Temenos AG (SIX: TEMN), the Switzerland based banking software provider, announced on Wednesday it has completed the acquisition of U.S.-based digital banking SaaS company, Kony. The acquisition news was originally announced last month, with Temenos agreeing to purchase Kony for an enterprise value of $559 million and an earn-out of $21 million, to be funded through cash and debt.
“The acquisition of Kony is highly strategic and will allow us to grow both our US and our digital front office business faster, while being highly accretive and synergistic to the rest of our business. We are acquiring a digital front office product that has already been successful in the US market and is connected to most third party cores. We are also adding a significant amount of exciting functionality and ease of generating customer journeys and experiences that will accelerate Temenos Infinity, providing banks in both North America and internationally with an unrivalled customer experience and omnichannel banking product.”
Thomas E. Hogan, Chairman and CEO of Kony, Inc., added:
“I could not be more excited about joining Temenos and the combined value we will bring to financial institutions around the world. The power of the Temenos portfolio, combined with Kony’s digital banking applications and multi-experience development platform, will bring the industry’s most robust suite of applications for delivering service, value, and efficiencies from the digital edge to the modern core.”
The acquisition will notably accelerate Temenos’ US presence and strengthen Temenos Infinity, the breakthrough digital banking product. Hogan has been appointed President of Temenos North America and joins Temenos’ Executive Committee, with immediate effect.