LONDON- Swiss financial software group Temenos is studying options, including a sale, for its fund management unit Multifonds, three people familiar with the matter said.

Temenos, listed on the SIX Swiss Exchange, has been working with Rothschild and Goldman Sachs to gauge interest in the business, the first two people said. The sale is drawing private equity interest from funds including Montagu Private Equity, the first and third people said.

Temenos is looking for as much as 600 million euros ($653 million) for Multifonds, the first person added.

The three people spoke on condition of anonymity as the talks are private.

Representatives for Temenos and Rothschild did not respond to a request for comment. Montagu and Goldman Sachs declined to comment.

Discussions about the sale come during a tumultuous year for Temenos.

The company's shares plunged almost a third in value in February after a report by short-seller Hindenburg Research alleged accounting irregularities, which Temenos denied.

A special committee appointed by Temenos, including outside accountants and lawyers, in April called Hindenburg's allegations "incorrect and misleading".

Temenos then appointed Jean-Pierre Brulard as chief executive in May after his predecessor, interim CEO Andreas Andreades, came under pressure to step down from activist shareholder Petrus Advisers.

Founded in Luxembourg, Multifond’s software helps fund administrators and asset managers among others to improve operational efficiencies in areas such as accounting, investor dealing and shareholder record keeping.

Temenos makes software that connects the client-facing part of banks with back-office processing departments.

The company does not disclose financial results for Multifonds, but the first source said it was expected to generate earnings before interest, tax, depreciation and amortisation (EBITDA) of about 25 million euros and revenues of 57 million euros in 2024.

Temenos bought the business for 235 million euros in 2015 from private equity firm Summit Partners.

($1 = 0.9188 euros)

(Reporting by Amy-Jo Crowley. Additional reporting by Oliver Hirt. Editing by Anousha Sakoui and Mark Potter)


Reuters