Temenos AG (SIX: TEMN), the Switzerland based banking software provider, announced on Wednesday it has acquired U.S.-based digital banking SaaS company, Kony. Temenos reported that the acquisition significantly enhances Temenos’ scale and capabilities in the U.S., adds significant digital expertise, and accelerates digital front office product Temenos Infinity. The company has agreed to purchase Kony for an enterprise value of $559 million and an earn-out of $21 million, to be funded through cash and debt.
It was revealed that with the acquisition Kony and the recently acquired Avoka, Temenos will further strengthen the Temenos Infinity product, which will be covering all banking verticals offering customer acquisition and onboarding, omnichannel banking, customer retention and marketing, and modules supporting payments, wealth advisor, financial crime, risk and compliance, and analytics.
Speaking about the expansion, Max Chuard, CEO of Temenos, stated:
“The acquisition of Kony is highly strategic and will allow us to grow both our US and our digital front office business faster, while being highly accretive and synergistic to the rest of our business. We are acquiring a digital front office product that has already been successful in the US market and is connected to most third party cores. We are also adding a significant amount of exciting functionality and ease of generating customer journeys and experiences that will accelerate Temenos Infinity, providing banks in both North America and internationally with an unrivalled customer experience and omnichannel banking product.”
Thomas E. Hogan, Chairman and CEO of Kony, Inc., also commented:
“I could not be more excited about joining Temenos and the combined value we will bring to financial institutions around the world. The power of the Temenos portfolio, combined with Kony’s digital banking applications and multi-experience development platform, will bring the industry’s most robust suite of applications for delivering service, value, and efficiencies from the digital edge to the modern core.”
Temenos added that the transaction is due to be completed by early fouth quarter 2019 and is subject to customary regulatory approvals.