Temenos (TEMN) investor relations material

Deal rationale and strategic fit

• Expands reach into the fast-growing mass affluent wealth segment and enables personalized advice at scale, leveraging AI-driven orchestration and addressing generational wealth transfer and digital demand in emerging markets.

• Accelerates innovation and modernization of digital onboarding, origination, and complex customer journeys, supporting expansion into adjacent areas like credit origination.

• Provides a scalable, core-agnostic, cloud-native digital wealth platform, reducing implementation cycles from 12+ months to 3–6 months.

• Complements existing strengths in ultra/high-net-worth segments and supports strategy to deliver scalable, compliant, and personalized wealth services globally.

• Strong cultural alignment and domain expertise from the acquired, founder-led management team, who will continue to operate the business.

Financial terms and conditions

• 100% acquisition funded by an approximately equal mix of cash and equity; selling shareholders take 50% of consideration in shares, reflecting confidence in future growth.

• Deal expected to close in early Q3 2026, subject to customary regulatory approvals and independent fairness opinion by IFBC AG.

• Marginally accretive to ARR and SaaS growth in FY-26; neutral impact on EBIT, EPS, and free cash flow.

• Pro forma leverage expected within target range of 1x to 1.5x by year-end 2026.

Synergies and expected cost savings

• Revenue synergies expected from cross-selling the platform to the existing client base and expanding into new markets.

• Enables rapid design and launch of wealth propositions, reducing implementation time to 3–6 months.

• Joint development of new AI use cases and orchestration journeys across banking verticals.

• Increases operational scale and reduces cost to serve through AI automation.