In the world of financial software, Temenos is as sophisticated and strategic as they come. While not frequently mentioned in the business press, the company has a commanding share of the banking software market and generates close to $850 million in annual revenues. And given its impressive year-over-year growth rate of approximately 15%, the company is valued at over $11.2 billion in the public markets. Temenos’ solutions cover a wide range of functions from data and analytics to risk and compliance to payments as well as customer service, wealth management and fund administration - the list goes on.
Most recently, the Swiss-based company announced it would expand dramatically into North America through its acquisition of Kony, the 1,500 person digital banking SaaS leader based in Austin, TX . The deal was valued at $559 million to be funded through debt and cash. Temenos picks up a key executive in Tom Hogan, the current CEO of Kony who will assume the role of President of Temenos North America post acquisition.
Both sides expressed their enthusiasm for the combination.
Temenos’ CEO Max Chuard commented, “The acquisition of Kony, the US #1 digital banking SaaS company 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.”
Tom Hogan discussed his thoughts, “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. The strength, scale, and commitment of Temenos will also help protect and extend our market-leading innovation. On behalf of the 1,500 talented Kony employees, we are proud and excited to join forces with Max Chuard and the equally talented men and women at Temenos and I am personally very proud to become the President of Temenos North America.”
Max and Tom will work jointly to ensure a smooth integration process. With mutual respect and admiration in tow, both are anxious to get the transition underway. Max states, “I am also extremely excited to welcome Tom Hogan to join our Executive Committee as the President of Temenos North America. Tom is an inspirational and seasoned leader with a rich experience in executive positions in the technology sector and will be instrumental in driving our success in North America. I am also delighted to welcome to Temenos an impressive team of over 1500 people from Kony with immense digital and cloud expertise. These are truly exciting times as we continue to offer banks the most technologically advanced digital banking platform giving them the freedom to innovate and the speed to deliver superior digital customer experiences.”