Swiss core banking vendor Temenos has agreed to acquire digital customer acquisition outfit Avoka for $245 million in cash and debt.
Founded in the Sydney beachside suburb of Manly in 2002 and with more than 85 customers including numerous Australian and global banks, Avoka now has more than 270 employees, with offices in Sydney, Denver, and London.
Avoka’s total revenue grew circa 30% in 2018 and is expected to grow at the same rate in 2019 to reach approximately $50m, with 50% recurring revenue.
Avoka's software-as-a-service suite will be integrated with the Temenos Digital Front Office product, which has over 300 banking clients, delivering a rich digital onboarding and customer acquisition front-end.
Temenos chief Max Chuard says Avoka clients can increase new account opening by 60% and shortened customer time to onboard by nearly 70%.
“This is a highly strategic acquisition for Temenos as it not only reinforces our leadership position within the Digital Front Office space but it also strengthens our capabilities in the US market where we are seeing significant traction as banks accelerate their digital transformation plans," he says. "Avoka is a market leader and is experiencing strong growth as banks invest in creating outstanding customer acquisition and onboarding experiences.”
The transaction is due to be completed by early Q1 2019 and is subject to regulatory approvals.
Editorial | what does this mean?