Temenos Group is acquiring fund administration software provider Multifonds for €235 million.
A shareholder group led by growth equity investor Summit Partners is selling Multifonds. The transaction is being funded through a mixture of cash and debt, and is expected to close today.
Following the acquisition, Oded Weiss, CEO of Multifonds, will continue to run the company along with the current management team. Weiss will also join the Temenos senior management team.
Weiss commented: “Temenos adds complementary, market-leading fund management software to its portfolio of market-leading products. And, as part of Temenos, Multifonds will have the opportunity to grow much faster by leveraging Temenos’s sales and marketing, partner and R&D infrastructure.”
“The deal is a win-win for all stakeholders and, together with the management team from Multifonds, I am committed to the group’s future success.”
Temenos CEO David Arnott added: “Following the Multifonds acquisition, Temenos now has best-of-breed software spanning private and wealth management, retail banking, transaction banking, compliance and fund administration, enabling us to offer a broad and highly compelling solution to meet our customers’ needs in a rapidly changing environment.”
“Further, we achieve a greater level of scale with a higher proportion of recurring revenues, which will give us the size and the predictability to accelerate strategic investments to grow the overall business.”
Headquartered in Luxembourg, Multifonds provides software to financial services institutions globally, predominantly in the third-party fund administration market.
Its software allows fund administrators to perform key accounting functions such as intra-day valuations and end-of-day NAV calculations, as well as to support fund administrators in key investor servicing and transfer agency functions, including investor dealing and shareholder record keeping.
The software provider has more than 470 employees in 14 offices globally. It has seen total revenues grow at around 10 percent per annum over recent years.
Temenos said it aims to combine its securities processing, custody and enterprise data management functionality with the Multifonds fund accounting platform to create a complete, integrated solution for the fund management industry.
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