Temenos, the Geneva-based core banking software maker, is buying TriNovus, an Alabama-based developer of software-as-a-service for community banks.
The deal would enable Temenos to enlarge its footprint in the U.S. banking market and provide it with complementary products and local knowledge. Temonos plans to launch a software-as-a-service offering for the U.S. market based on its T24 core banking platform, its Insight solution for business analytics and its Profile and Screen Anti-Money Laundering applications. TriNovus provides compliance, mobile banking, mortgage foreclosure and core processing software to roughly 800 U.S. institutions.
Temenos is expected to pay roughly $25.5 million for TriNovus in the deal, which is roughly 1.5 times TriNovus' $17 million of contracted revenue backlog. Temenos said it would fund the deal through a combination of cash and stock. The companies have not said when they expect the deal to close.
In a press release, David Arnott, Temenos' chief executive, said the TriNovus acquisition would give his company "a much enlarged supporting team, to allow U.S. financial institutions to leapfrog their peers and capitalize on the transformation taking place in the their market."
David Brasfield, TriNovus' chief executive, who is expected to remain with the company following its acquisition by Temenos, said "the combination brings to the U.S. market for the first time a credible and technologically advanced alternative to the large incumbents vendors."
Temenos, which currently serves private banks in New York and Boston, has been aiming to increase its share of the U.S. market, especially among community banks that are open to using cloud-hosted software rather than outsourcing, Arnott recently told Bank Technology News.
Though Temenos struggled with sales throughout much of last year following eight years of growth, the company bounced back in the fourth quarter, when revenue rose 6% from a year earlier, to $134 million.