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Private equity firms eye up Temenos

Private equity firms eye up Temenos

Private equity firms EQT and Thoma Bravo are reportedly exploring potential bids for Swiss core banking outfit Temenos.

According to Bloomberg, the buyout firms are in the early stages of considering offers for Temenos, which has a market value of close to $8 billion.

Group revenue at Temenos rose 9% year on year to $231.6 million in the third quarter, on a constant currency basis. Earnings before interest, taxes, depreciation and amortization were up 6% to $108.3 million, results for the period show.

The firm has benefited from a move by big banks to transform their technology stacks in the face of challenges from startups and a shift in customer behaviour to online and mobile payments.

Temenos also recently announced that it has exceeded the 70-neobank customer milestone - more than any other provider - and is now developing a range of new tools specifically designed to cater for this fast-growing segment.

Thoma Bravo has past from in big tech acqusitions in the financial technology space. In December last year, the private equity group bought business payments technology house Bottomline for $2.6 billion in cash. This followed deals to acquire capital markets outfit Calypso and the acquisition of a majority stake in RegTech AxionSL.

There’s no certainty EQT or Thoma Bravo will decide to move ahead with a takeover offer for the company, and other suitors could emerge, according to Bloomberg's sources. Representatives for EQT, Temenos and Thoma Bravo declined to comment.

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