Temenos strengthens Business Intelligence offering with acquisition of Lydian Associates

GENEVA, Switzerland, 3 November 2008 – Temenos (SWX: TEMN), the provider of integrated core banking systems, today announced that it is acquiring Lydian Associates Limited, a UK-based provider of Business Intelligence (BI) software for the banking sector. The acquisition price was not disclosed.

Lydian Associates Ltd, formed in 1998, sells a range of products under the Webform brand that, by affording multidimensional analysis of a bank’s data, permit better-informed management decisions. The products give users the ability to produce desktop reports, graphics and dashboards - defined according to any specified parameters or Key Performance Indicators (KPIs) - that are invaluable in assessing performance, profitability and liquidity.

Temenos will integrate the Webform products with the T24 Data Warehouse. The T24 Data Warehouse, which was introduced as part of the R08 release of T24, is an integral part of T24 with the clear benefit of tight integration between operational and management information. The Webform products will add the ability to interrogate this data using pre-packaged multi-dimensional analysis tools.

Lydian Associates Ltd was founded by Graham Goble, who started his career at Kapiti Ltd (a company acquired by Misys in 1994) and the products were originally designed for Misys Equation customers. In fact, of the 45 existing clients, who will continue to receive full support after the acquisition, all are either Misys Equation or Bankmaster clients. On top of its core BI products, Lydian Associates also developed a number of standard software applications that provide Misys clients with solutions for the automated production of central bank reporting and a profit-distribution application central to compliance with Islamic Banking regulations. The total acquisition price, which is not disclosed, consists of an up-front consideration and further payments contingent on Lydian achieving performance criteria. In its last financial year (to end of May 2008), Lydian made an operating profit of USD560,000 on revenue of USD1.8m.

Commenting on the acquisition, Graham Goble says, “This is a very exciting step for Lydian Associates. We have enjoyed great success over the years by delivering software with clear and immediate value for banks, but by becoming part of Temenos we will gain access to significantly more development resources and also a much wider client base. We therefore believe that we can create more value for customers as part of Temenos than as a standalone business.”

Andreas Andreades, Temenos CEO, adds, “We welcome Graham and his team to Temenos. The provision of highquality, real-time information for decision-making is clearly an area of strategic importance for banks and has been made even more so by the recent banking crisis. Consequently, we are taking this opportunity to acquire Lydian Associates in order to enhance our offering in this area. Integration is under way and, given the excellent level of fit between Lydian’s solutions and our own BI modules, we will be able to provide clients with an integrated BI product suite in January 2009.”

About Temenos T24
T24 Model bank is a packaged core banking software that provides banks with unparalleled richness in functionality on an integrated, service orientated architecture with support from front to back office. T24 Model Bank includes pre-configured, industry best practices for each banking sector, enabling banks to optimise operations and processes while remaining agile, flexible and responsive to business change. Fully integrated CRM and business intelligence capabilities provide a high degree of customer intimacy and a clear and deep understanding of the enterprise including its risk and performance. Its highly automated implementation approach delivers short implementations with a rapid and measurable return on investment. Its scalability, as underlined by recently reported Temenos/IBM performance tests, means T24 is capable of servicing of banks ranging from small to up to 25million accounts.

T24 incorporates modern technology including a comprehensive Service Orientated Architecture (SOA). It’s also fully enabled for standard SOAP (Simple Object Access Protocol) web services, and BPEL process execution. T24 is compliant with industry leading ESBs (Enterprise Service Buses) and can be deployed on fully scalable, multiserver n-tier architecture. It provides a full front-to-back solution from electronic delivery channels such as mobile devices and internet banking right through to settlement, general ledger and other back office functions. This is delivered in a fully integrated, reliable and cost effective environment. Temenos’ total commitment to open standards enables its customers to benefit from the latest advances in technology ensuring business agility, continuity, data integrity and reduced downtime delivering a significant, immediate and ongoing return on investment.

About Temenos
Founded in 1993 and listed on the Swiss Stock Exchange (SWX: TEMN), Temenos Group AG is a global provider of banking software systems in the Retail, Corporate & Correspondent, Universal, Private, Islamic and Microfinance & Community banking markets. Headquartered in Geneva with 44 offices worldwide, Temenos serves over 650 customers in more than 120 countries. Temenos’ software products provide advanced technology and rich functionality, incorporating best practice processes that leverage Temenos’ experience in over 600 implementations around the globe. Temenos’ advanced and automated implementation approach, provided by its strong Client Services organisation, ensures efficient and low-risk core banking platform migrations.

Temenos annually invests around 20% in R&D, significantly more than its peers, into a single fully packaged upgradeable software release, which ensures all Temenos customers benefit from modern technology and support indefinitely.