GENEVA–Temenos, which provides various software solutions to financial institutions, including credit unions, said it is acquiring Kony, a mobile and application development business that offers a leading digital banking SaaS product. Temenos will purchase Kony for $559 million and an earn-out of $21 million, and the deal is expected to close by early Q4 2019, according to the companies.
“The deal should help Temenos step up its presence and capabilities in the US, where addressable market for digital front office banking software amounts to $9 billion. Globally, it's a $23 billion market,” one analysis noted.
Temenos Infinity, the company's digital front office product, has more than 500 banking clients and will seek to provide more functionality to its product offerings with Kony's Digital Banking Experience. In announcing the deal the two companies said the Kony product has been growing rapidly among top tier and mid-market banks in the U.S. and is connected to most third-party cores. The Kony DBX includes a suite of mobile banking apps that support conversational interfaces, artificial intelligence, augmented reality, and wearable technologies.
When the deal closes, Kony Chairman and CEO Thomas E. Hogan will be appointed as president of Temenos North America and a member of the Temenos Executive Committee.