%
25%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
-
20%
40%
60%
80%
100%
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
Cash up front
Stock up front
Other
The median transaction value in AU/NZ was 5.9% of the acquirer’s EV.
Number of tech M&A deals by year
Transaction size (US $m)
-
200
400
600
800
1,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
North America
AU/NZ
Europe
UK
Asia
Other
-
10
20
30
40
NorthAmerica
AU/NZ
Europe
UK
Asia
Other
25th percentile
Median
75th percentile
2024
as at 15 Oct
>89
49
-
20%
40%
60%
80%
100%
Monchilla
Hubdoc
Instafile
Waddle Loans
Planday
Tickstar
Locate Inventory
Cash up front
Stock up front
Other
Tech Insights #353
Tech M&A deal structures
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
11 November 2024
Selected Lightspeed deal structures (transaction size, US $m)
Selected Xero deal structures (transaction size, US $m)
-
20%
40%
60%
80%
100%
Chronogolf
GastroFix
ShopKeep
Upserve
Vend
Ecwid
NuORDER
Cash up front
Stock up front
Other
$12m
$120m
$500m
$421m
$354m
$643m
$386m
-
20%
40%
60%
80%
100%
IBM (12 deals)
Accenture (9)
Oracle (8)
Spotify (6)
Microsoft (19)
Tech Mahindra (19)
Atlassian (6)
Alphabet (15)
Citadel Group (6)
BigTinCan (12)
ReadyTech (8)
RPMGlobal (6)
Altium (7)
Salesforce (11)
Wisetech (27)
ELMO (7)
Lightspeed (7)
Xero (7)
Xero’s average deal structure contains 30% cash up front.
Average % of transaction value in up front cash
AU/NZ acquirers
Large global acquirers
$7.2m
$70m
$6.8m
$57m
$221m
$18m
$14m
GetThere acquisition (announced 28 Oct 2024)
GetThere is a corporate travel management platform in North America and unlocks growth in this market for Serko. The acquisition includes the platform, team and customer base.
The announced 5-year Sabre partnership involves Sabre continuing to sell GetThere and also co-sell Zeno (Serko’s platform), utilising Sabre's sales team.
NZD $m
Upfront cash
17
Deferred (cash or shares)
3
Implied NTM revenue (NZD $m)
18
Base purchase price
20
→
Implied NTM revenue multiple
1.1x
Performance payments*
21
Total consideration
41
*Performance payments related to Sabre co-selling GetThere and Zeno over the next two-year period.
Tech Insights #352
Serko’s flight plan
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 November 2024
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Overview
This Tech Insights report looks at the growth Serko has achieved with the existing Booking.com partnership and at Serko’s announced acquisition of Sabre’s GetThere platform. Serko recently announced a second major partnership (with Sabre) and shared an aspirational revenue target of NZD $250m by FY30. The second page looks at the performance of the listed travel tech space since 2019 (before, during and after COVID-19).
EV and revenue multiple over time
Serko annual revenue by segment (NZD $m)
The ‘Booking.com for Business‘ partnership (supplier commissions) has been a driver of Serko’s revenue growth over the last two years (mainly in Europe). Serko has had limited traction expanding into the North American market over the last few years.
Serko EBITDA
4.6x
-
20x
40x
60x
80x
-
250
500
750
1,000
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
EV / Revenue (LTM)
EV (NZD $m)
Enterprise Value (EV)
EV / Revenue multiple (LTM)
-
20
40
60
80
FY19
FY20
FY21
FY22
FY23
FY24
March year end
Services and other
Supplier commissions(Booking.com)
Expense platform
Travel platform booking
1
(7)
(27)
(29)
(23)
(4)
(400%)
(300%)
(200%)
(100%)
-
100%
(40)
(30)
(20)
(10)
-
10
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA %
EBITDA (NZD $m)
March year end
EBITDA
EBITDA margin
-
10
20
30
40
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
Booking Holdings
Expedia Group
Airbnb
Tech Insights #352
Serko’s flight plan
Page 2 of 2
Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
4 November 2024
Selected listed travel tech companies (NZD $m)
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Listed travel tech industry – total Enterprise Value (NZD $b)
Company
Country
Description
Enterprise Value
LTM
revenue
LTM revenue growth
EBITDA margin %
EV / Revenue
EV / EBITDA
Booking Holdings
United States
Flight and accommodation booking platform
261,535
37,926
13%
31%
6.9x
22.3x
Airbnb
United States
Accommodation booking platform
128,442
17,329
17%
16%
7.4x
47.0x
Trip.com Group
China
Flight and accommodation booking platform
63,244
11,126
47%
28%
5.7x
20.0x
Expedia Group
United States
Flight and accommodation booking platform
33,197
21,879
10%
18%
1.5x
8.5x
MakeMyTrip
India
Flight and accommodation booking platform
17,965
1,452
30%
14%
12.4x
91.0x
Sabre
United States
Global distribution system (air bookings)
8,948
4,939
6%
13%
1.8x
13.8x
TripAdvisor
United States
Reviews / guides and booking platform
3,306
2,994
10%
13%
1.1x
8.7x
eDreams
Spain
Flight and accommodation booking platform
1,953
1,151
13%
11%
1.7x
14.8x
SiteMinder
Australia
Booking application software
1,913
206
25%
0%
9.3x
nm
WEB Travel Group
Australia
Flight and accommodation booking platform
1,314
508
27%
40%
2.6x
6.5x
Serko
New Zealand
Corporate travel platform
344
74
17%
(4%)
4.6x
nm
Median
8,948
2,994
17%
14%
4.6x
14.8x
Annual revenue of large travel tech platforms (NZD $b)
-
100
200
300
400
500
600
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Trip.com Group
Airbnb
Other (see below)
Expedia Group
Booking Holdings
2.3x
1.3x
-
1.0x
2.0x
3.0x
4.0x
0.0x
1.0x
Assumed revenue multiple for hardware
Tech Insights #351
Peloton’s Uphill Battle
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
21 October 2024
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Overview
Peloton is a global connected fitness company that provides an at-home fitness platform for live and on-demand fitness classes. While Peloton saw a surge in demand during the pandemic as consumers sought gym alternatives, the company’s growth has stalled as gyms have reopened, falling from a share price peak of USD $167 to $6 today. Peloton primarily generates revenue from subscriptions to its platform (software) and the sale of its exercise equipment (hardware). All figures are in USD.
Hardware subscribers* (millions) and monthly churn (%)
Hardware vs software quarterly revenue (USD $m)
Margin by revenue type (%)
Implied software revenue multiple as at June 2024
(100%)
(50%)
-
50%
100%
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Softwaregrossmargin
Hardwaregrossmargin
EBITDAmargin
-
0.5%
1.0%
1.5%
2.0%
-
0.8
1.6
2.4
3.2
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
*Members who have purchased hardware and have a platform subscription.
-
300
600
900
1,200
1,500
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Hardware
Software
30% software
67% software
If no value is associated with hardware revenue (0.0x), the implied multiple for the software revenue would be 2.3x.
Downturn due to
inventory write down, increased logistic expenses, and treadmill product recall.
