The deal brings together Almonde’s asset and liability management (ALM) and regulatory compliance solutions (Basel II, IAS and FTP), with Misys Banking Systems’ existing Risk solutions.
Speaking to ComputerWire, Susan Cottam, Misys Group communications director, confirmed that the deal is being paid for out of Misys’ cash reserves, and there is no debt associated with the deal.
Almonde has offices in Paris and London, and most of its 35-strong workforce are based at its French headquarters. Cottam also confirmed that most of the workforce and the Paris office will not be affected. However, Almonde’s sales and marketing operation is to be integrated almost immediately into Misys, although support and development will remain in Paris for the foreseeable future.
Broadening the Misys risk management offering from banks’ trading book operations to incorporate the banking book activities will enable Misys customers to have a clear view of their full risk and profitability profile including the correlation effects, at both the global and transactional levels across the organization.
Misys and Almonde have been working together for the past year and had already formed a partnership to provide financial institutions with Basel II and ALM solutions.
This acquisition is a significant development for risk-management in the international banking market and is an example of our company strategy of organic growth complemented by product and market enhancing acquisitions, said Ivan Martin, CEO, Misys Banking Systems.
Last month, London, UK-based Misys forecast that its earnings for the full year would be at the top end of market expectations, although total revenue of 899.9m pounds ($1.64bn) was expected to be 1% down on last year’s level for the year to May 31.
Misys has been hard hit by the reluctance of banks to invest in upgraded systems, but it expects revenue to its banking division to be up 2% at 240.2m pounds ($437.6m). On a like-for-like basis, excluding currency movements, the increase is 7%.
