The banking software company Temenos is strengthening its digital front-office product with a deal to acquire a banking technology provider.
Temenos is buying Avoka, a software-as-a-service company that helps bank’s customers open accounts, apply for loans and onboard with digital products, for $245 million. The deal is scheduled to close in the first quarter.
“It not only reinforces our leadership position within the digital front office space but it also strengthens our capabilities in the U.S. market where we are seeing significant traction as banks accelerate their digital transformation plans,” Max Chuard, Temenos’ chief financial and operating officer, said in a press release Wednesday.
Temenos, which is based in Geneva, will add origination, channels, analytics, payments, risk and compliance, and real-time event-based marketing services, all of which can be deployed either on premise or in the cloud.
Avoka is designed to create an experience on phones, tablets and desktops that connects to the experience at branch and call centers. It has 85 bank clients and 270 employees in offices across the U.S., U.K. and Australia. Avoka was founded in Australia and has offices in Sydney, London and Denver.
Through open application programming interfaces, Avoka offers integrations to a catalog of third-party fintechs as well as customer relationship management, fraud detection, risk, identity verification and analytics platforms. That allows banks to use the product while remaining compliant and avoiding risk.
“By combining our strengths with Temenos’ expertise and reach, we will expand our scope and scale to deliver winning omnichannel, digital experience solutions to banks globally,” Philip Copeland, Avoka’s CEO, said in the release. “The combination of Temenos and Avoka is an excellent fit for our customers and employees and will catapult our growth to the next stage.”