Swiss Bank-Software Provider Temenos Surges After Nordea Deal

  • Temenos shares rise the most since April 2012 in Zurich
  • Temenos CEO calls Nordea deal a `key win' for the company

Temenos AG, the Swiss provider of banking software, jumped the most in 3 1/2 years after announcing a deal with Sweden’s Nordea Bank AB and raising its 2015 outlook.

Temenos surged as much as 13.5 percent, the biggest gain since April 2012, and was up 12.5 percent at 37.80 Swiss francs as of 10:49 a.m. in Zurich. The shares have gained about 4.3 percent this year, valuing the company at 2.5 billion francs ($2.6 billion).

Temenos increased its 2015 outlook for software licensing, revenue and profit as it announced an agreement to provide Nordea with a new core banking platform for customer loans, deposits and transaction accounts, reducing the number of information-technology systems in use at the bank.

“The Nordea deal is a key win for us, which together with generally improving market conditions, allows us to increase our guidance for the year,” Temenos Chief Executive Officer David Arnott said in an e-mailed statement on Friday. “Large institutions are increasingly appreciating the need to replace core banking systems.”

Temenos, based in Geneva, is targeting total non-IFRS software licensing growth of 42 percent to 46 percent, up from 36 percent to 41 percent previously advised. The company said it also increased guidance for non-IFRS revenue growth and non-IFRS earnings before interest and taxes.

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