Temenos has acquired TriNovus in a move designed to help the Swiss core banking vendor break into the US software-as-a-service (SaaS) market.
Birmingham, Alabama-based TriNovus provides its SaaS technology for compliance and core processing to over 800 US financial institutions.
Temenos says that the deal gives it SaaS and local market expertise with more than 50 new employees, cross-selling possibilities and the advantage of a recognised and respected name in the US compliance arena.
TriNovus has $17 million of contracted revenue backlog and "significant" forecasted standalone growth. The acquisition has 2013 forecast revenues of around $8 million and forecast costs of $8 million. The deal is being funded through a combination of cash reserves and treasury shares.
David Arnott, CEO, Temenos, says: "The financial services market is undergoing a generational shift. Changing customer behaviour coupled with technological advances, in particular in the area of mobility and multi-access devices, have revolutionised the way we bank and have rendered obsolete batch driven IT platforms built for a world of nine to five branch banking.
"We have been working with customers in the US since 1997 and have developed the right set of products, now enhanced and available on a SaaS basis with a much enlarged supporting team, to allow US financial institutions to leapfrog their peers and capitalise on the transformation taking place in the their market."
Meanwhile, Temenos says it also plans to launch a Level 1 American Depository Receipt, with Bank of New York Mellon acting as Depositary. The ADR is expected to begin trading during the second quarter.