Tech Insights #351
Peloton’s Uphill Battle
Page 2 of 2
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Disclaimer The information provided in this report has been sourced and calculated from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
21 October 2024
Selected companies in various fitness industries as at 18 October 2024 (USD $m)
Indexed share price – Peloton vs traditional push-bike makers
LTM Revenue growth and EBITDA margin
Location
\
Enterprise value
LTM revenue
Gross margin
Revenue growth
EBITDA margin
EV /
LTM Revenue
EV /
LTM EBITDA
Peloton
US
3,423
2,701
45%
(4%)
(11%)
1.3x
NM
Health and fitness
Life Time Group
US
7,559
2,517
47%
18%
30%
3.0x
10.2x
Planet Fitness
US
P
8,660
1,112
82%
7%
41%
7.8x
19.1x
Xponential Fitness
US
1,071
327
77%
15%
31%
3.3x
10.5x
Viva Leisure
Australia
99
106
62%
12%
47%
0.9x
2.0x
Tech
Garmin
US
29,075
5,648
57%
15%
25%
5.1x
20.3x
Daktronics
US
654
812
27%
(0%)
11%
0.8x
7.5x
GoPro
US
184
931
32%
(11%)
(10%)
0.2x
NM
Equipment
Shimano
Japan
10,636
2,869
38%
(33%)
20%
3.7x
18.5x
Giant
Taiwan
2,523
2,249
23%
(23%)
9%
1.1x
13.2x
Technogym
Italy
1,969
907
40%
14%
18%
2.2x
12.4x
Johnson Health Tech
Taiwan
1,792
1,279
49%
12%
8%
1.4x
16.9x
Median
2,246
1,195
46%
10%
19%
1.8x
12.8x
Peloton
Life Time Group
Planet Fitness
Xponential Fitness
Viva Leisure
Garmin
Daktronics
GoPro
Shimano
Giant
Technogym
Johnson Health Tech
(20%)
(10%)
-
10%
20%
30%
40%
50%
(20%)
(10%)
-
10%
20%
30%
EBITDA margin
Revenue growth
(>20%)
-
1
2
3
4
5
6
7
Oct 19
Oct 20
Oct 21
Oct 22
Oct 23
Oct 24
Peloton
Shimano
Giant Manufacturing
Tech Insights #350
Private Equity buyouts
Mergers & acquisitions
Corporate finance advisory
Capital raising
14 October 2024
Subscribe and see previous reports at clarecapital.co.nz/tech-insights Page 1 of 2
-
5x
10x
15x
20x
25x
30x
-
10
20
30
40
50
60
H2 '14
H1 '15
H2 '15
H1 '16
H2 '16
H1 '17
H2 '17
H1 '18
H2 '18
H1 '19
H2 '19
H1 '20
H2 '20
H1 '21
H2 '21
H1 '22
H2 '22
H1 '23
H2 '23
H1 '24
Revenue multiple
Total enterprise value (USD $b)
Overview
This Tech Insights report presents acquisitions by Private Equity firms of publicly listed Technology* companies over the past ten years. On the first page we present the total value of these transactions and the weighted EV/revenue multiple. The second page presents transaction revenue multiples of Thoma Bravo and Vista Equity Partners (the two most acquisitive firms), as well as selected notable transactions through the ten-year period.
Count
H2 '14
H1 '15
H2 '15
H1 '16
H2 '16
H1 '17
H2 '17
H1 '18
H2 '18
H1 '19
H2 '19
H1 '20
H2 '20
H1 '21
H2 '21
H1 '22
H2 '22
H1 '23
H2 '23
H1 '24
IT
2
2
3
1
2
1
4
1
3
2
2
-
4
3
-
3
2
2
1
2
PS
7
2
6
6
6
9
3
5
6
5
7
3
7
8
10
13
10
9
11
12
Private Equity Technology transactions
*Technology companies are represented by Information Technology Services (IT) and Packaged Software (PS) companies as categorised by FactSet.
The largest transaction across the ten-year period was Vista Equity Partners acquisition of Citrix Systems for $14.6b in Jan 22
Tech Insights #350
Private Equity buyouts
Mergers & acquisitions
Corporate finance advisory
Capital raising
14 October 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers.
Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Date
Country
Target
Description
Primary acquirer
Enterprise value
Revenue
Enterprise value / revenue
Oct 15
US
SolarWinds
Network management software and monitoring tools
Thoma Bravo
4,217
486
8.7x
Feb 16
NZ
Diligent Corp
SaaS governance platform
Insight Partners
361
99
3.6x
Dec 19
US
LogMeIn
Remote access software
Francisco Partners
4,409
990
4.5x
Jun 21
US
Cloudera
Data management and analytics solution
KKR
4,893
869
5.6x
Nov 21
US
McAfee Corp
Computer software company
Advent International
13,592
2,906
4.7x
Mar 22
US
Anaplan
Business planning and analysis platform
Thoma Bravo
9,348
592
15.8x
May 22
NZ
Pushpay
Donor management system
BGH Capital
1,097
203
5.4x
Aug 22
Australia
Nitro Software
Document management software
Potentia Capital
354
59
6.0x
Jan 23
US
Duck Creek
P&C insurance software
Vista Equity Partners
2,282
303
7.5x
Dec 23
US
Alteryx
Data analytics and visualisation platform
Insight Partners
4,178
970
4.3x
Selected notable Private Equity acquisitions since 2014 (USD $m)
Thoma Bravo last 20 technology transactions EV/revenue
-
5x
10x
15x
20x
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Vista Equity Partners last 10 technology transactions EV/revenue
-
2x
4x
6x
8x
10x
12x
1
2
3
4
5
6
7
8
9
10
Median revenue multiple 5.0x
Median revenue multiple 7.5x
20x+
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Sep 19
Mar 20
Sep 20
Mar 21
Sep 21
Mar 22
Sep 22
Mar 23
Sep 23
Mar 24
Sep 24
Tech Insights #349
Cloud Index as at 30 September 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
7 October 2024
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. As at 30 September 2024, the US Cloud Index is down 3% from the previous quarter to 5.8x EV / NTM revenue. It continues to move between a 5.0x and 7.5x multiple range. The ANZ Cloud Index recovered late in the quarter to stay flat at 6.9x, above the US Cloud Index. Over the last 12 months, the ANZ Cloud Index has increased by 19% versus a 2% decrease for the US Cloud Index. It is moving closer to its five-year average, while the US Cloud Index remains well below.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
7.5x
ANZ Cloud Index
Average
12MMA
Sep 24
6.9x
6.3x
Jun 24
6.9x
6.2x
Change
0%
0%
Sep 23
5.8x
5.6x
Change
19%
12%
US Cloud Index
Average
12MMA
Sep 24
5.8x
6.2x
Jun 24
6.0x
6.3x
Change
(3%)
(3%)
Sep 23
5.9x
5.9x
Change
(2%)
4%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (18 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (87 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average.
11.0x
6.9x
5.8x
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Sep 24
-
10.0x
20.0x
30.0x
40.0x
Sep 19
Sep 20
Sep 21
Sep 22
Sep 23
Sep 24
75th percentile
Median
25th percentile
Tech Insights #349
Cloud Index as at 30 September 2024
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
7 October 2024
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
7.6x
5.0x
2.8x
8.9x
4.4x
2.8x
US cloud companies
25th
75th
30 Sep 2024
Average
percentile
Median
percentile
EV (NZD $m)
33,775
2,708
8,574
23,502
EV / NTM rev
5.8x
2.8x
5.0x
7.6x
Revenue growth (NTM)
11%
5%
11%
20%
EV / LTM rev
7.0x
3.2x
5.8x
9.9x
Revenue growth (LTM)
18%
11%
17%
25%
Operating margin
(6%)
(17%)
(3%)
7%
ANZ cloud companies
25th
75th
30 Sep 2024
Average
percentile
Median
percentile
EV (NZD $m)
5,641
574
1,179
2,773
EV / NTM rev
6.9x
2.8x
4.4x
8.9x
Revenue growth (NTM)
12%
0%
10%
19%
EV / LTM rev
8.7x
3.5x
5.4x
10.3x
Revenue growth (LTM)
18%
7%
17%
27%
Operating margin
18%
0%
21%
33%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months.
Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Paypal Revolut Payoneer
Comment
+52.4% consumer revenue CAGR
+54.5% business revenue CAGR
-
Gross margin increase from 62.1% to 71.1%
-
PBT margin increase from 5.7% to 31.3%
481
611
445
485
237
815
-
400
800
1,200
1,600
Profit before tax (PBT)
Other income / (expense)
Cost of sales**
Interest income
Business revenue
Consumer revenue
10
100
68
-
27
151
-
400
800
1,200
1,600
Profit before tax (PBT)
Other income / (expense)
Cost of sales**
Interest income
Business revenue
Consumer revenue
Tech Insights #348
Wise (formerly TransferWise)
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
30 September 2024
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Overview
Wise (previously TransferWise) provides cross-border payments solutions. It listed on the London Stock Exchange via a direct listing in 2021. Customers can hold and send money in over 40 currencies through Wise’s two main offerings: the Wise Account (consumer) and Wise Business (business). Since 2019, Wise has experienced 764% revenue growth, supported by a 3.9x increase in active customers and rising interest income generated from customer balances.
