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Although the Temenos bid for Fidessa took the markets by surprise (see our comment on 20th February, Temenos takes a punt on Fidessa), the management of this Swiss-HQ’d provider of banking software had been planning its route into the Capital Markets business for some time. The £1.4bn deal, now recommended by the Fidessa Board of Directors, opens up the sector which Temenos reckons to be spending some US$14bn on IT. Looking at 2017 revenues, Capital Markets revenue will account for 40% of the enlarged Group.
The Fidessa portfolio sits well with that of Temenos and there is significant potential for cross selling. At the same time the Fidessa operation, which will run as a stand-alone division in the new Group, should benefit from Temenos’s emphasis on R&D, its strong sales focus and its approach to partnership and innovation.
The timing of this deal looks inspired. FinancialServicesViews subscribers can learn more by accessing “Temenos and Fidessa – Building a Full Service Provider”, here.
Posted by Peter Roe at '18:14' - Tagged: trading acquisition software financialservices banking
