Temenos, the software specialist for banking and finance, is in advanced talks to buy Fidessa for at least £1.3bn, approximately US$1.82 billion. The all-cash offer prices the UK-based trading and technology vendor at £35.67 per share. Fidessa was up today in the stock market, with its price up by 22.47%. The deal should include the final and special dividends announced on Monday.
Fidessa’s market cap has gone over £1.1 billion since Monday after announcing its full-year results indicating strong growth, contrary to the last few years that have been crimped by regulatory delays and clampdowns on banks using their balance sheets to underpin their trading. Fidessa expects its margins to improve in 2019, once the company eases its efforts on MiFID II and on the derivatives market.
Fidessa’s global range has proven its worth. Last year, Tokyo-based independent securities company Marusan Securities Co. went live with Fidessa for its wholesale agency trading business. Norway-based ABG Sundal Collier (ABGSC) adopted the company’s workflow program to support its brokerage services across both equities and derivatives operations. Hong Kong-based has implemented its proprietary trading platform for its international equities business.
Buying Fidessa is Temenos, a Geneva-based firm that provides state-of-the-art and cost-effective banking software systems for banks and Financial Institutions everywhere.
Temenos has recently announced the launch of Software Group onto MarketPlace, its platform for facilitating the exchange of value between fintech providers and financial institutions.
Software Group, founded in 2009 in Bulgaria, provides technology solutions such as agency, allowing merchants or retail outlets to become bank representatives, digital field application, which allows field operatives to authenticate, onboard and service customers remotely, and a mobile wallet.
Ben Robinson, Chief Strategy Officer at Temenos, said: “Working together with Software Group, Temenos has helped to bring financial inclusion to millions of people across the globe. By becoming a MarketPlace provider, Software Group will gain greater visibility across the solutions it offers at the same time as making it much easier for Temenos customers to procure these solutions. As such, we expect Software Group to increase its footprint across the Temenos customer base and, by extension, help bring millions more people into the formal banking sector.”
Kalin Radev, CEO of Software Group, commented: “It is very exciting to be taking our relationship with Temenos to the next level. We see the MarketPlace as a fantastic route to market for the many products that can bring value to Temenos customers. As well as our direct channel solutions, we have an infrastructure platform that is truly cutting edge and can address the integration needs of financial institutions of all sizes. We look forward to playing an active role in the MarketPlace community and helping Temenos to deliver unparalleled customer success.”