Operating metrics – FY19 vs FY24 (31 March year-end)
Revenue by geography from FY19 to FY24
Wise profit before tax breakdown – FY19 vs FY24 (£m)
Active customers
(m)
Cross-border volume*
(£bn)
Volume per customer (£000s)
3.2
12.2
0.1
0.6
-
5
10
15
FY19
FY24
Personal
Business
7.0
7.1
39.4
52.2
-
20
40
60
FY19
FY24
Personal
Business
22.5
87.2
4.7
31.3
-
50
100
150
FY19
FY24
Business
Consumer
*Cross-border volume is the dollar sum of transactions between currencies
-
50
100
150
200
250
300
350
Rest of theworld
UK
North America
Asia-Pacific
Europe (excl.UK)
FY19
FY24
FY19
FY24
**Includes benefits paid relating to customer balances and net credit losses on financial assets
0.63%
0.65%
0.67%
-
0.2%
0.4%
0.6%
0.8%
1.0%
FY22
FY23
FY24
53
162
16
154
71
169
-
100
200
300
400
500
FY22
FY23
FY24
Listed bonds
Money market funds
Cash at bank
Tech Insights #348
Wise (formerly TransferWise)
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Disclaimer The information provided in this report has been solely sourced from FactSet and company annual reports. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
30 September 2024
Total customer balances (£bn)
7
11
13
-
3
6
9
12
15
FY22
FY23
FY24
Cross-border payment players’ interest income (£m)
Share price index since August 21**
Take rate*
Interest income (£m)
0.1%
1.3%
3.6%
-
1%
2%
3%
4%
FY22
FY23
FY24
Interest as a % of balance
**Note Wise went public on & 7 July 2021. Revolut is not publicly listed.
Rising customer balances and high interest rates are driving interest income growth.
-
20
40
60
80
100
120
Aug 21
Feb 22
Aug 22
Feb 23
Aug 23
Feb 24
Aug 24
-
150
300
450
600
Year prior
Last year
This year
Payoneer
Wise
Revolut
Paypal
Year prior
Last year
This year
0.2%
0.6%
1.6%
0.3%
9.0%
27.8%
0.7%
14.2%
31.6%
0.6%
8.8%
27.8%
Interest income as % of total revenue
*Total cross-border revenue as a proportion of cross-border volume
CSL
F&P Healthcare
Cochlear
Sonic Healthcare
Pro Medicus
EBOS
Telix
Ansell
Healius
AFT Pharmaceuticals
Aroa
(10%)
-
10%
20%
30%
40%
50%
(20%)
-
20%
40%
60%
80%
LTM revenue growth
EBITDA margin
Tech Insights #347
NZ & AUS listed healthcare companies
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
23 September 2024
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Overview
This report focuses on listed healthcare companies headquartered in NZ and Australia. This list does not include aged care / service providers or companies with less than an NZD $100m enterprise value. It’s worth noting that the largest company on the NZX and the third largest on the ASX are both included in this grouping (Fisher and Paykel Healthcare on the NZX and CSL on the ASX).
Share price index for selected NZ healthcare companies since ‘19
Relative enterprise value (NZD $b)
Share price index for AUS companies that have gone 10x since ‘19
Revenue growth and EBITDA margin
-
1,000
2,000
3,000
4,000
5,000
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Pro Medicus
Telix
Neuren
Race Oncology
-
20
40
60
80
100
120
140
160
180
-
20
40
60
80
100
120
140
160
180
CSL
F&P Healthcare
Cochlear
Sonic Healthcare
Pro Medicus
Other (29 companies)
EBOS
Telix
Ansell
Healius
+
-
50
100
150
200
250
300
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
F&P Healthcare
EBOS
AFT Pharmaceuticals
Volpara
Aroa
(● NZ, ● AUS)
Tech Insights #347
NZ & AUS listed healthcare companies
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
23 September 2024
F&P Healthcare revenue (NZD $m) & EBITDA margin
Pro Medicus revenue (NZD $m) & EBITDA margin
Comparator metrics for largest NZ & AUS healthcare companies (NZD $m)
Name
Country
Overview
Enterprise value
LTM revenue
LTM revenue growth
LTM EBITDA margin
EV / Revenue
EV / EBITDA
CSL
AUS
Biopharmaceutical company (vaccines, plasma, antivenoms, etc.)
178,451
24,233
13%
32%
7x
23x
F&P Healthcare
NZ
Manufacturer of medical devices including respiratory products
22,118
1,758
11%
27%
13x
46x
Cochlear
AUS
Develop hearing implants and medical devices
20,096
2,441
14%
27%
8x
31x
Sonic Healthcare
AUS
Medical diagnostic services, including pathology and radiology
18,142
9,362
8%
16%
2x
12x
Pro Medicus
AUS
Healthcare software, offering radiology information systems
17,653
175
28%
75%
101x
135x
EBOS
NZ
Healthcare and animal care products distributor
8,443
14,257
7%
5%
1x
13x
Telix
AUS
Biopharmaceutical focused on cancer diagnosis and treatment
6,611
542
209%
12%
12x
105x
Ansell
AUS
Manufacturer of medical protective clothing and gloves
4,129
2,671
(1%)
17%
2x
9x
Healius
AUS
Medical diagnostic services, including pathology and imaging
2,874
1,888
1%
18%
2x
8x
AFT Pharmaceuticals
NZ
Developer and distributor of pharmaceuticals
372
195
25%
13%
2x
14x
Aroa
NZ
Bioabsorbable medical products for tissue repair
156
69
9%
(11%)
2x
nm
Median
8,443
1,888
11%
17%
2x
19x
-
10%
20%
30%
40%
-
500
1,000
1,500
2,000
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA margin
Revenue
-
10%
20%
30%
40%
50%
60%
70%
80%
90%
-
20
40
60
80
100
120
140
160
180
FY19
FY20
FY21
FY22
FY23
FY24
EBITDA margin
Revenue
-
20
40
60
80
100
120
140
160
Tech Insights #346
ASX tech companies 2024
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 September 2024
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Overview
Major ASX tech companies have performed well since the start of 2023, with the overall ASX 200 Information Technology Index up 83%. Wisetech’s performance stands out, reaching over AUD $40b in enterprise value. NZ based Xero has also been a strong performer, with a 102% share price increase since the start of 2023 edging it closer to its all-time high in 2021. Shown on this page are the 20 largest ASX tech companies, 18 of which have an enterprise value of more than AUD $1b. The combined equity value of these companies (AUD $169b) is greater than the entire equity value of all companies on the NZX.
