Swiss banking software company Temenos is looking to drive sales growth in the US market with a ‘highly strategic’ acquisition.
Temenos, a company specialising in enterprise software for banks and financial services, announced on 28 August that it will acquire US digital banking SaaS company Kony for $559m and an earn-out of $21m.
In a blogpost, the Swiss company said that Kony’s CEO and chair, Thomas E Hogan, will be appointed as the president of Temenos North America and will be added to the Temenos executive committee. His experience in the US will be used to drive sales growth in the region.
A spokesperson for Temenos described Hogan as “a highly regarded US leader with extensive experience in executive positions in the software and technology sector”.
“He has served as the chairman and chief executive officer of Kony since 2014, leading the company’s fast expansion and growth. Prior to Kony, he held leadership roles in Hewlett Packard, IBM and Siebel, and was the chief executive officer of publicly held Vignette from 2001 to 2006.”
Both the acquisition and Hogan’s appointment are expected to be finalised before the end of the year.
‘Highly strategic’ deal
Kony is a cloud-based provider of mobility, omnichannel and IoT systems and services, which was founded in 2007 and is headquartered in Austin, Texas.
In its last funding round, which took place in 2014, the company raised $50m. Investors included SoftBank Capital, Hamilton Lane, Insight Partners, Georgian Partners, Delta-v Capital and Telstra Ventures.
The company has offices in the US, the UK, Germany, the Netherlands, Brazil, Mexico, India, Singapore and Australia, with more than 1,600 employees. It also has partnerships with SoftBank, Accenture, AT&T and TrueTech, among others.
Speaking about the deal, Hogan said: “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 strength, scale and commitment of Temenos will also help protect and extend our market-leading innovation.”
Meanwhile, Max Chuard, CEO of Temenos, said the “highly strategic” deal will allow the company to grow operations in the US.
“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,” he added.
“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.”