Temenos, a Swiss producer of banking software, exceeded expectations in 2016. It will now use its position of strength to make an acquisition.
Sales at Geneva-based Temenos rose 17 percent to $634 million last year, the company said in a statement last night.
Earnings-per-share increased by a fifth to $2.07. The company intends to raise its dividend payment to $0.55 from $0.45.
Takeover in Australia
Temenos, which produces core-banking systems, is in great shape, very much like arch-rival Avaloq, which based in Zurich.
Temenos in the autumn said it was in talks with potential takeover targets. Yesterday it announced an agreement to buy Rubik Financial, a software developer based in Sydney, Australia.
Financial-Services Sector
Temenos will acquire 100 percent of the issued capital of Rubik for a cash consideration of A$0.1667 per share, valuing Rubik’s equity at approximately A$68 million ($50 million) on a fully diluted basis.
Rubik has about 150 employees and generated sales of A$43.3 million in 12 months through June 2016. It produces software for the Australian financial-services sector.
Outlook
Temenos expects sales growth to slow slightly this year, predicting an increase of between 8 and 11 percent and sales of $667 million to $689 million.