Share price index for the largest ASX tech companies
EV of 20 largest ASX tech companies - AUD $b
-
50
100
150
200
Jan 23
Mar 23
May 23
Jul 23
Sep 23
Nov 23
Jan 24
Mar 24
May 24
Jul 24
Sep 24
Wisetech
Xero
Computershare
REA
CAR Group
ASX 200 Information Technology Index
ASX 200 Index
Seek
NextDC
Wisetech
REA
Xero
Computershare
CAR Group
NextDC
Seek
Technology One
HUB24
Codan
IRESS
Domain
Macquarie Tech
Nuix
SiteMinder
Objective
MoneyMe
Megaport
Hansen
Data#3
Tech Insights #346
ASX tech companies 2024
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
16 September 2024
Name
Overview
Enterprise value
LTM revenue
LTM revenue growth
LTM EBITDA
EBITDA margin
EV / LTM revenue
EV / LTM EBITDA
Share price Δ since 2023
Wisetech
Logistics software provider
43,645
1,042
28%
502
48%
41.9x
87.0x
158%
REA
Real estate platform
26,512
1,677
20%
802
48%
15.8x
33.1x
80%
Xero
Accounting software
21,451
1,589
25%
483
30%
13.5x
44.4x
102%
Computershare
Shareholder services and technology solutions
17,720
4,453
(5%)
1,451
33%
4.0x
12.2x
7%
CAR Group
Digital marketplace for automotive sales
14,867
1,099
41%
568
52%
13.5x
26.2x
77%
NextDC
Data centre operator
9,350
404
12%
196
49%
23.1x
47.7x
93%
Seek
Online employment marketplace
9,142
1,084
(12%)
413
38%
8.4x
22.1x
7%
Technology One
Enterprise software for govt, education & healthcare
7,392
469
18%
195
41%
15.8x
38.0x
75%
HUB24
Investment and superannuation platforms
4,741
327
17%
92
28%
14.5x
51.3x
115%
Codan
Develop and manufacture electronic solutions
2,810
550
21%
148
27%
5.1x
19.0x
261%
IRESS
Financial software solutions
2,179
617
(1%)
76
12%
3.5x
28.7x
2%
Domain
Property marketplace
1,965
391
13%
137
35%
5.0x
14.3x
3%
Macquarie Tech
Technology and data centre services
1,854
363
5%
109
30%
5.1x
17.0x
32%
Nuix
Data analytics for legal, regulatory & cybersecurity
1,771
221
21%
67
30%
8.0x
26.4x
764%
Objective
Enterprise solutions for govt & regulated industries
1,323
115
5%
42
37%
11.5x
31.3x
11%
SiteMinder
Hotel commerce platform
1,296
191
26%
0
0%
6.8x
nm
65%
MoneyMe
Fintech offering digital credit products
1,181
214
(10%)
156
73%
5.5x
7.6x
(56%)
Megaport
Cloud connectivity and data transfer
1,164
195
28%
42
21%
6.0x
27.7x
20%
Data#3
IT services provider
947
806
0%
61
8%
1.2x
15.6x
14%
Hansen
Billing and customer care software
936
353
13%
92
26%
2.7x
10.2x
(15%)
Median
2,494
437
15%
142
32%
7.4x
26.4x
48%
Comparator metrics for 20 largest ASX tech companies – AUD $m
Tech Insights #345
LawVu Hnry Joyous Thematic Tracksuit Throughline Sunfed FirstAML Partly Group Mint Innovation Openstar Technologies Relay.ai Cotiss NextWork SafeStack Excellent Energybank Orbis Blockchain Technologies Veve Supaloyal Machine Learning Solutions Multitudes Vessev Freightfish Seachange New Zealand Halter Ao Air Ask Nicely Authsignal Vertus Energy Easyrent Kiki Soul Aether Foundry Lab Partly Group Joyous Vend Fergus insiteAI mooven Hnry bspkl Zerojet Kara Technologies Dexibit CarbonClick Cotiss Runn Hectre insiteai Auror Komodo Kry10 Vend MenuAid Appetise Data Masque Runn Fuel50 Auror CodeLingo AirTree Ventures Blackbird Ventures Square Peg Capital Equity Venture Partners Investible Afterwork Folklore OIF Shearwater Reinventure
Australian Venture Capital
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 September 2024
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Total
AirTree Ventures
4
SquarePeg Capital
3
Equity Venture Partners
4
Investible
5
Reinventure
2
Folklore
4
Afterwork
4
OIF
2
Shearwater
2
Blackbird Ventures
25
55
Overview
This Tech Insights report presents a select group of Australian Venture Capital firms with a presence in New Zealand. On the first page we present their investments or acquisitions through time, with the second page presenting the level of ownership of active New Zealand investments (where available from the Companies Register).
Transactions by investor (first investment date, grey indicates an exited company)
2012
2014
2016
2018
2020
2022
2024
2017
2018
2019
2020
2021
2022
2023
2024
Blackbird Ventures
Tech Insights #345
Australian Venture Capital
Mergers & acquisitions
Corporate finance advisory
Capital raising
9 September 2024
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Disclaimer The information provided in this report has been solely sourced from the New Zealand Companies Office and FactSet. Clare Capital holds no responsibility over the
actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
5%
10%
15%
20%
25%
30%
35%
40%
Founded date
2014
2012
2014
2014
2014
2013
2017
2016
2012
2012
Active
4
2
4
5
2
3
4
2
2
24
Exit
-
1
-
-
-
1
-
-
-
1
25th percentile
8.9%
8.6%
3.6%
6.0%
15.3%
18.8%
4.6%
30.6%
2.6%
6.6%
Median
11.0%
9.7%
10.3%
7.2%
18.3%
19.9%
4.6%
31.8%
2.6%
11.7%
75th percentile
14.3%
10.7%
18.3%
7.9%
21.3%
21.0%
4.6%
33.0%
2.6%
16.2%
Current investor ownership % (where available per Companies Register)
Tech Insights #344
Australian Private Equity
Mergers & acquisitions
Corporate finance advisory
Capital raising
2 September 2024
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Total
Adamantem Capital
3
Allegro Funds
3
BGH Capital
4
Five V Capital
5
Pacific Equity Partners
7
Quadrant Private Equity
9
Next Capital
5
Crescent Capital
3
Mercury Capital
5
Advent Partners
2
Potentia
1
47
Overview
This Tech Insights report presents a select group of Australian Private Equity firms with a presence in New Zealand. On the first page we present their investments or acquisitions through time, with the second page presenting the level of ownership of active New Zealand investments (where available from the Companies Register).
Transactions by investor (first investment date, grey indicates an exited company)
2006
2008
2010
2012
2014
2016
2018
2020
2022
2024
2000 to 2006
Tech Insights #344
Australian Private Equity
Mergers & acquisitions
Corporate finance advisory
Capital raising
2 September 2024
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Disclaimer The information provided in this report has been solely sourced from the New Zealand Companies Office and FactSet. Clare Capital holds no responsibility over the
actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
20%
40%
60%
80%
100%
Founded date
2016
2004
2017
2016
1998
1996
2005
2000
2010
1984
2014
Active
3
1
4
3
2
4
3
1
1
2
1
Exit
-
2
-
2
5
5
2
2
4
-
-
Median
76.0%
73.4%
69.1%
81.5%
59.0%
37.1%
65.2%
84.9%
88.9%
56.3%
19.9%
Current active investor ownership % (where available per Companies Register)
Bastion Security Group includes Helix Security, ZX Security and Quantum Security.
Heritage Lifecare Hellers Evnex Gull Hannahs / Number one shoes Carpet Court New Zealand Pushpay Holdings CyberCX Fusion5 Abano Healthcare Group Mooven Habit Health Orbit Remit Totara Learning Solutions Education Perfect UP Education FirstCape ACG Education Manuka Health Griffins Foods Asahi Beverages (NZ) Frucor Beverages / Frucor Suntory Helix Security Services ZX Security Quantum Security Services Bastion Security Group New Zealand Health Group Sunfed Nestle SA / NZ Seniors Money International Summerset Group Holdings Kathmandu Jucy Group Hirepool Ltd New Zealand Bus Vitaco Health Group Go Bus Transport Prime Panels New Zealand Metro Performance Glass Kiwi Fresh Orange co / Simply Squeezed Tamaki Health Group International Volunteer HQ Blue Star Group NXP Limited Hexagon Holdings Integrated Control Technology Flintfox International Vista Group
-
0.5
1.0
1.5
2.0
2.5
3.0
Shopify
PayPal
Wisetech
Riskified
Vista
Olo
Atlassian
Life360
Unity
Block
Clearwater
AvidXchange
Palantir
Paycom
Q2
Veeva
Xero
2U
Datadog
UiPath
Jfrog
AppFolio
Ansarada
DigitalOcean
Fastly
CrowdStrike
ServiceNow
Sprout
Cloudflare
Snowflake
Squarespace
BigCommerce
Zscaler
Twilio
Autodesk
Samsara
Klaviyo
Workday
SentinelOne
Appian
Braze
nCino
Agora
Elastic
Jamf
Tenable
monday.com
Five9
Adobe
Objective
Workiva
Bill
Qualys
Gitlab
Paylocity
Okta
Dynatrace
Confluent
Wix.com
Nuix
Sprinklr
Procore
HubSpot
Couchbase
BlackLine
Kaltura
Smartsheet
Freshworks
AvePoint
RingCentral
CS
MongoDB
DocuSign
Everbridge
Zuora
Asana
Toast
Salesforce
HashiCorp
Definitive
ZoomInfo
WalkMe
PagerDuty
Amplitude
C3.ai
Dropbox
ON24
Box
Domo
Overview
SaaS Magic Number is a metric for SaaS companies that examines the level of sales and marketing (S&M) spending required to generate new revenue. The calculation tells you how much new annualised revenue the company generated for every $1.00 spent on sales and marketing. For example, a SaaS Magic Number of 0.7 means that for every $1.00 spent on S&M, $0.70 of new annual revenue is achieved. A company with a well-performing sales engine that has a SaaS Magic Number of 1.0 shows it will take one year to recover the corresponding S&M expense to gain that revenue. A company with a poor-performing sales engine that has a SaaS Magic Number of 0.5 or less will extend this period out to two or more years.
