20 September 2012

Temenos Group AG Acquires UK-headquartered edge IPK

Geneva, Switzerland – 20 September 2012 – Temenos Group AG, the market leading provider of banking software, today announces that it has signed a definitive agreement to purchase edge IPK, a provider of user experience platform (UXP) software to the financial services industry. 

edge IPK, headquartered in the UK and with operations in the US and India, provides financial institutions with the ability to launch and easily maintain a cutting-edge and consistent user experience across multiple channels products and geographies. 

The company has been recognised as a ‘cool’ vendor by Gartner for its highly innovative UXP product edgeConnect, stating ‘some customers report delivering applications up to five times as quickly, with a fraction of the resources.’ 

edgeConnect is used by a number of financial services companies, including Deutsche Bank, ABN Amro, Zurich and Allianz. In addition, it is soon to be deployed at Metro Bank as part of the internet banking portal for Temenos T24, the company’s flagship core banking solution. 

The acquisition will enable Temenos to compete much more effectively in the financial services front office application market, which is estimated to be approximately the same size as the core banking market. With the acquisition, Temenos will be able to offer a common UI across all of its products, a much enhanced user experience for direct customer channels as well as additional functionality, such as online customer acquisition. Temenos envisages strong demand from new and existing customers, and will continue to sell edgeConnect on a standalone basis as UXPs become the de facto standard in Financial Services, ‘subsuming the current markets for portal products and mashup tools. All existing UIs that Temenos customers are using will continue to be supported. 

The consideration paid for the acquisition, which is expected to be earnings neutral in 2012, has not been disclosed. In 2011, edge IPK generated revenues of USD5.7m and EBITDA of USD0.3m. The transaction is expected to close at the beginning of October. 

David Arnott, CEO Temenos, comments, “We welcome edge IPK, its employees and customers to Temenos. This is a very exciting and highly strategic acquisition for us. Customers are increasingly consuming financial services via the Internet – using PCs, tablets and smartphones – and, as such, the range of services provided by financial institutions and the quality of the user experience is becoming a key battleground and a major determinant of customer satisfaction, as well as a vital tool for cross-selling and customer retention. With this acquisition, we are giving our customers the capability to out-innovate their competitors, launch new products more quickly and deliver a far superior customer experience.” 

Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is the market leading provider of banking software systems to retail, corporate, universal, private, Islamic, microfinance and community banks, wealth managers, and financial institutions. Headquartered in Geneva with more than 55 offices worldwide, Temenos software is proven in over 1,500 customer deployments in more than 125 countries across the world. 

Source: Temenos Group AG