Software developer Temenos has agreed to buy a U.S.-based rival in a strategic move. The solutions developed by the company it bought help speeding up the process of opening a bank account.
Temenos will pay $245 million for Avoka, which is based in the U.S., according to a statement released by Temenos on Wednesday. The 270 employees of Avoka work from the three offices in Denver, Sydney and London. The firm was founded in Australia in 2002.
The Geneva-based software company will integrate the Avoka platform into its own digital front office. The technology developed by Avoka helps reduce the time it takes to open a bank account at large firms by 70 percent.
U.S. Expansion Bid
Avoka increased sales by 30 percent this year and intends to grow at a similar pace in 2019. That would take its turnover to about $50 million by the end of next year.
«This is a highly strategic acquisition for Temenos as it not only reinforces our leadership position within the digital front office space but it also strengthens our capabilities in the U.S. market where we are seeing significant traction as banks accelerate their digital transformation plans,» said Max Chuard, the CFO of Temenos.