Tech Insights #343
SaaS Magic Number
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 August 2024
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SaaS Magic Number Formula
(Current quarter revenue –
previous quarter revenue) x 4
Previous quarter S&M spend
Key
US Listed
ASX or NZX Listed
Companies > 0.75
Good sales efficiency
Could spend more in S&M
Companies < 0.5
Poor sales efficiency
Rethink how S&M is spent
3.0+
Companies 0.75 – 0.5
Neutral sales efficiency
SaaS Magic Number as at December 2023
The following charts examine the performance of 89 selected companies from the Clare Capital Cloud Index.
Median
Dec 2021
0.80
Dec 2022
0.59
Dec 2023
0.50
Quarter-on-quarter revenue growth (December 2023)
-
20%
40%
60%
Shopify
PayPal
Wisetech
Riskified
Vista
Olo
Atlassian
Life360
Unity
Block
Clearwater
AvidXchange
Palantir
Paycom
Q2
Veeva
Xero
2U
Datadog
UiPath
Jfrog
AppFolio
Ansarada
DigitalOcean
Fastly
CrowdStrike
ServiceNow
Sprout
Cloudflare
Snowflake
Squarespace
BigCommerce
Zscaler
Twilio
Autodesk
Samsara
Klaviyo
Workday
SentinelOne
Appian
Braze
nCino
Agora
Elastic
Jamf
Tenable
monday.com
Five9
Adobe
Objective
Workiva
Bill
Qualys
Gitlab
Paylocity
Okta
Dynatrace
Confluent
Wix.com
Nuix
Sprinklr
Procore
HubSpot
Couchbase
BlackLine
Kaltura
Smartsheet
Freshworks
AvePoint
RingCentral
CS
MongoDB
DocuSign
Everbridge
Zuora
Asana
Toast
Salesforce
HashiCorp
Definitive
ZoomInfo
WalkMe
PagerDuty
Amplitude
C3.ai
Dropbox
ON24
Box
Domo
-
5%
10%
15%
20%
Tech Insights #343
SaaS Magic Number
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
26 August 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Over the last three years, the median revenue growth has deteriorated.
Over the last three years, the median sales and marketing spend as a % of revenue has decreased.
20%+
Companies that have a high SaaS Magic Number are growing revenue at a faster rate.
Companies that have a high SaaS Magic Number are spending less as a % of total revenue.
Sales & marketing spend % revenue (December 2023)
Median
Dec 2021
8.2%
Dec 2022
5.7%
Dec 2023
4.6%
Median
Dec 2021
42.9%
Dec 2022
41.3%
Dec 2023
36.4%
Tech Insights #342
Kogan.com and Mighty Ape
Mergers & acquisitions
Corporate finance advisory
Capital raising
19 August 2024
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Overview
Kogan.com is an Australian online retailer offering a diverse range of products and services, including consumer electronics, homewares, mobile plans, and insurance. In March2014 the business officially launched in New Zealand, but it was unable to capture market share away from incumbents JB Hi-Fi, Harvey Norman, and Dick Smith (which Kogan.com later acquired the brand of in March 2016). In 2020, Kogan.com acquired local retailer Mighty Ape to increase its market presence in NZ. In this report we analyse MightyApe’s contribution to Kogan.com and compare financial metrics of the business to peers.
(10)
-
10
20
30
40
50
60
70
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Mighty Ape
Kogan
Kogan.com adjusted EBITDA split (AUD $m)
Since its acquisition MightyApe has consistently contributed positive EBITDA to Kogan.com.
-
100
200
300
400
500
600
700
800
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Mighty Ape (NZ)
Mighty Ape (AU)
Kogan (NZ)
Kogan (AU)
Kogan.com revenue split (AUD $m)
Kogan.com begun operating in NZ in 2014, but never reached a scale at which they were required to report NZ as its own segment (until 2021). We estimate that Kogan NZ’s share of total revenue was approx. 2% before acquiring Mighty Ape.
After acquiring the business Kogan has leveraged the scale within the existing business to double Mighty Ape’s revenue.
When first acquired, Mighty Ape represented just 10% of revenues but now contributes 31%.
Kogan.com acquired Mighty Ape for AUD $122 million in December 2020, bringing more than 690,000 unique customers and subscribers.
The total consideration comprised of four tranches with 70% for tranches one and two, and 15% each for three and four. AUD $56 million was paid on completion with the remainder subject to performance-based targets on normalised EBITDA.
Transaction highlights
Tech Insights #342
Kogan.com and Mighty Ape
Mergers & acquisitions
Corporate finance advisory
Capital raising
19 August 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers.
Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
-
100%
200%
300%
400%
500%
Aug 19
Feb 20
Aug 20
Feb 21
Aug 21
Feb 22
Aug 22
Feb 23
Aug 23
Feb 24
Aug 24
Harvey Norman
Briscoes
The Warehouse
The Reject Shop
ASX 200
Kogan.com
Exchange
Year end
1-yr share price change
Enterprise value ($m)
LTM revenue ($m)
LTM revenue growth (%)
Gross margin (%)
LTM EBITDA ($m)
EBITDA margin (%)
EV / LTM revenue
EV / LTM EBITDA
Harvey Norman
ASX
Jun
29.2%
6,648
3,901
(6.1)
32.0
824
21.1
1.7x
8.1x
Briscoe Group
NZX
Jan
(5.1%)
700
733
2.2
42.4
146
19.9
1.0x
4.8x
Warehouse Group
NZX
Jul
(29.5%)
409
2,978
(0.6)
34.2
250
8.4
0.1x
1.6x
The Reject Shop
ASX
Jun
(35.7%)
51
838
4.3
39.7
124
14.8
0.1x
0.4x
Kogan.com
ASX
Jun
(23.9%)
361
461
(19.5)
35.3
40
8.7
0.8x
9.0x
Median
(23.9%)
409
838
(0.6)
35.3
146
14.8
0.8x
4.8x
Selected comparable financial metrics as of 16 Aug 24 (AUD)
Revenue share by product / division (AUD $m)
Indexed price returns from Aug 19
37%
32%
32%
17%
64%
14%
5%
-
100
200
300
400
500
FY23
FY18
Exclusive brands
MightyApe
Third party brands
Other
Other includes, Kogan First, Marketplace, Mobile, Money, Advertising and other.
Mighty Ape acquisition
* Gross margin is calculated from sales of products to customers less cost of goods sold and does not include other revenue.
-
5%
10%
15%
20%
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
-
1%
2%
3%
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
83%
66%
56%
66%
71%
22%
27%
19%
17%
78%
9%
13%
9%
10%
-
50
100
150
Rabobank
Kiwibank
ASB
BNZ
Westpac
ANZ
Housing loans
Business loans
Agriculture loans
Other loans
Consumer loans
29%
19%
19%
19%
5%
3%
-
100
200
300
400
500
600
700
Total assets (NZ $b)
ANZ
Westpac
BNZ
ASB
Kiwibank
Rabobank
NZ bank market share - by total assets (NZD $b) – Mar 24
Tech Insights #341
New Zealand banking overview
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 August 2024
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Overview
This report looks into the New Zealand (NZ) banking sector. The four largest banks are all Australian owned, however this analysis only covers New Zealand banking activity. Kiwibank, the fifth largest, is significantly smaller and owned by the NZ Government. Rabobank, the sixth largest, is owned by Dutch bank, Rabobank Nederland. The second page of this report looks at the new capital requirements which was phased in from Jul 22. All information in this report, unless stated otherwise, is as at Mar 24.
