Swiss banking software provider Temenos has agreed to divest its fund administration software business, Multifonds, to Montagu Private Equity for an enterprise value of approximately $400m, including an earnout.
The Multifonds executive management team will invest alongside Montagu as part of the transaction.
Multifonds provides fund administration software across multiple jurisdictions, serving fund administrators, asset managers, insurance companies, and pension funds.
It helps all asset classes to obtain better operational efficiency along with reducing risk.
Montagu, an investor in fund administration technology, will work with the Multifonds executive team to maintain service levels for existing customers. Temenos will also support the transition to ensure continuity.
The sale aligns with the banking software provider’s strategic plan to streamline its product portfolio and focus on core growth areas.
Announced at its Capital Markets Day in November 2024, the company’s strategy targets market leadership in “best of suite” banking solutions, modular core solutions, and adjacent point solutions.
Temenos stated: “Simplifying and rationalising the product portfolio enables Temenos to focus on its three growth levers of extending market leadership in “best of suite”, enhancing modular core solutions and accelerating adjacent point solutions.”
Subject to customary conditions, the transaction is expected to be completed in the second quarter of 2025.
Temenos expects to provide further details on the impact of its sale of fund administration software business when it announces its fourth-quarter and full-year 2024 results after the market closes on 18 February 2025.
In December 2024, Malaysia-based AHAM Capital selected Temenos to implement its Multifonds global accounting solution as a software-as-a-service (SaaS) platform.
In the same month, UK-based Valu-Trac Investment Management adopted Temenos Multifonds SaaS, transitioning from in-house systems to Multifonds Global Accounting (MFGA) and Multifonds Global Investor (MFGI).
