Nordic Capital Pursues Temenos as Other Suitors Drop

Dinesh Nair, Jan-Henrik Förster and Eyk Henning, Bloomberg News

(Bloomberg) -- Nordic Capital is one of the last suitors for Temenos AG after rival buyout firms dropped from the latest attempt to sell the Swiss banking software maker, people with knowledge of the matter said.

The Swedish private equity firm is holding talks with Temenos and lining up financing as it pursues a potential deal as early as this month, said the people, who asked not to be identified discussing confidential information. Nordic Capital could seek co-investors for the deal, given Temenos’s market value of 6 billion francs ($6.7 billion).

Previous suitors including EQT AB, Thoma Bravo and Permira are no longer in the race, the people said. Other private equity firms including Blackstone Inc. are still studying the asset, though not actively in takeover talks, some of the people said.

Temenos asked for fresh expressions of interest from potential suitors earlier this year, having seen previous takeover talks fall apart in 2022 over price and diverging views among management and shareholders. The company is under pressure from activist investor Petrus Advisers and has responded by overhauling its board and setting new mid-term targets.

Talks with Nordic Capital are ongoing and may not lead to an agreement, and other suitors could still emerge, the people said. Representatives for Blackstone, EQT, Nordic Capital, Permira, Temenos and Thoma Bravo declined to comment.

A deal for Temenos would be one of the largest ever for Nordic Capital, which was launched in 1989 by Svenska Handelsbanken AB bankers Robert Andreen and Morgan Olsson. It’s gone on to invest €22 billion ($23.7 billion) in more than 130 companies, according to its website. The firm has about 215 employees and primarily targets the health-care, technology, industrial and financial services industries.

Read More: Quiet Nordic Buyout Firm Hunts Down Targets in Record Year

While markets have seen some larger take-privates in recent weeks with Network International Holdings Plc for about £2.2 billion ($2.8 billion) and Dechra Pharmaceuticals Plc for £4.46 billion, big buyouts remain difficult to finance.

--With assistance from Aaron Kirchfeld.