Axway Completes €330 Million Acquisition of Sopra Banking Software

On September 2, 2024, Axway finalised its acquisition of Sopra Banking Software for €330 million. This strategic move solidifies Axway’s position as a leading enterprise software provider, particularly within the banking and financial services sectors. The acquisition is poised to enhance Axway’s market presence and set the stage for significant growth over the coming years.

Key Financial Details and Operational Goals

The acquisition was facilitated through a series of crucial financial maneuvers, including a share capital increase of approximately €131 million and new credit facilities amounting to €200 million. These efforts were critical in funding the deal, which has now been approved by relevant regulatory bodies. Axway will integrate Sopra Banking Software’s operations for the last quarter of 2024, aiming to generate around €460 million in revenue for the fiscal year, with an operating margin between 13% and 17%.

Looking ahead, Axway has ambitious goals for 2025, targeting revenue of €700 million and an operating margin of 14% to 16%. By 2027, the company aspires to surpass €750 million in revenue and achieve an operating margin exceeding 17%. Long-term projections for 2028 include an operating margin reaching approximately 20% of revenue.

Leadership and Strategic Vision

Patrick Donovan will lead the newly formed group as CEO, while Eric Bierry will serve as Deputy CEO. Patrick expressed enthusiasm about the acquisition, stating, “The tie-up between Axway and Sopra Banking Software embodies a unique development opportunity. Our brands are strong, and our customer-centric business model has proven its effectiveness.” Eric echoed this sentiment, highlighting the acquisition’s potential to enhance value creation through a robust new group with expanded capabilities.

Commitment to Customers

In a statement addressing customers and partners, Vince Padua Axway’s Chief Product Officer reassured stakeholders of the company’s continued commitment to its core mission. “Our mission, strategy, and commitment to you remain steadfast and unchanged,” Vince affirmed. The acquisition is expected to strengthen existing products and technologies, enhancing integration and interoperability within the financial sector.

Conclusion

Axway’s acquisition of Sopra Banking Software marks a significant milestone in its growth strategy, positioning the company for substantial expansion and innovation in the enterprise software market. With a strong leadership team and a clear vision for the future, the newly combined entity is well-placed to drive value for its stakeholders and deliver on its ambitious targets.