Swiss banking systems vendor Temenos has signed a definitive agreement to acquire ACTIS.BSP, a Germany-based provider of core banking and securities technology, for US$19m in cash.
ACTIS.BSP is a subsidiary of Flexible Management Systems (FMS) and provides technology to financial services firms including Dresdner Bank, Postbank, DekaBank and DaimlerChrysler Bank. Approximately 50% of the firm's revenues are recurring maintenance and outsourcing revenues.
Temenos says the acquisition will provide it with access to the German market, an additional client base of over 30 financial institutions and a further 144 staff.
Commenting on the acquisition, Andreas Andreades, CEO, Temenos, says: "Germany represents a sizeable and important market for Temenos and the acquisition gives us the ability to achieve a faster entry and accelerate our sales in this region as well as provide our existing global clients with additional regional expertise."
Temenos says the transaction will contribute approximately US20m of revenues to its business over the next 12 months.
Under the terms of the acquisition agreement, Temenos will operate Actis.BSP through its existing offices in Frankfurt and Grosswallstadt and will continue to support Actis.BSP products.
Temenos said last month that it was looking to grow with acquisitions that would strengthen its core business. The vendor also reported a core banking joint development and distribution agreement with an un-named company that covers the distribution of its Temenos Core Banking (TCB) platform to financial services firms in the US.