The last time we covered open banking infrastructure company Axway, was a little over a year ago in the wake of the company’s acquisition of e-invoicing specialist AdValvas. Today, the Scottsdale, Arizona-based firm is back in the fintech news headlines with another acquisition announcement. The firm has officially sealed the deal with core banking software vendor Sopra Banking Software by acquiring the company for $364 million (€330 million).
First announced in February, the acquisition will result in a 5,000-employee firm led by Axway CEO Patrick Donovan. Sopra Banking Software CEO Eric Bierry will take on the role of deputy CEO.
“The completion of the tie-up between Axway and Sopra Banking Software embodies a unique development opportunity, and the ambitious industrial project we have been working towards can finally come to life,” Axway CEO Patrick Donovan said. “We will be fully committed to this project and I am convinced that, together, our teams will achieve outstanding success.”
The road to the acquisition had more than a few twists and turns. In order to marshal the financing, Axway conducted a share capital increase with preferential subscription rights that amounted to approximately $144 million (€131 million) and secured new credit facilities amounting to $220 million (€200 million). With the capital raised, the acquisition received the required regulatory approvals to initiate the integration of the two companies. Axway noted in a statement that it has set a goal of approximately $772 million (€700 million) in revenue and approximately $110 million (€100 million) in profit on operating activities for 2025.
“Our industry-leading technology platforms and business software have a long and successful track record of driving the transformation of some of the world’s largest banking and financial institutions, and this alliance significantly strengthens our positions, offerings, technologies, and perspectives,” Eric Bierry said. “This operation provides a major opportunity to accelerate our value creation for all our stakeholders through a new Group of critical size with tenfold capabilities.”
Headquartered in Scottsdale, Arizona, and founded in 1999, Axway made its Finovate debut at FinovateSpring 2022. At the conference, the company demonstrated its Amplify PI Management Platform, an open independent platform for managing APIs across teams, the cloud, and third-party solutions. The platform enables financial institutions to leverage secure, pre-configured open banking APIs to build new solutions and business models using the institution’s existing infrastructure.
Recognized as a Leader in The Forrester Wave for API Management Software in Q3 of this year, Axway’s platform handles more than one million transactions every day for 11,000+ customers. These customers include nine out of the top 10 global manufacturers, three out of the four major credit card companies, and 17 out of 20 pharmaceutical manufacturers.