17 January 2018
visit www.ebaday.com

Temenos agrees Odyssey acquisition

28 September 2010  |  12383 views  |  0 handshake

Temenos has inked an $81 million deal to buy Luxembourg-based Odyssey Financial Technologies, which provides application software to the private banking and wealth management (PWM) market.

The Swiss core banking vendor will pay $81 million, through a combination of existing cash and facilities but is also taking on Odyssey's existing debt obligations of $20.3 million.

The deal has already received sufficient irrevocable shareholder undertakings to be approved and is expected to close around the middle of October. It is earnings neutral for 2010, but is expected to be around six per cent accretive to earnings in 2011.

The acquisition sees Temenos add the Triple'A Plus and WealthManager products - installed at about 110 financial institutions - to its T24 Private Wealth offering. This will make it the clear market leader, with pro-forma annual revenues of around $130 million.

The vendor claims this market is likely to enjoy strong growth of around 25% CAGR between 2010 and 2012 as banks switch from in-house spending to third party licences in order to improve business responsiveness and organisational efficiency.

However, it also says the structural drivers underpinning growth in the PWM market are even more compelling with expanding high-margin private banking activities highly desirable for firms bidding to rebuild their balance sheets and achieve high returns in an era of lower leverage.

Meanwhile, customers and regulators are both demanding more transparency and simpler products, forcing banks to revisit their business models while the traditional offshore model is coming under pressure from collective government action to tighten tax avoidance.

Andreas Andreades, CEO, Temenos, says: "The combination of Temenos' Private Banking business and Odyssey creates a powerhouse in PWM application software - a business with the scale to out-sell and out-innovate competition and gain significant market share. The combination brings together the best-selling core banking platform with the best-selling front office applications, offering both sets of customers as well as new prospects an integrated yet best-of-breed back-to-front offering, which we believe will be a highly compelling proposition in the market.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Temenos buys m-banking firm FE-Mobile

Temenos buys m-banking firm FE-Mobile

11 May 2010  |  8921 views  |  0 comments
Temenos posts full year operating profit rise

Temenos posts full year operating profit rise

18 February 2010  |  7449 views  |  0 comments
Wealth management IT spending to pick up in 2010 - Celent

Wealth management IT spending to pick up in 2010 - Celent

07 January 2010  |  13056 views  |  0 comments
Temenos spends $81m on French core banking outfit Viveo

Temenos spends $81m on French core banking outfit Viveo

06 January 2010  |  15784 views  |  0 comments
Temenos and Microsoft form core banking alliance

Temenos and Microsoft form core banking alliance

10 December 2009  |  9553 views  |  0 comments
Odyssey creates Glasgow jobs with new software development centre

Odyssey creates Glasgow jobs with new software development centre

20 November 2009  |  4604 views  |  0 comments
Temenos cost-cutting takes bite out of revenue dip

Temenos cost-cutting takes bite out of revenue dip

03 August 2009  |  6284 views  |  0 comments
Odyssey acquires Canadian wealth management outfit Xeye

Odyssey acquires Canadian wealth management outfit Xeye

23 January 2008  |  5459 views  |  0 comments
Odyssey acquires Reuters portfolio management product

Odyssey acquires Reuters portfolio management product

30 November 2005  |  8834 views  |  0 comments

Related company news

 

Related company information

Temenos – The Banking Software Company
visit www.ebaday.comvisit www.fivedegrees.nlvisit www.vasco.com

Top topics

Most viewed Most shared
Buffett rubbishes cryptocurrencies; South Korea preps exchange crackdownBuffett rubbishes cryptocurrencies; South...
11549 views comments | 15 tweets | 17 linkedin
BNP Paribas Asset Management completes fund transaction blockchain testBNP Paribas Asset Management completes fun...
10160 views comments | 14 tweets | 33 linkedin
Europe begins Open Banking era in subdued styleEurope begins Open Banking era in subdued...
9596 views comments | 32 tweets | 34 linkedin
Crypto mining threatened by power capacity concernsCrypto mining threatened by power capacity...
9462 views comments | 17 tweets | 18 linkedin
Exchanges call for global fintech standardsExchanges call for global fintech standard...
9192 views comments | 17 tweets | 13 linkedin

Featured job

Competitive base + commission
London, UK

Find your next job