Swiss banking software provider Temenos has agreed to acquire UK financial technology firm Fidessa in a cash deal valued at around £1.4bn.
As per terms of the deal, Swiss firm’s subsidiary Temenos Holdings UK will pay £35.67 in cash for each Fidessa share, representing a premium of about 36.9% to the closing price of its £26.05 per share on 16 February.
Both Fidessa and Temenos offer software solutions and services to banks and financial institutions, helping Temenos to expand its financial software capabilities across product and geographies.
Fidessa offers software solutions and services, which will help to buy, sell and own different financial assets on a global basis. It operates two business units such as sell-side and buy-side.
The sell-side business unit offers solutions and tools for trading of cash equities and derivatives across the globe, while buy-side business unit offers systems to cover each stage of the investment process for all asset classes.
The deal will allow Temenos to combine Fidessa's expertise in SaaS with its sales, development and delivery operations to serve a larger client base.
The deal is expected to be completed in the first half of this year.
Temenos executive chairman Andreas Andreades said: We have long held Fidessa in high regard and we share a common goal of creating great software across both our segments and we are proud of our record of customer success and the exceptional client base we have built up amongst the global banks.
“We truly believe that this powerful combination will accelerate both companies complementary growth strategies in banking and capital markets and will enable us to cross-sell into our existing client bases and capture a greater share of the IT and software spend of banks especially as they move to the cloud.”
Temenos offers software products and services to manage front, middle and back-office activities, including retail, private, corporate and commercial banking, treasury and investment, fund and asset management, trade finance and risk management.
Image: Swiss firm Temenos to acquire financial technology firm Fidessa. Photo: courtesy of adamr / FreeDigitalPhotos.net.