Axway acquires Sopra Banking Software in €330m deal

By Gloria Methri

Axway has completed the acquisition of Sopra Banking Software, establishing one of France’s top enterprise software publishers, having expertise in banking and financial services. This significant step in the company’s development initiates an alliance project aimed at delivering substantial value to all its stakeholders.

First announced at the end of February, Axway’s proposed acquisition of Sopra Banking Software was made possible by the execution of several critical operations in recent months. With strong support from its shareholders and the addition of new investors, over the summer, the company carried out a share capital increase with preferential subscription rights for a gross amount of c.€131m. This is combined with the securing of new credit facilities (c.€200m) from partner banks to finance the acquisition for an enterprise value of €330 million.

Axway’s acquisition of Sopra Banking Software has received the approval of the relevant regulatory authorities, and the integration of the two entities is beginning. The latter part of 2024 and into 2025 will be instrumental in the ramp-up of the new Group and will enable the expected cost optimizations to materialize.

Patrick Donovan, CEO, and Eric Bierry, deputy CEO, will head the group.

Patrick Donovan, Chief Executive Officer, said, “The tie-up between Axway and Sopra Banking Software embodies a unique development opportunity, and the ambitious industrial project we have been working towards can finally come to life. Our brands are strong, our flagship products are recognized among the best in their markets, and our customer-centric business model, refined over several years of transformation, has proven its effectiveness. The operational work begins now, with the unwavering priority for both Axway and Sopra Banking Software remaining, as always, the success of our customers’ projects.”

Eric Bierry, Deputy Chief Executive Officer, added, “We are incredibly excited to be part of creating a new global powerhouse in enterprise software. Our technology platforms and business software have a long and successful track record of driving the transformation of some of the world’s largest banking and financial institutions, and this alliance significantly strengthens our positions, offerings, technologies and perspectives. This operation provides a major opportunity to accelerate our value creation for all our stakeholders through a new Group of critical size with tenfold capabilities. I am particularly pleased that our 5,000 employees, from 26 countries around the world, are seeing our entrepreneurial culture thrive through a project filled with compelling opportunities.”

The consolidation of Sopra Banking Software is effective today, and Axway will, therefore, integrate the acquired activities for the last four months of the 2024 financial year. On this basis, the Group is targeting 2024 revenue of around €460 million and an operating margin of between 13% and 17%.