GENEVA, Switzerland – 20 September 2012 – Temenos AG (SIX: TEMN), the market leading provider of banking software, today announces that it has signed a definitive agreement to purchase edge IPK, a provider of user experience platform (UXP) software to the financial services industry.
edge IPK, headquartered in the UK and with operations in the US and India, provides financial institutions with the ability to launch and easily maintain a cutting-edge and consistent user experience across multiple channels products and geographies.
The company has been recognised as a ‘cool’ vendor by Gartner for its highly innovative UXP product edgeConnect, stating ‘some customers report delivering applications up to five times as quickly, with a fraction of the resources.’*
edgeConnect includes a runtime and integrated development environment (IDE) for the creation and management of multi-channel business applications, built once and deployed many times across different channels and devices – internet, mobile, tablet, branch, call centre etc. Another key feature is the capability for web designers to design and test user experience pages, forms and workflows, independently from developers or architects greatly speeding up time to market.
edgeConnect is used by a number of financial services companies, including Deutsche Bank, ABN Amro, Zurich and Allianz. In addition, it is soon to be deployed at Metro Bank as part of the internet banking portal for Temenos T24, the company’s flagship core banking solution.
The acquisition will enable Temenos to compete much more effectively in the financial services front office application market, which is estimated to be approximately the same size as the core banking market.** With the acquisition, Temenos will be able to offer a common UI across all of its products, a much enhanced user experience for direct customer channels as well as additional functionality, such as online customer acquisition. Temenos envisages strong demand from new and existing customers, and will continue to sell edgeConnect on a standalone basis as UXPs become the de facto standard in Financial Services, ‘subsuming the current markets for portal products and mashup tools.’*** All existing UIs that Temenos customers are using will continue to be supported.
The consideration paid for the acquisition, which is expected to be earnings neutral in 2012, has not been disclosed. In 2011, edge IPK generated revenues of USD5.7m and EBITDA of USD0.3m. The transaction is expected to close at the beginning of October.
David Arnott, CEO Temenos, comments:
We welcome edge IPK, its employees and customers to Temenos. This is a very exciting and highly strategic acquisition for us. Customers are increasingly consuming financial services via the Internet – using PCs, tablets and smartphones – and, as such, the range of services provided by financial institutions and the quality of the user experience is becoming a key battleground and a major determinant of customer satisfaction, as well as a vital tool for cross-selling and customer retention. With this acquisition, we are giving our customers the capability to out-innovate their competitors, launch new products more quickly and deliver a far superior customer experience.
Mike Williams, CEO edge IPK, comments:
We are very excited to be joining Temenos. The combined business will create a clear UXP market leader in financial services and generate significant opportunities for our customers and employees. edge IPK’s customers will directly benefit from the scale of Temenos’ research and development and the geographical breadth of its sales services organisation and partner network. As a result, we are looking forward to being able to offer our customers an accelerated product roadmap as well as a global implementation capacity.
Craig Donaldson, Chief Executive of Metro Bank comments:
Metro Bank’s philosophy is to always provide our customers with an amazing banking experience, whatever the channel. T24 as our back-office system enables us to do this. Their technology successfully supports our banking revolution, allowing us to open accounts and issue new customers with a cheque book and debit card on the spot. This success means that we are now working with Temenos and edge IPK on our next-generation internet banking application, helping us deliver a similarly superior experience across the web.
*Gartner: Cool Vendors in Web Computing, 2011
**According to Ovum, retail banks alone spend in excess of USD20bn annually on front office applications. See ‘Retail Banking Technology Spending Through 2016’
***Gartner: The Emerging User Experience Platform, 2011