Temenos Viveo acquisition update

Geneva, 9 September 2010 - Temenos, the world’s leading supplier of banking software, first implemented its plan to restructure the Viveo Group’s business in January 2010, following its acquisition of the supplier in December 2009. The goal was to re-establish its economic base while minimising social impacts. It soon became clear that Viveo’s continued viability could only be assured by restructuring the business and increasing the level of offshore development (a strategy which in fact was initiated by Viveo’s former management team in March 2009 when  development was moved to Romania), which would result in 63 job losses. Throughout the six month period of negotiation, Temenos submitted several proposals to those employees affected. However the unions and works council rejected them all.

Alexa Guenoun, CEO of Viveo Group and Viveo France, says: “We appreciate that the announcement of 63 job losses at Viveo France was a surprise to employees, who were not aware of their employer’s challenging financial situation. We are committed to keeping the workforce fully informed and minimising job cuts in the Viveo Group as a whole” With this in mind, Temenos has prioritised the sale, at no profit, of associated companies Viveo Switzerland (Geneva) and VBF Consulting (Paris), neither of which were active in the Temenos core business, to safeguard all 74 jobs at those two companies. In parallel a voluntary redundancy plan has been put in place in consultation with Viveo France’s works council.

Fifty-seven employees currently wish to take advantage of the voluntary redundancy plan, which if materialises will enable Viveo France to be restructured without the need for any redundancies.

Temenos wishes to develop a constructive dialogue with employees so it is able to give due consideration to their expectations. With this in mind, Temenos has studied the report written by APTEIS, as commissioned by the hygiene, safety and working conditions committee (CHSCT), on how the restructuring project might impact the working conditions and health of Viveo employees. Alexa Guenoun says: “The report written by APTEIS, which fortunately does not reflect the reality of our company, does however reveal many questions the employees have about the change of culture at their company. It is important to remember that, while we have ambitious goals in France, employee work-life balance and the quality of working conditions is of paramount importance to Temenos.”

Temenos is also committed to implementing and sharing its strategy with employees and making the investment required in order to achieve its financial objectives in France. “To our credit,” Alexa Guenoun concludes, “we have already signed three new contracts that demonstrate the relevance and logic of bringing together the product and market expertise of Temenos and Viveo. The synergy already generated through the merger will enable us jointly to capture an even greater share of the French-speaking market.”

On 16 September 2010 and at the instigation of Viveo’s executive committee, the Paris Court of the First Instance will rule on the validity of Viveo France’s Job Protection Plan. It will not assess the financial justification for the plan, as this is not within its jurisdiction. If the Court approves the Job Protection Plan, the voluntary redundancies will be implemented within 15 days of the closure of the consultation procedure recommended by the works council. If the plan is not approved, the collective redundancy plan (including the voluntary redundancies) will be withdrawn and a new social agenda drawn up in accordance with French labour laws. Throughout this period, Temenos’ French management team is ready to meet and talk with all employees.

Alexa Guenoun, CEO of Viveo Group and Viveo France, is happy to provide additional information to journalists by telephone.

About Temenos

Founded in 1993 and listed on the Swiss Stock Exchange (SIX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 57 offices worldwide, Temenos serves over 1000 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations. Temenos is top of the IBS Sales League Table 2009; winner every year since its launch of the Best Core Banking Product in Banking Technology magazine’s Readers’ Choice Awards and ranks 26th in the American Banker top 100 FinTech companies Temenos customers are proven to be more profitable than their peers: data from The Banker – top 1000 banks shows that Temenos’ customers enjoy a 54% higher return on assets, a 62% higher return on capital and a cost/income ratio that is 7.2 points lower than non-Temenos customers. For more information please visit www.temenos.com

Temenos contacts:

Petra Shuttlewood
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: pshuttlewood@temenos.com

Alexa Guenoun
Regional Manager, CEU - Temenos
Tél : +33 (0)1 44 77 43 43
E-mail : aguenoun@temenos.com