Source: Temenos
TEMENOS Group (SWX:TEMN), a provider of integrated core banking systems, and Finantix, a provider of wealth management and branch automation software, today announced the continuation of their joint partnership following the termination of TEMENOS' 20% equity stake in Finantix.
The decision was a joint agreement and acknowledgement that the companies' core strategies are progressing in different markets. However, both parties will continue to support each other on mutually beneficial commercial ventures in the retail banking and wealth management areas.
Ralf Emmerich, CEO, Finantix, says: "The termination of TEMENOS' financial interests will not impact on our commitment to effectively serve our shared customers. Our future partnership will enable us to continue to offer TEMENOS T24™ integrated with our Finantix Components™ product suite under a more suitable arrangement."
Andreas Andreades, CEO, TEMENOS, says: "Through mutual agreement we decided to end our minority interest in Finantix as it was of limited benefit to both companies. By working under a pure partnership model, we will better serve the interests of our shareholders and our customers. Significant opportunities still exist for us to combine our core processing products with Finantix's wealth management suite."
TEMENOS invested US$2. 5 million in Finantix, in January 2002. TEMENOS was granted an option to acquire the remaining equity for a combination of equity and cash, which must have been exercised by the end of 2002. But, Andreades says: "Given the economic climate within the banking industry at that time, the exercise of the option would have been unacceptably dilutive to TEMENOS shareholders. Therefore, we decided not to proceed and accepted a buyback offer from the Finantix shareholders."