Temenos, a Switzerland-based banking software company, announced Wednesday that it's acquiring Kony, the 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.
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.
Temenos Infinity, the company's digital front office product, already has more than 500 banking clients. Temenos aims to add more functionality to that product with Kony's Digital Banking Experience (Kony DBX). The Kony product has been growing rapidly among top tier and mid-market banks in the US, the companies said, and is connected to most third-party cores. 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.