Temenos Group, a provider of core banking software that earlier this year missed out on buying Misys, is to purchase another UK firm in edge IPK, which specialises in supplying internet user experience platform (UXP) software to the financial services industry.
The takeover is expected to close in early October subject to the relevant approvals and the full financial details have not been disclosed. Last year, edge IPK generated revenues of US$5.7m and earnings before interest, taxes, depreciation and amortization (EBITDA) of US$0.3m.
edge IPK, headquartered in the UK and with operations in the US and India, provides financial institutions with the ability to launch and easily maintain a cutting-edge and consistent user experience across multiple channels, products and geographies.
The company has been recognised as a ‘cool’ vendor by Gartner for its UXP product edgeConnect, and is positioning itself for the new social media and mobile banking and m-commerce world.
edgeConnect includes a runtime and integrated development environment (IDE) for the creation and management of multi-channel business applications, built once and deployed many times across different channels and devices, such as the internet, mobile, tablet, branch, call centre, etc. Another key feature is the capability for web designers to design and test user experience pages, forms and workflows, independently from developers or architects greatly speeding up time to market.
edgeConnect is used by a number of financial services companies, including Deutsche Bank, ABN Amro, Zurich and Allianz. In addition, it is soon to be deployed at Metro Bank as part of the white labelled internet banking portal run and supported by Temenos’ T24 core banking product.
The acquisition will enable Temenos to compete much more effectively in the financial services front office application market, which is estimated to be approximately the same size as the core banking market.
“We welcome edge IPK, its employees and customers to Temenos,” said David Arnott, the relatively new chief executive of Temenos, when commenting upon the deal. “This is a very exciting and highly strategic acquisition for us. Customers are increasingly consuming financial services via the Internet – using PCs, tablets and smartphones – and, as such, the range of services provided by financial institutions and the quality of the user experience is becoming a key battleground and a major determinant of customer satisfaction, as well as a vital tool for cross-selling and customer retention. With this acquisition, we are giving our customers the capability to out-innovate their competitors, launch new products more quickly and deliver a far superior customer experience.”
According to Craig Donaldson, chief executive of Metro Bank UK, “we are now working with Temenos and edge IPK on our next-generation internet banking application, helping us deliver a superior experience across the web”. The bank will be the launch customer for the new tie-up.
By Neil Ainger