Hyve Group acquires Fintech Meetup for up to $55 million

Hyve Group acquires Fintech Meetup for up to $55 million

LONDON, UK: Hyve Group plc, the next-generation global events business, announced the acquisition of Fintech Meetup LLC, organiser of the leading U.S. based fintech facilitated meetings event, for an initial consideration of $5 million and contingent consideration of up to $50 million payable in 2024 and 2025, a bourse filing noted.

Hyve Group Board is committed to pursuing its omnichannel strategy, expanding into high growth sectors and diversifying geographically.

Since 2017 the Group has actively reduced its portfolio from 269 events to 63 events increasing average revenue per event by over five-fold on a pro forma basis. The revenues are also more diversified, higher quality and better balanced by sector and geography with revenue contribution from non-Russian events increasing from c.50% in FY17 to 73% in FY19 on a pro forma basis.

In response to the continuing conflict between Russia and Ukraine, the Board will review all options in relation to Hyve’s business in Russia and will update the market as appropriate in due course.

Fintech Meetup operates in a highly attractive, rapidly growing fintech market, previously identified as one of the key sectors of opportunity to accelerate Hyve’s omnichannel strategy.

Founded in 2021, Fintech Meetup has already become renowned as the leading virtual industry event in the U.S. fintech industry, having facilitated approximately 20,000 meetings for 2,100 participants in 2021 with planned expansion into in-person events in the U.S. in 2023 and significant potential for further geographical expansion.

The acquisition provides the Group with a unique opportunity to create the world’s largest virtual and in-person meetings programme for the fintech sector. Hyve will leverage Fintech Meetup’s deep industry knowledge and relationships, customer-enabling technologies and data-driven insights of target audiences.

Fintech Meetup is led by a highly regarded and experienced fintech industry executive, Jonathan Lear, who will join the Group on completion of the acquisition.

The business will be acquired from its founders, Anil D. Aggarwal and Simran Rekhi Aggarwal. Simran Aggarwal will continue to work with Hyve until April 2023 to ensure optimal integration and the success of the upcoming events.

In its first year Fintech Meetup generated revenue of US$1.3m and an EBITDA loss of US$3.8m in the year ended December 2021, as a result of significant set-up investment and launch costs in the first year of operation. In the year ending December 2022 revenues are expected to more than double and the business is expected to be EBITDA positive. Gross assets at completion are estimated to be approximately US$0.8m.

Mark Shashoua, CEO of Hyve Group plc said: “We are delighted to welcome Fintech Meetup to Hyve. In a short space of time, Fintech Meetup has delivered significant value to thousands of individuals and organisations across the industry, establishing itself as the hub for the sector.

Its flagship programme holds tremendous potential for growth and is a perfect fit for our business as we scale up our omnichannel strategy. Fintech Meetup operates in an important target sector for Hyve and will further strengthen our presence in a key strategic market in the US.”

Jonathan Lear, President of Fintech Meetup said: “We’re thrilled to become part of Hyve to accelerate the growth and transformation of all areas of fintech, banking and financial services through our ground-breaking events which focus on delivering significant value across the whole sector. Hyve’s solid track record of investing in and growing its acquisitions, including Shoptalk, gives us every confidence in the success of Fintech Meetup’s future.”

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