Breakdown of largest NZ loan books (NZD $b) – Mar 24
6%
Major banks’ return on equity (ROE)
ROE is the ratio of profit after tax to average equity. ROE is an indicator of how efficiently shareholder funds are used to generate profits. The scale and operating expense efficiency of the larger banks contributes to their higher ROE.
Annual net interest margins (NIM) – last 7 years
Net interest income is the primary driver of NZ banks’ earnings. The NIM ratio of net interest income to average interest-bearing assets, is an indicator of how efficiently funding generates revenue. The recent period of rising interest rates has contributed to the rising NIM.
Mar 18 – Mar 24
Mar 18 – Mar 24
Other banks
Housing loans in NZ total to $352b
Minimum total capital requirements, including Prudential Capital Buffer (PCB) – to be phased in by Jul 28
•
The total capital requirements for New Zealand banks are changing. The transition period started in Jul 22 and banks have a seven-year period to meet the capital requirements shown in the graph.
•
The four largest banks (ANZ, Westpac, BNZ and ASB) have been identified as Domestic Systemically Important Banks (DSIBs). These banks are subject to the DSIB buffer which requires them to hold an additional layer of capital, the extra insurance acknowledgment that failure of one of these banks would have serious consequences.
•
The counter-cyclical capital buffer, normally set at 1.5%, may be set at higher or lower levels in times of excessive credit build-up or during post-recession recovery.
•
The conservation buffer is designed to ensure banks can absorb losses during economic and financial stress.
Tech Insights #341
New Zealand banking overview
Page 2 of 2
Disclaimer The information provided in this report has been sourced and calculated the RBNZ Bank Financial Strength Dashboard. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
12 August 2024
Large banks (DSIBs) - total capital ratios as at Mar 24
The large banks (DSIBs) will need to continue to increase capital levels over the remaining four years of the transition, to reach the requirements by Jul 28. This totals ~$20b of additional capital, across all banks, since the start of the period.
8%
9%
9%
2.5%
5.5%
5.5%
1.5%
1.5%
2%
-
5%
10%
15%
20%
All banks(pre-2022)
Largebanks(DSIBs)
Otherbanks
% of Risk Weighted Assets (RWA)
DSIB buffer
Counter-cyclicalcapital buffer
Conservation buffer
Total capital ratio
PCB
Other banks - total capital ratios as at Mar 24
Some smaller banks have already reached the required minimum total capital levels.
-
5%
10%
15%
20%
ANZ
Westpac
BNZ
ASB
% of RWA
Minimum capital requirement (18% - 2028)
-
5%
10%
15%
20%
Kiwibank
Rabobank
TSB
SBS
Bank ofChina
Heartland
% of RWA
Minimum capital requirement (16% - 2028)
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394
225
211
187
118
84
25
-
100
200
300
400
500
Tech Insights #340
The Unicorn Club
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 August 2024
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Overview
A unicorn is a private company with a valuation that exceeds USD $1b. The term was first used by venture capitalist Aileen Lee in 2013, highlighting the rarity of a privately held start-up to reach such a valuation. This Tech Insights report looks at unicorn trends and a breakdown by industry and geography, as well as more closely at selected unicorn companies vs key competitors/comparators within relative industries.
Top 15 unicorns (by estimated valuation) as of May 2024*
Unicorns by broad industry (#)*
Unicorns by country (#)*
Company
Valuation (USD $bn)
Country
Industry
China
Media (TikTok)
US
Industrials
US
Enterprise tech
US
Financial services
Singapore
Consumer & retail
US
Enterprise tech
UK
Financial services
US
Consumer & retail
Australia
Enterprise tech
US
Financial services
US
Enterprise tech
US
Media (Gaming)
NZ
Financial services
US
Enterprise tech
US
Enterprise tech
There are approximately 1,200 unicorn companies worldwide.
17
18
19
20
24
25
31
32
40
43
66
70
80
210
268
665
168
70
56
31
27
23
9
193
-
200
400
600
800
*Unicorn data sourced from CB Insights.
Xiahongshu
-
2x
4x
6x
8x
10x
12x
14x
16x
-
50
100
150
200
250
300
350
400
GAP
Shein
Inditex (Zara)
H&M
Alibaba
Enterprise value (USD $m)
EV/Rev (RHS)
-
10x
20x
30x
40x
50x
60x
70x
-
5
10
15
20
25
30
35
TechnologyOne
Altium
Seek
Xero
Canva
WisetchGlobal
Enterprise value (USD $b)
EV/Rev (RHS)
-
5x
10x
15x
20x
25x
-
5
10
15
20
25
Allfunds Group
HUB24
Envestnet
Netwealth
FNZ
SS&C
Enterprise value (USD $b)
EV/Rev (RHS)
44
-
2x
4x
6x
8x
10x
12x
-
200
400
600
800
1,000
1,200
Snap inc
X
Bytedance
Meta
Enterprise value (USD $b)
EV/Rev (RHS)
Tech Insights #340
The Unicorn Club
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and CB Insights. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
5 August 2024
Bytedance vs comparative technology companies
Shein vs global manufacturing comparators
FNZ vs global FinTech companies
Canva vs ASX listed tech companies
Based on the purchase price for the business in 2022.
1,281
+
-
20%
40%
60%
80%
100%
FY19
FY23
-
20%
40%
60%
80%
100%
FY19
FY23
Tech Insights #339
Gentrack hits one billion in market cap
Page 1 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
29 July 2024
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Overview
Gentrack listed on the NZX in 2014 as a provider of utility and airport software solutions. Gentrack experienced close to no revenue growth between FY18-FY21 and saw a resulting fall in its share price. The company has subsequently rebounded, with an 8x increase in share price between July 2022 and July 2024. This has been driven by rediscovered revenue growth. Note: Gentrack has a September financial year end.
-
2
4
6
8
10
12
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Revenue (NZD $m) and EBITDA margin
Revenue by geography
Share price since IPO (NZD)
Revenue by sector
UK
UK
AUS
AUS
ROW
ROW
NZ
NZ
-
10%
20%
30%
-
100
200
300
FY18
FY19
FY20
FY21
FY22
FY23
FY24
Recurring revene
Other revenue
EBITDA margin
Utilities
Utilities
Airports
Airports
Company guidance
8x increase in share price over two-year period
EV / revenue = 1x
EV / revenue = 3x
EV / revenue = 7.5x
Gary Miles appointed CEO
Sept year end
Market cap exceeds NZD $1b
Tech Insights #339
Gentrack hits one billion in market cap
Page 2 of 2
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet and public information. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
29 July 2024
Country
Description
EV
LTM Revenue
Revenue growth
LTM EBITDA
EBITDA margin
EV / Rev
EV / EBITDA
1yr share price Δ
ikeGPS
NZ
Software for GPS capture devices
110
21
(31%)
(12)
(55%)
5x
nm
1%
Energy One
AUS
Software for electricity and gas industry
168
53
28%
11
20%
3x
16x
22%
EROAD
NZ
Software and hardware for fleet management
205
178
11%
42
24%
1x
5x
(8%)
Serko
NZ
Software for corporate travel
358
69
48%
(4)
(6%)
5x
nm
(9%)
ReadyTech
AUS
Software for various industries
405
119
20%
36
30%
3x
11x
1%
Vista
NZ
Software for the cinema industry
569
143
6%
12
9%
4x
46x
33%
Hansen Tech.
