Switzerland’s Temenos has agreed to purchase US digital banking SaaS company Kony Inc for $559m and an earn-out of $21m.
The Swiss banking software group hopes the acquisition will increase Temenos’ US growth as well as offer digital expertise.
It will use Kony’s Digital Banking Experience (Kony DBX) to strengthen Temenos Infinity, the company’s digital front office product.
Max Chuard, CEO at Temenos, said: “The acquisition of Kony is highly strategic. It 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.”
Kony DBX includes a suite of mobile banking apps that support conversational interfaces, artificial intelligence, augmented reality, and wearable technologies
The transaction will be completed by early Q4 2019 and is subject to customary regulatory approvals.
Temenos management switch-up
There has been a switch-up to the Temenos Management team following the recent partnership. Thomas E. Hogan, Chairman and CEO of Kony, will become President of Temenos North America and join Temenos’ executive committee.
He 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 will bring the industry’s most robust suite of applications for delivering service, value, and efficiencies from the digital edge to the modern core.
“We are proud and excited to join forces with Max Chuard and the equally talented men and women at Temenos. I am personally very proud to become the President of Temenos North America.”
Emily Steele was appointed as Executive Vice President, Field Operations and Delivery for North America.
Additionally, Jeffrey Kendall will be Executive Vice President, North America Sales and Distribution.
Speaking on this, Chuard said he was confident that the new appointments would successfully deliver a strategic North American plan.