Akcelerant, a U.S.-based financial software provider active in the accounts receivable management space, has been acquired by Temenos, a Switzerland-based firm seeking growth opportunities in North America. The companies announced the deal on Tuesday.
Consideration for the acquisition is $50 million in cash with a further $5 million subject to an earn-out over the next three years, the companies reported.
Akcelerant, founded in 2000, is predominately active in the credit union industry. The company offers multiple softward services to more than 600 financial service firms in North America - helping companies grow new loans, control risk and operate more efficiently and profitably, the company reports.
The acquisition is central to Temenos' North America growth plans, particularly in the U.S. It follows the 2013 acquisition of Trinovus, a software technology firm. The purchase of Akcelerant will allow it to offer a broader portfolio of products to both new and existing customers, Temenos officials said.
Akcelerant is expected to see revenues of $15 million in 2015, 75% of which will be recurring revenues.
Jay Mossman, founder and CEO of Akcelerant, will continue as its CEO and join the Temenos USA management team.
"The combination of Temenos' North American business with Akcelerant represents an excellent fit for our customers and employees," Mossman said. "While Temenos is a global market leader in banking software, there remains great potential to improve our market share in the Americas. Akcelerant will help to achieve this potential, adding market-leading product capabilities spanning loan and account origination, service, collections, recovery and profitability."
The executive team at Akcelerant will remain intact, Temenos officials said.
In the last 12 months, Temenos has signed eight customers for its core banking platform, the first being Independence Bancshares, which is now live with the offering; eight customers for Insight, its predictive analytics engine; and it now has more than 1,300 customers for its compliance services, TriComply, SocialComply and BankerVMS.