Temenos makes strategic acquisition of TLC Risk Solutions
30 January 2006
GENEVA, Switzerland – 30 January, 2006 - TEMENOS Group (SWX: TEMN), a provider of integrated core banking systems, today announced that it has signed an agreement to acquire the assets of TLC Risk Solutions, a provider of Basel II-compliant credit and operational risk banking solutions. Under the terms of the agreement, signed on 11 January 2006 for an undisclosed sum, TEMENOS will acquire the company’s barracuda software product, a complete solution for the calculation of regulatory capital under Basel II. The deal provides TEMENOS with a competitive edge in the growing risk management market.
TEMENOS and TLC, a small private company, first formed an alliance in October 2004 in response to the industry’s need for a core banking solution with integrated risk management. The alliance enabled banks to integrate TLC’s Basel II product with TEMENOS’ market-leading core banking systems. barracuda provides a predefined, Basel II-specific, data taxonomy and acts as the data ‘concentrator’ for all the data from disparate source systems required to properly calculate Risk Weighted Assets (RWA) under Basel II. The first joint client of the alliance, Universal Bank in Cyprus, successfully implemented the combined solution in 2005.
With immediate effect, TEMENOS will rebrand barracuda as T-Risk and provide it as a stand-alone product that can be easily integrated within TEMENOS T24™ and TEMENOS COREBANKING, the company’s modular and flagship core banking systems. The design and development team from TLC have joined TEMENOS, working out of TEMENOS’ Fenchurch Street offices in London. These include two of TLC’s three founders, David Thomas and Nicholas Morgan.
David Thomas, co-founder and director, TLC Risk Solutions, says: “This is an extremely positive move for our clients. They can now benefit from TEMENOS’ extensive experience of the banking software industry, its superior product portfolio and its commitment to technical development. In addition, they’ll continue to meet their risk management requirements through the barracuda software with no disruption.”
Andreas Andreades, CEO, TEMENOS, says: “With the escalating complexities of trades and the continued challenge to meet compliance and regulatory requirements, risk management is of increasing importance to global financial institutions. Already we have seen our clients benefit from TLC’s products through our existing alliance. This transaction illustrates our strong commitment to invest in our product portfolio in order to meet our clients’ needs. It is a very complimentary acquisition for us, which will broaden our platform offering and strengthen our position in the risk area.”
TEMENOS continues to attract global tier 1 and regional banks as a result of its superior products, TEMENOS T24 and TEMENOS COREBANKING. In 2005, the company achieved US$ 91 million in Initial Licence Fees (ILF), an increase of 47% compared to 2004. New clients have included Compagnie Monégasque de Banque, RBTT Financial Group, Bank of East Asia and HSBC.
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About Temenos
Founded in 1993, Temenos Group AG is a provider of integrated modular core banking systems to over 590 financial institutions in 110 countries worldwide. Temenos software provides banks with a single, real-time view of the client across the enterprise, enabling banks to maximize returns while streamlining costs. Whether providing 24/7 functionality to the wholesale, retail and private or universal banking sectors, partnering with central banks on core system replacement, or working with the World Bank on solutions for the emerging markets, Temenos knows banking. The company has a transparent approach to its operations and brings to bear its experience, expertise, commitment and professionalism on every project. Headquartered in Geneva, Switzerland, the company has 43 offices in 33 countries and is listed on the main segment of the SWX Swiss Exchange (TEMN). For more information please visit www.temenos.com
About TLC Risk Solutions
TLC is a software product company serving the banking sector. The TLC approach is distinguished by a combination of deep business knowledge and experience and technology expertise enhanced by rigorous methodologies and disciplines. TLC’s primary focus lies in the areas of credit, operational and market risk for Basel II compliance.
For more information, contact:
Max Chuard
Temenos Director
Corporate Finance & IR
Member of the Executive Board
Tel: +41 (0) 22 708 1157
Email: mchuard@temenos.com
Ben Robinson
Temenos Investor Relations Manager
Tel: +44 (0) 207 290 3012
Email: brobinson@temenos.com
Bianca Morgan
Temenos PR Manager
Tel: +44 (0) 207 423 3751
Email: bmorgan@temenos.com
Chris Patmore
Team 660
Metia for TEMENOS
Tel: +44 (0) 20 3100 3596
Email: chris.patmore@metia.com