Swiss banking software technology provider Temenos has agreed to buy its British competitor, Fidessa Group in a deal for $1.96 billion. The transaction, which is subject to conditions, approvals, and regulatory clearances, will close in the first half of 2018.
Andreas Andreades, the Executive Chairman of Temenos, said that under the new agreement, the two firms “will create a global leader across financial services software.” He added, “We truly believe that this powerful combination will accelerate both companies complementary growth strategies in banking and capital markets and will enable us to cross-sell into our existing client bases and capture a greater share of the IT and software spend of banks especially as they move to the cloud.”
With Fidessa under its roof, Temenos plans to increase revenue growth by:
- Implementing its sales-focused model
- Broadening Fidessa’s product to cover software solutions from the front to the back office
- Continuing Fidessa’s strategy of providing software solutions across capital markets
- Leveraging cross-selling opportunities
The deal is expected to expand Temenos’ relationship with Tier 1 and Tier 2 banks across the globe and deepen the company’s relationships and knowledge in the U.S. and Japan to grow its core banking business. At the same time, Fidessa will benefit from a larger client base. “We are convinced that our combined company will have a unique set of capabilities that when combined with our exceptional people will position us as a core strategic partner to large financial institutions globally looking to upgrade their systems for the digital age,” Andreades said.
Founded in 1993, Temenos debuted its Connect Mobile Banking application at FinovateEurope 2015 in London. Late last year, the company teamed up with Latin America’s largest banking group, Itaú Unibanco Holding. Temenos employs 4,600+ people, operating out of 64 offices. The company’s systems serve more than 2,000 clients in over 150 countries. Temenos has a market capitalization of more than $5 billion.