Temenos makes biggest acquisition to date
24 December 2009
Temenos gains clear leadership position in France, cements overall leadership in core banking
GENEVA, Switzerland, 24 December 2009 – Temenos (SIX: TEMN), the market-leading provider of integrated core banking systems, today announces that it has signed a definitive agreement to acquire Viveo Group, the French market leader in core banking systems. The price of the acquisition is USD81m, which equates to approximately 3.8x 2010 expected maintenance revenues. The deal is being financed entirely by existing debt facilities and is expected to be strongly accretive to earnings from 2010. The deal is not subject to any further approval.
Established in 1983, Viveo Group serves over 750 financial institutions in more than 35 countries, with more than 400 customers in France, and has around 410 employees. Of Viveo’s total client base, around 350 customers use its core banking software and it counts banks like BNP Paribas, Caisse D’épargne, Société Générale, Crédit Agricole, Banques Populaires and La Compagnie Financière Edmond de Rothschild among its customers. Its employees are based chiefly in France, Romania, Belgium and Geneva.
In addition to growing its sales channel and client base, the acquisition also gives Temenos access to rich, complementary intellectual property and domain expertise. As well as core banking software, Viveo Group also has standalone solutions for payments, compliance, securities and anti-money laundering, which will be used by Temenos to strengthen or supplement its existing solutions. In particular, Viveo’s anti-money laundering and payments products are highly prized and robust solutions used globally by Tier 1 banks.
Andreas Andreades, Temenos CEO, comments: “We are delighted to announce the acquisition of Viveo Group. Viveo brings a large, very high quality customer base, deep domain expertise in sales and development and market leading complementary products. We believe the fit between the two organisations is very strong and highly synergistic.
The acquisition enhances further our critical mass and establishes a clear leader in core banking, especially in France. In the last 12 months, Temenos has experienced very strong growth in France and joining forces with Viveo will create a powerhouse in this market. More generally, this acquisition adds significantly to the Temenos installed base, giving us the scale to invest more significantly and faster in sales and development to deliver superior value for our customers and shareholders.”
Raimondo Ascer, Viveo Group CEO, adds, “This is a very good deal for Viveo Group and all of its stakeholders. As part of a bigger group, we will have access to greater resources and will be able to serve our customers better. Further, our employees will have more opportunities to develop and progress. The combination of Viveo and Temenos creates a clear market leader in core banking and I strongly believe this will be a highly successful and value-creating union.
In its last reported year, to 31 December 2008, Viveo generated revenues of approximately USD65m, with high single-digit margins.
Management intends to give detailed guidance about the expected impact of the acquisition on the group’s revenues and earnings for 2010 at the time of its full year results announcement, provisionally scheduled for 16 February 2010 after the market close.
About Viveo Group
A strategic partner to banks and financial establishments, Viveo offers a comprehensive, modulable software-package offering and services to handle all their functional, technological and/or regulatory issues. It is currently positioned as the only major European player, combining the activities of consulting and publishing in order to cover all facets of an end-to-end banking solution. With over 25 years’ experience in the banking world, Viveo currently has over 750 clients in more than 35 countries, some 410 employees and turnover of around EUR46 million. www.viveo.com
About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 51 offices worldwide, Temenos serves over 700 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is top of the IBS Sales League Table 2008, winner every year since its launch of the Best Core Banking Product in Banking Technology magazine’s Readers’ Choice Awards and ranks 26th in the American Banker top 100 FinTech companies. Temenos customers are proven to be more profitable than their peers: data from The Banker – top 1000 banks shows that Temenos’ customers enjoy a 62% higher return on assets, a 54% higher return on capital and a cost/income ratio that is 7.2 points lower than non-Temenos customers. www.temenos.com/profit
Investor contacts:
Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 79 310 96 22
mchuard@temenos.com
Ben Robinson
Director, Strategic Planning
M: +41 795 207208
brobinson@temenos.com
Press contacts:
James White
Hudson Sandler
Tel: +44 (0) 20 7710 8910
james.white@hudsonsandler.com