AUS
Software for energy, water and communication
884
357
10%
112
31%
2x
8x
(14%)
Nuix
AUS
Software for analytics and intelligence
1,061
209
23%
32
15%
5x
33x
131%
Vertex
USA
Software for tax compliance solutions
6,207
979
20%
151
15%
6x
41x
107%
Wisetech
AUS
Software for logistics industries
31,173
1,016
27%
460
45%
31x
68x
12%
Gentrack
NZ
Software for utilities and airports
1,149
188
22%
25
14%
6x
45x
135%
Median
569
178
20%
32
15%
5x
33x
12%
Selected comparators (NZD $m)
Revenue per employee (NZD $000s)
Selected NZX tech companies: EV / LTM revenue since 2020
-
2x
4x
6x
8x
10x
Jan 20
Jul 20
Jan 21
Jul 21
Jan 22
Jul 22
Jan 23
Jul 23
Jan 24
Jul 24
-
50
100
150
200
FY18
FY19
FY20
FY21
FY22
FY23
Tech Insights #338
Blackpearl Group
Mergers & acquisitions
Corporate finance advisory
Capital raising
22 July 2024
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-
0.2
0.4
0.6
0.8
1.0
1.2
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Mar 24
Jun 24
Overview
Blackpearl Group, a SaaS company specialising in digital marketing and email management tools for SMBs, listed on the NZX in December 2022. In March 2023, it launched Pearl Diver, a tool that converts anonymous website traffic into insights and potential leads. The company has experienced significant growth since Pearl Diver's launch and as of the June quarter reported reaching $8.6 million in Annual Recurring Revenue (ARR), almost triple that of June 2023 and translating to $252,000 of ARR per employee.
Financial summary as reported at March ($000s)
Item
Units
FY22
FY23
FY24
Ending ARR
$000s
NA
2,650
7,400
ARR per employee
$000s
NA
50
230
Subscription revenue
$000s
727
1,431
4,053
Gross profit
$000s
192
701
2,891
EBITDA
$000s
(4,383)
(6,724)
(5,822)
Revenue growth (yoy)
%
NA
97%
183%
Gross margin
%
27%
49%
71%
Revenue churn
%
NA
3%
4%
Blackpearl share price (NZD) from first trade date (12 Dec 22)
19 Jul 24EV / Revenue = 9.7x
EV / ARR = 4.6x
Blackpearl Group operating breakdown as reported at March ($000s)
FY22
FY24
4,053
(5,822)
1,162
99
(3,322)
(3,879)
(1,611)
(6,000)
(3,000)
-
3,000
6,000
Subscription revenue
Cost of sales
Other revenue
Personnel
Operating
Administrative
EBITDA
727
(2,565)
(4,383)
534
171
(1,731)
(450)
(6,000)
(3,000)
-
3,000
6,000
Subscription revenue
Cost of sales
Other revenue
Personnel
Operating
Administrative
EBITDA
In FY24, $1.3m of recorded revenue came via Newoldstamp which was acquired in FY23.
NA = not available.
Tech Insights #338
Blackpearl Group
Mergers & acquisitions
Corporate finance advisory
Capital raising
22 July 2024
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare
Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Listing date
IPO offer price
Share price
Enterprise value ($m)
LTM revenue ($m)
LTM revenue growth (%)
Gross margin estimate (%)
LTM EBITDA ($m)
EBITDA margin (%)
EV / LTM revenue
LTM Revenue / FTE (000s)
Gentrack
Jun 14
2.40
10.80
1,090
188
22.2
NA
25.5
13.6
5.8x
251
Vista Group
Aug 14
2.35
2.37
586
143
5.8
62.7
12.4
8.7
4.1x
200
Serko
Jun 14
1.10
3.80
392
69
47.9
82.3
(4.0)
(5.8)
5.7x
198
EROAD
Aug 14
3.00
1.34
259
178
11.4
84.2
42.0
23.6
1.5x
366
ikeGPS
Jul 14
1.10
0.46
66
21
(31.5)
60.2
(11.6)
(54.9)
3.1x
240
PaySauce
Dec 18
0.18
0.25
36
8
32.8
76.9
(1.1)
(14.0)
4.7x
185
Blackpearl Group
Dec 22
1.25
0.76
39
4
183.3
71.3
(5.8)
(143.1)
9.7x
119
Median
259
69
22.2
74.1
(1.1)
(5.8)
4.7x
200
Selected financial metrics as of 19 Jul 24
-
2
4
6
8
10
12
14
16
18
Dec 22
Mar 23
Jun 23
Sep 23
Dec 23
Mar 24
Jun 24
Sep 24P
Dec 24P
Mar 25P
Blackpearl ARR (reported and Clare Capital projection) ($m)
From Dec 22 to Jun 24 the cumulative monthly growth rate of ARR was 6.7% (or as a CAGR is 118%)
Projection*
Actuals
FY24 revenue by geography and product ($000s)
*ARR is projected using a 7.5% monthly growth rate.
Pearl Diver
Newoldstamp
Total
United States
2,514
779
3,293
Australia
110
71
181
Canada
31
81
112
United Kingdom
25
72
97
New Zealand
78
12
89
Other
34
247
281
Total subscription revenue
2,792
1,261
4,053
Topicus, Jonas, Volaris, Vela, Perseus, Harris
-
10
20
30
40
-
200
400
600
800
Jan 17
Jan 18
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Quarterly transactions
Share price index
Tech Insights #337
Constellation Software buy and hold
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Mergers & acquisitionsCorporate finance advisoryCapital raising
15 July 2024
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Constellation Software: share price vs transactions since 2017
-
200%
400%
600%
SAP
Salesforce
Oracle
Adobe
Intuit
Constellation
Share price Δ since 2017
Overview
Constellation Software specialises in the acquisition and management of software companies (buy and hold). It operates through six operating companies, each of which focus on acquisitions in specific software verticals. The business model focuses on valuation arbitrage where companies with lower valuation multiples than Constellation Software are acquired. The success of this is shown through impressive share price performance, revenue growth and EBITDA margins.
Note: Clare Capital Tech Insights report #60 also focuses on Constellation Software. It can be found on our website.
Operating companies
-
1x
2x
3x
1
2
3
4
5
6
7
8
9
10
Company acquired
(10%)
-
10%
20%
30%
40%
50%
60%
2017
2018
2019
2020
2021
2022
2023
EBITDA margin
Inorganicrevenue growth(through M&A)
Organicrevenue growth
Tech Insights #337
Constellation Software buy and hold
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Disclaimer The information provided in this report has been solely sourced and calculated from FactSet. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
15 July 2024
Constellation Software 40% rule
Revenue multiple for Constellation Software transactions since ‘20
Constellation Software EV / EBITDA
Constellation Software EV / Revenue
Note: These are only the transactions where a valuation multiple is provided (the minority of transactions)
40%
Median: 1.4x
+
-
1x
2x
3x
4x
5x
6x
7x
8x
9x
Jan 17
Jan 18
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
-
5x
10x
15x
20x
25x
30x
Jan 17
Jan 18
Jan 19
Jan 20
Jan 21
Jan 22
Jan 23
Jan 24
Median: 6.2x
Median: 23.1x
Tech Insights #336
Olympic fashion
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Mergers & acquisitionsCorporate finance advisoryCapital raising
8 July 2024
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Overview
Millions of sports fans are expected to descend on Paris when the 2024 Olympics open on the 26th of July. This Tech Insights report looks at a group of listed sports apparel manufacturers who are sure to feature in the home of fashion. Nike’s scale and Lululemon’s profitability both stand out. The financials on the second page show a mixed set of results, with more than half the companies experiencing a fall in share price over the last 5 years.
