Swiss core banking systems vendor Temenos is to acquire Lydian Associates, a provider of business intelligence software with a large installed base of customers using the rival Misys Equation and Bankmaster product sets.
Ten-year old Lydian sells a range of management information products under the Webform brand. The products give users the ability to produce desktop reports, graphics and dashboards - defined according to any specified parameters or Key Performance Indicators (KPIs) - to help assess performance, profitability and liquidity.
Temenos says it will use the Webform product set to provide a pre-packaged data interrogation capability under the T24 Data Warehouse.
More importantly, the acquisition gives it access to a large pool of 45 legacy Misys customers. The Webform product suite was developed by former Kapiti man Graham Goble and originally designed for Misys Equation customers.
On top of its core BI products, Lydian Associates also developed a number of standard software applications that provide Misys clients with solutions for the automated production of central bank reporting and a profit-distribution application central to compliance with Islamic Banking regulations.
The total acquisition price, which is not disclosed, consists of an up-front consideration and further payments contingent on Lydian achieving performance criteria. In its last financial year (to end of May 2008), Lydian made an operating profit of $560,000 on revenue of $1.8m.
Commenting on the acquisition, Graham Goble says, "By becoming part of Temenos we will gain access to significantly more development resources and also a much wider client base. We therefore believe that we can create more value for customers as part of Temenos than as a standalone business."
Andreas Andreades, Temenos CEO, says the vendor will be able to provide clients with an integrated business intelligence product suite by January 2009.