Acquisition to give Temenos additional scale in North America and expanded product portfolio
GENEVA, Switzerland – Temenos (SIX: TEMN), the market-leading provider of mission-critical solutions to the financial services industry, today announces that it has acquired Akcelerant, a leading US-based financial software provider.
Founded in 2000, Akcelerant offers multiple software solutions to over 600 financial services institutions in North America, predominantly in the credit union space in the US. Akcelerant’s products allow financial institutions to grow new loans and accounts, control risk, and operate more efficiently and profitably, all while providing superior in-branch or remote account holder consumer experiences. Akcelerant technology improves relationships between a financial institution and an account holder during every phase of the account life cycle. This includes origination, account servicing, risk management and collections, where it is the market leader for US credit unions. Akcelerant has 130 employees and is based in Philadelphia.
The acquisition is key to Temenos’ North America growth strategy, especially within the US. It follows the 2013 acquisition of Trinovus, a software-as-a-service technology provider, and creation of the Temenos USA division. The purchase of Akcelerant will also give Temenos additional scale and presence in the region and enable it to offer a broader portfolio of products to new and existing customers.
The acquisition will also help Temenos to capitalize on its recent momentum. In the last twelve months, Temenos has signed eight customers for T24, its award-winning real-time core banking platform, the first of whom – Independence Bancshares – is now live with the solution; eight customers for Insight, its predictive analytics engine; and, it now boasts over 1,300 customers for its market-leading compliance solutions TriComply, SocialComply, and BankerVMS.
Having seen strong historic levels of growth, Akcelerant is expected to generate revenues of c.USD 15m 2015, 75% of which will be recurring revenues. Akcelerant is expected to be breakeven in 2015, reaching group margins by the end of 2017. The consideration for the acquisition is USD 50m in cash with a further USD 5m subject to an earn-out over the next 3 years. The impact of the acquisition is expected to be non-IFRS EPS neutral in 2015 and 2% accretive from 2016 onwards.
Following the acquisition, Jay Mossman, the Founder and CEO of Akcelerant, will continue as its CEO and join the Temenos USA management team. The executive team at Akcelerant will remain intact, and continue to lead the business.
David Arnott, CEO at Temenos, said: “We are delighted to have completed the acquisition of Akcelerant. This represents a highly strategic investment for us that will further increase our market presence in North America and build on the momentum that we have been generating over recent years. 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.”
Jay Mossman, CEO at Akcelerant, said: “The combination of Temenos’ North American business with Akcelerant represents an excellent fit for our customers and employees. While Temenos is a global market leader in banking software, there remains great potential to improve our market share in the Americas. Akcelerant will help to achieve this potential, adding market-leading product capabilities spanning loan and account origination, service, collections, recovery and profitability.”