19 July 2018
Visit www.gemalto.com

Temenos buys US software provider Akcelerant

10 February 2015  |  6701 views  |  2 Buy Road sign

On the day it reported a fall in fourth quarter revenues, Swiss core banking vendor Temenos has acquired US financial software provider Akcelerant for $50 million in cash.

The acquisition will also include another $5 million subject to an earn-out over the next three years. The impact of the acquisition is expected to be non-IFRS EPS neutral in 2015 and two per cent accretive from 2016 onwards.

Founded in 2000, Philadelphia-based Akcelerant provides a range of software to some 600 financial services institutions in North America, predominantly credit unions. The firm expects to generate revenues of around $15 million and break even this year, reaching group margins by the end of 2017.

Temenos has been setting its sights on the North American market recently, buying Trinovus, a software-as-a-service technology provider, in 2013 and creating a USA division, which Akcelerant founder Jay Mossman and his executive team will join.

David Arnott, CEO, Temenos, says: "Putting the Akcelerant products together with Temenos’, including a new US model bank for T24, will give us an enhanced value proposition for the US financial services market, which we believe needs real-time, flexible and omni-channel solutions to be able to succeed against tougher competition and more demanding customer expectations."

Meanwhile, Temenos posted Q4 revenues of $133.1 million, down five per cent on a like for like basis on the same period in 2013. While maintenance revenues were up, software licensing income dropped eight per cent, to $50.4 million, on a like for like basis. However, non-IFRS Ebit was up 13% to $60.3 million and earnings per share rose 17% to 74 cents.

Says Arnott: "Despite disappointing software licensing revenue in Q4 which impacted full year growth, we have made good progress on our strategic initiatives with the signing of Julius Baer at the start of this year validating our belief in our products and on our ability to execute on key deals. We have taken the necessary actions to address the issues faced at the end of last year and expect strong growth in 2015."

Comments: (2)

David Gibbard
David Gibbard - OmniChannel & Digital Banking - Suwanee 10 February, 2015, 19:08

A good move for both companies. Temenos is coming to America. Get ready Fiserv, Jack Henry and D&H. 

Be the first to give this comment the thumbs up 0 thumb ups!
A Finextra member
A Finextra member 12 February, 2015, 01:59

Thanks for the kind words, David.   All of us at Akcelerant are looking forward to the great opportunities as part of the Temenos family.

Be the first to give this comment the thumbs up 0 thumb ups!
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 shares slip on poor sales

Temenos shares slip on poor sales

13 January 2015  |  5300 views  |  0 comments | 2 tweets | 3 linkedin
International vendors on alert as US banks rethink core platform strategies

International vendors on alert as US banks rethink core platform strategies

18 December 2014  |  7539 views  |  0 comments | 16 tweets | 10 linkedin
Temenos targets US SaaS banking market through TriNovus acquisition

Temenos targets US SaaS banking market through TriNovus acquisition

22 March 2013  |  6009 views  |  0 comments | 7 tweets
Ex-COO Cullinane leaves Temenos

Ex-COO Cullinane leaves Temenos

27 February 2013  |  7698 views  |  0 comments | 2 tweets | 2 linkedin
Temenos CEO Dubois out as license revenues plummet

Temenos CEO Dubois out as license revenues plummet

12 July 2012  |  9997 views  |  0 comments
Temenos walks away from Misys merger

Temenos walks away from Misys merger

12 March 2012  |  9611 views  |  0 comments
Temenos profit warning weakens Misys

Temenos profit warning weakens Misys

15 July 2011  |  12125 views  |  0 comments
Viveo workers win Temenos case

Viveo workers win Temenos case

16 May 2011  |  15528 views  |  0 comments
Temenos gets new CEO; posts FY results

Temenos gets new CEO; posts FY results

17 February 2011  |  12344 views  |  0 comments

Related company news

 

Related company information

Temenos – The Banking Software Company

Related blogs

Create a blog about this story (membership required)
Visit http://go.jumio.com/finextraAdVisit info.nice.comVisit https://secure.vasco.com

Top topics

Most viewed Most shared
Calmejane quits Lloyds Bank to join SocGenCalmejane quits Lloyds Bank to join SocGen
11382 views comments | 5 tweets | 7 linkedin
Metro Bank opens developer portalMetro Bank opens developer portal
9982 views comments | 5 tweets | 14 linkedin
Anything Visa can do...Mastercard takes time outAnything Visa can do...Mastercard takes ti...
9612 views comments | 6 tweets | 15 linkedin
Mastercard enlists Worldpay to push Vocalink's Pay by Bank appMastercard enlists Worldpay to push Vocali...
9131 views 19 comments | 14 tweets | 30 linkedin
Hong Kong plans September go-live for blockchain-based trade financeHong Kong plans September go-live for bloc...
8651 views comments | 9 tweets | 17 linkedin

Featured job

Find your next job