EV USD $m
-
10,000
20,000
30,000
40,000
50,000
60,000
-
20,000
40,000
60,000
80,000
100,000
120,000
-
1,000
2,000
3,000
4,000
5,000
6,000
7,000
Revenue USD $m (LTM)
EBITDA USD $m (LTM)
adidas
Lululemon
On
Skechers
ASICS
Puma
Columbia
Under Armour
Nike
adidas
Lululemon
On
Skechers
ASICS
Puma
Columbia
Under Armour
Nike
adidas
Lululemon
On
Skechers
ASICS
Puma
Columbia
Under Armour
Other Nike
products
Nike
Nike Footwear
Tech Insights #336
Olympic fashion
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Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Mergers & acquisitionsCorporate finance advisoryCapital raising
8 July 2024
EBITDA margin – average over the last two years
% of revenue from North America
-
5%
10%
15%
20%
25%
30%
-
10%
20%
30%
40%
50%
60%
70%
80%
Sportswear and footwear manufacturers USD $m
Name
Headquarters
Year founded
EV
LTM revenue
LTM EBITDA
EV / LTM revenue
EV / LTM EBITDA
LTM EBITDA margin
3yr revenue CAGR
Share price change (1yr)
Share price change (5yr)
Nike
USA
1964
115,142
51,362
7,543
2.2x
15x
15%
5%
(31%)
(10%)
adidas
Germany
1924
46,681
23,315
978
2.0x
48x
4%
1%
19%
(25%)
Lululemon
Canada
1998
37,211
9,827
2,629
3.8x
14x
27%
25%
(20%)
67%
On
Switzerland
2010
11,519
2,084
234
5.5x
49x
11%
60%
13%
NA
Skechers
USA
1992
11,280
8,250
1,053
1.4x
11x
13%
20%
27%
108%
ASICS
Japan
1949
11,170
3,916
550
2.9x
20x
14%
7%
96%
438%
Puma
Germany
1948
8,937
9,188
800
1.0x
11x
9%
13%
(22%)
(30%)
Columbia
USA
1938
4,186
3,437
452
1.2x
9x
13%
10%
(0%)
(23%)
Under Armour
USA
1996
3,367
5,702
379
0.6x
9x
7%
6%
(11%)
(75%)
Median
11,280
8,250
800
2.0x
14x
13%
10%
(0%)
(17%)
Mean
27,721
13,009
1,624
2.3x
21x
12%
16%
8%
56%
-
2.5x
5.0x
7.5x
10.0x
12.5x
15.0x
17.5x
20.0x
22.5x
25.0x
Jun 19
Dec 19
Jun 20
Dec 20
Jun 21
Dec 21
Jun 22
Dec 22
Jun 23
Dec 23
Jun 24
Tech Insights #335
Cloud Index as at 30 June 2024
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Mergers & acquisitionsCorporate finance advisoryCapital raising
1 July 2024
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Overview
This report looks at valuation multiples for cloud companies publicly listed in the United States, Australia and New Zealand. As at 30 June 2024, the US Cloud Index is down 10% from the previous quarter to 6.0x EV / NTM revenue and well below the five-year average of 11.3x. The ANZ Cloud Index stayed above the US Index and down 3% to 6.9x EV / NTM revenue. This is against the more positive backdrop of the S&P 500 Index, which hit an all-time high in June. Market commentary has primarily attributed the S&P 500 Index's strong performance to the magnificent seven stocks (Google, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla), which had a significant average stock price increase of 15.7% over the quarter. None of the magnificent seven stocks are in the Clare Capital Cloud Index.
NTM revenue multiple for cloud companies listed in the US and ANZ (EV / NTM revenue)
7.7x
ANZ Cloud Index
Average
12MMA
Jun 24
6.9x
6.2x
Mar 24
7.1x
6.0x
Change
(3%)
5%
Jun 23
6.0x
5.5x
Change
15%
14%
US Cloud Index
Average
12MMA
Jun 24
6.0x
6.3x
Mar 24
6.7x
6.3x
Change
(10%)
0%
Jun 23
6.4x
6.1x
Change
(7%)
4%
Note: Indices are calculated using a simple average (equal weighting), with the ANZ index (19 companies) comprising of companies that have a minimum NZD $250m market capitalisation versus NZD $500m for the US Index (87 companies). Avg = Average, NTM = Next 12 months, 12MMA = 12 month moving average
11.3x
6.9x
6.0x
Key:
US
ANZ
Average
12MMA
5yr avg
-
5.0x
10.0x
15.0x
20.0x
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
-
10.0x
20.0x
30.0x
40.0x
Jun 19
Jun 20
Jun 21
Jun 22
Jun 23
Jun 24
75th percentile
Median
25th percentile
Tech Insights #335
Cloud Index as at 30 June 2024
Page 2 of 2
Mergers & acquisitionsCorporate finance advisoryCapital raising
1 July 2024
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US cloud companies NTM revenue multiple
ANZ cloud companies NTM revenue multiple
8.4x
5.0x
3.3x
8.8x
4.5x
2.9x
US cloud companies
25th
75th
30 Jun 2024
Average
percentile
Median
percentile
EV (NZD $m)
32,637
3,339
8,872
21,156
EV / NTM rev
6.0x
3.3x
5.0x
8.4x
Revenue growth (NTM)
14%
7%
13%
21%
EV / LTM rev
7.1x
3.6x
6.0x
9.8x
Revenue growth (LTM)
17%
10%
17%
24%
Gross margin
73%
69%
75%
81%
Operating margin
(7%)
(17%)
(4%)
8%
FCF margin
21%
14%
21%
29%
ANZ cloud companies
25th
75th
30 Jun 2024
Average
percentile
Median
percentile
EV (NZD $m)
4,619
551
1,057
3,388
EV / NTM rev
6.9x
2.9x
4.5x
8.8x
Revenue growth (NTM)
21%
9%
14%
25%
EV / LTM rev
8.4x
3.8x
5.5x
9.9x
Revenue growth (LTM)
20%
7%
20%
29%
Gross margin
56%
30%
60%
81%
Operating margin
6%
(4%)
10%
22%
FCF margin
10%
3%
12%
18%
Note: The percentiles for each metric are calculated individually. Companies added or removed from each index take effect from the first day of the reported quarter.
EV = Enterprise Value, LTM = Last 12 months, NTM = Next 12 months, FCF = Unlevered free cash flow.
Disclaimer The information provided in this report has been solely sourced and calculated from S&P Global Market Intelligence. ClareCapital holds no responsibility over the actual numbers. ClareCapital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Tech Insights #334
English Premier League: pay to win
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 June 2024
Overview
This Tech Insights report examines the relationship between player expenditure and performance in the English Premier League (EPL). History has shown that clubs with significant financial backing have better chances of outperforming clubs with less resources. We look at a selection of league position finishes and their team salary across multiple seasons for comparison. The second page explores the largest transfer fees and whether top spending translated into trophies won.
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EPL squad salary (£m) comparison by league position)
Page 1 of 2
1st place
2nd place
3rd place
Avg. of remaining places
20th place (last)
In the 15/16 season, bookmaker odds for Leicester City to win stood at 5,000:1. They won the league and spent less on salaries than the team (Aston Villa) that placed last.
-
50
100
150
200
250
13/14
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
23/24
-
1.0
2.0
Chelsea FC
Manchester City
Manchester United
Arsenal FC
Liverpool FC
Tottenham Hotspur
Newcastle United
Aston Villa
West Ham United
Fulham FC
-
20
40
60
80
100
120
140
160
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
23/24
Tech Insights #334
English Premier League: pay to win
Mergers & acquisitionsCorporate finance advisoryCapital raising
24 June 2024
Top nominal EPL transfer fees across seasons (€m)
Page 2 of 2
Disclaimer The information provided in this report has been sourced from FBref, Spotrac, and Transfermarkt. Clare Capital holds no responsibility over the actual numbers. Clare Capital is not an Authorised Financial Adviser. If you are making investment decisions you should seek appropriate personalised financial advice.
Highest net expenditure (transfer fees) EPL clubs since 1992 (€bn)
Note that figures are all net cash outflows and trophies won are seasons since 1992 in the order of Premier League, FA Cup, Champions League, all other titles (such as Europa League), and the total won respectively.
Club
Pos
4th
4th
6th
2nd
3rd
3rd
4th
1st
6th
2nd
Player
Team
Annual salary (£m)
% of team salary
# matches played
Minutes played
Salary/min played
Kevin De Bruyne
Manchester City
20.8
10.3%
18
1,221
Casemiro
Manchester United
18.2
8.8%
25
1,982
Mohamed Salah
Liverpool FC
18.2
13.4%
32
2,534
Raheem Sterling
Chelsea FC
16.9
10.8%
31
1,978
Kai Havertz
Arsenal FC
14.6
8.8%
37
2,634
Top paid EPL players across a selection of teams for the 23/24 season
Position represents the league position of the club at the end of each season.
£17.0k
£9.2k
£7.2k
£8.5k
£5.5k
5x
7x
2x
13x
8x
3x
1x
11x
13x
6x
2x
19x
3x
9x
-
11x
1x
3x
2x
12x
-
-
-
2x
-
-
-
-
-
-
-
2x
-
-
-
1x
-
-
-
-
27
23
40
23
18
2
-
2
1
-
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