Temenos announces closing of the acquisition of Avoka, a US-headquartered SaaS vendor
GENEVA, Switzerland – December 21, 2018 – Temenos (SIX: TEMN), the banking software company, today announces that the acquisition of Avoka, a leader in digital customer acquisition and onboarding, has now closed. The acquisition was originally announced on 12 December 2018.
The acquisition further strengthens the Temenos Digital Front Office product, which has over 300 banking clients and has been recognized as a leader by top analyst houses such as Forrester and Ovum. The Avoka platform will be integrated with the Temenos Digital Front Office product, providing banks with a comprehensive single solution for their omni-channel digital banking needs.
Through this acquisition, Temenos continues to bring innovative capabilities to its Digital Front Office product that includes origination, channels, analytics, payments, risk and compliance and real-time event based marketing services all of which can be deployed either on premise or in the cloud.
Avoka has more than 85 customers that are largely served through a SaaS model hosted on the cloud, and serves all key banking segments including retail, corporate and wealth. Founded in Australia, its customer base has grown most rapidly with both top tier and mid-market banks with clients in Europe, Australia and US. With over 270 employees in offices across the US, UK and Australia, Avoka is purpose-built for creating omni-channel customer acquisition and on boarding solutions that enable banks to create simple customer-friendly experiences that improve conversion rates. Avoka clients such as a top tier bank increased new account opening by 60% and shortened customer time to onboard by nearly 70%, while another major bank created an advisor-assisted, tablet-based loan application, from kickoff to launch in 60 days.
Temenos has acquired 100% of the issued share capital of Avoka for USD 245m. The acquisition was funded through cash and debt. Avoka's total revenue grew c.30% in 2018 and is expected to grow at the same rate in 2019 to reach c.USD50m, with 50% of total revenue from recurring SaaS product revenues. The acquisition is expected to be non-IFRS EPS neutral in 2019, accretive from 2020 and to achieve group margin within two years.