Temenos acquires Sydney fintech company for $245m

Pedro Gonçalves
Temenos acquires Sydney fintech company for $245m

Financial services software giant Temenos is buying Australian customer acquisition and onboarding technology company Avoka for $245m.

Avoka's platform will be integrated with Temenos' Digital Front Office offering, adding to the multi-solution platform marketed to banks.

Founded in the Sydney beachside suburb of Manly in 2002 and with more than 85 customers including numerous Australian and global banks, Avoka now has more than 270 employees, with offices in Sydney, Denver, and London.

"By combining our strengths with Temenos' expertise and reach, we will expand our scope and scale to deliver winning omni-channel, digital experience solutions to banks globally," Avoka chief executive Philip Copeland said.

As part of the deal, Temenos will also take Avoka's 85 customers and 270 employees across Australia, the US and the UK.

"This is a highly strategic acquisition for Temenos as it not only reinforces our leadership position within the Digital Front Office space but it also strengthens our capabilities in the US market where we are seeing significant traction as banks accelerate their digital transformation plans," Temenos chief operating officer Max Chuard said.

Avoka's total revenue grew about 30% in 2018 and is expected to grow at the same rate in 2019 to reach approximately $50m, with 50% recurring revenue. 

The acquisition is set to finalise in the first quarter of next year and is subject to regulatory approvals.