Temenos : announces closing of Rubik acquisition and revises its 2017 outlook
May 21, 2017 at 11:19 pm EDT
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GENEVA, Switzerland, 22 May 2017 - Temenos (SIX: TEMN), the software specialist for banking and finance, today announces that the acquisition of Rubik Financial Limited ('Rubik'), a leading software provider to the Financial Services sector in Australia, has now closed. The acquisition was originally announced on 14 February 2017.
Founded in 2007, Rubik is an Australia-based software company providing banking, wealth management and mortgage broking solutions, primarily in Australia and also internationally across Asia and the Middle East. Rubik has more than 150 employees servicing 930 direct clients.
The combination of Rubik and Temenos will create a leader in the Australian market, enabling Temenos to benefit from increased scale and to accelerate growth across its key target segments including wealth, core and digital banking and fund administration. The Australian market represents a significant opportunity for Temenos, with spending on banking software forecast to grow at an 8% CAGR in the medium term and with the 4th largest investment market globally driven by the superannuation scheme.
Through the acquisition, Temenos now has relationships with 41 of the world's top 50 banks, up from 38 prior to the acquisition, with the addition of Commonwealth Bank Group, National Australia Bank and Westpac Banking Corporation to the Temenos client base.
Temenos has acquired 100% of the issued capital of Rubik for approximately A$68 million (US$50 million). The acquisition was funded from Temenos' existing cash.
The transaction is expected to contribute US$15m of non-IFRS revenues and to be non-IFRS EPS neutral for Temenos in 2017, and 3% accretive in 2018.
Revised 2017 outlook
Temenos revised its outlook for the year as follows*:
Total non-IFRS software licensing growth at constant currencies of 15% to 20% (implying total non-IFRS software licensing revenue of USD 287m to USD 300m, up from USD 276m to 288m)
Total non-IFRS revenue growth at constant currencies of 10% to 13% (implying non-IFRS revenue of USD 682m to USD 704m, up from USD 667m to USD 689m)
No change to non-IFRS EBIT at constant currency of USD 210m to 215m (implying non-IFRS EBIT margin of c.31%)
100%+ conversion of EBITDA into operating cashflow
Tax rate of 14% to 15%
*Assumes FX rates as disclosed in the Q1 2017 results presentation - https://www.temenos.com/en/about-temenos/investor-relations)
Temenos Group AG published this content on 21 May 2017 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 22 May 2017 03:19:06 UTC.
Original documenthttps://www.temenos.com/en/news-and-events/news/20172/may/temenos-announces-closing-of-rubik-acquisition-and------------------------------------------revises-its-2017-outlook/
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Temenos AG, formerly Temenos Group AG, is a Switzerland-based company engaged in the development and marketing of banking software systems. Its services include implementation, performance optimization, integration, administration, maintenance, upgrades, training and support for its software solutions. It offers solutions for retail, corporate, universal, Islamic and microfinance and community banking sectors, as well as for Private Wealth Management. The Company's client base consists of mostly banking and other financial services institutions. Its core products are Temenos T24 Core Banking (T24), a front to back office, Customer Relationship Management (CRM) and product lifecycle management software platform, as well as Front Office, an integrated, role-specific, and multi-channel solution that supports banksâ daily interactions and long term relationships with their retail, corporate, mass affluent, and High-Net-Worth (HNW) customers. It offers also funds and securities solutions.
TEMENOS GROUP 
