Kony, an Austin-based digital app platform, has been acquired by Switzerland banking software giant Temenos for an enterprise value of $559 million and a reported earn-out of $21 million. The deal is subject to regulatory approval.
Kony, which was founded in 2007 and has raised just over $150 million in funding, is behind Kony DBX, its suite of leading mobile banking apps.
According to a statement, the acquisition accelerates Temenos’ growth in the United States, "bringing substantial scale, digital expertise and increased market presence." Kony's digital banking experience product will also strengthen Temenos Infinity, the company's digital front office product, which counts over 500 banking firms as clients.
Explained Temenos CEO Max Chuard, "The acquisition of Kony, the US #1 digital banking SaaS company is highly strategic and will allow us to grow both our US and our digital front office business faster, while being highly accretive and synergistic to the rest of our business. We are acquiring a digital front office product that has already been successful in the US market and is connected to most third party cores."
Kony Chairman and CEO Thomas E. Hogan will become President of Temenos North America and join Temenos’ Executive Committee.
In late July, Kony landed $37 million in debt financing from BMO‘s Technology and Innovation Banking group. At the time, Kony announced that it would use the funding to advance its Kony DBX digital banking and Kony Quantum low-code platforms.
That most recent funding followed a survey by Kony that found that, despite roughly $5 trillion in investment for digital tools, only 19% of surveyed consumer report any significant improvement in the experiences they’re offered. And that, Hogan said, “demonstrates the enormous opportunity that remains for businesses to leverage digital for customer loyalty, service levels, convenience, and commerce.”
