Temenos makes biggest acquisition to date with Viveo (F)

Temenos makes biggest acquisition to date – gains clear leadership […]

December 29, 2009

Temenos makes biggest acquisition to date – gains clear leadership position in France, cements overall leadership in core banking

Temenos, the provider of integrated core banking systems, has signed a definitive agreement to acquire Viveo Group, the French market leader in core banking systems. The price of the acquisition is USD81m, which equates to approximately 3.8x 2010 expected maintenance revenues. The deal is being financed entirely by existing debt facilities and is expected to be strongly accretive to earnings from 2010. The deal is not subject to any further approval.

Established in 1983, Viveo Group serves over 750 financial institutions in more than 35 countries, with more than 400 customers in France, and has around 410 employees. Of Viveo’s total client base, around 350 customers use its core banking software and it counts banks like BNP Paribas, Caisse D’épargne, Société Générale, Crédit Agricole, Banques Populaires and La Compagnie Financière Edmond de Rothschild among its customers. Its employees are based chiefly in France, Romania, Belgium and Geneva.

In addition to growing its sales channel and client base, the acquisition also gives Temenos access to rich, complementary intellectual property and domain expertise. As well as core banking software, Viveo Group also has standalone solutions for payments, compliance, securities and anti-money laundering, which will be used by Temenos to strengthen or supplement its existing solutions. In particular, Viveo’s anti-money laundering and payments products are highly prized and robust solutions used globally by Tier 1 banks.

Andreas Andreades, Temenos CEO, comments: “We are delighted to announce the acquisition of Viveo Group. Viveo brings a large, very high quality customer base, deep domain expertise in sales and development and market leading complementary products. We believe the fit between the two organisations is very strong and highly synergistic.

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, Viveo Group CEO, adds, “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.
In its last reported year, to 31 December 2008, Viveo generated revenues of approximately USD65m, with high single-digit margins.

Management intends to give detailed guidance about the expected impact of the acquisition on the group’s revenues and earnings for 2010 at the time of its full year results announcement, provisionally scheduled for 16 February 2010 after the market close.

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