Axway to buy most of Sopra Banking Software activities for €330m

By Gloria Methri

Axway has entered discussions for the potential acquisition of most of Sopra Banking Software (SBS) activities, which are currently part of Sopra Steria Group. This acquisition suits Axway’s medium-term strategic roadmap, as outlined by the company over the last few years, creating a new enterprise software house with a critical scale.

The acquisition of SBS activities would provide an opportunity for Axway to expand its product portfolio and continue its development by capitalizing on its recent performance. SBS, a recognized provider of banking and financial software, would in turn benefit from the scale and experience of a global software structure that has already transitioned to a subscription-based business model.

Axway and SBS were both born within the Sopra Steria Group and have a common set of values, built around an independent enterprise project. Axway is also an OEM partner of SBS through its API Management offering and has for many years enriched the functionalities of SBS applications with its integration solutions.

If completed, the combination would give rise to a new enterprise software house with critical scale, able to meet banking application and integration needs with increased firepower and visibility thanks to the expertise of around 5,000 employees worldwide.

Axway would acquire the SBS activities concerned by the operation for an enterprise value of €330 million. This value is subject to confirmatory due diligence and will be reviewed by an independent expert (Cabinet Finexsi).

Axway intends to finance the contemplated transaction through the combination of a c.€130 million capital increase with preferential subscription rights and new debt facilities for the balance, for which Axway has received a comfort letter from Société Générale and Groupe Crédit Agricole, two of its relationship banks.

Pierre Pasquier, Chairman of Axway, Sopra Steria and Sopra GMT, declared, “Axway’s proposed acquisition of most of SBS’s activities represents an undeniable strategic opportunity for both companies. The creation of this strong critically sized enterprise software house would support an independent and successful entrepreneurial project over the long term. Furthermore, by welcoming One Equity Partners to Sopra GMT’s capital, we will be in a better position, through our role as reference shareholder, to support the combined entity in its future external growth objectives.”