Temenos, a provider of integrated core banking systems, has signed a definitive agreement to acquire France-based Viveo Group, a provider of core banking systems for $81m. The deal is being financed entirely by existing debt facilities and is expected to be accretive to earnings from 2010.
In addition to expanding its sales channel and client base, the acquisition also gives Temenos access to complementary intellectual property and domain expertise. The core banking software, standalone solutions for payments, compliance, securities and anti-money laundering of the Viveo Group will be used by Temenos to strengthen or supplement its existing solutions.
Andreas Andreades, CEO of Temenos, said: “The acquisition enhances further our critical mass and establishes a clear leader in core banking, especially in France. In the last 12 months, Temenos has experienced very strong growth in France and joining forces with Viveo will create a powerhouse in this market. More generally, this acquisition adds significantly to the Temenos installed base, giving us the scale to invest more significantly and faster in sales and development to deliver superior value for our customers and shareholders.”
Raimondo Ascer, CEO of Viveo Group, said: “This is a very good deal for Viveo Group and all of its stakeholders. As part of a bigger group, we will have access to greater resources and will be able to serve our customers better. Further, our employees will have more opportunities to develop and progress. The combination of Viveo and Temenos creates a clear market leader in core banking and I strongly believe this will be a highly successful and value-creating union.”
