Temenos plunged as a lot as 33%, slashing its market worth by $2.4 billion, after Hindenburg Analysis alleged severe flaws within the Swiss banking software program firm’s books and took a brief place within the inventory.
The report by activist short-seller Hindenburg suggests “main accounting irregularities” for the software program maker for the monetary sector. Temenos additionally “manipulated earnings,” in line with the report, which provides that these practices have been an “open secret” throughout the firm.
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Temenos didn’t reply to a request for remark from Bloomberg Information.
The shares traded 32% decrease at 60 francs as of two:03 p.m. in Zurich, the largest drop since late 2002. It’s now price a few third in comparison with its 2019 peak of 13 billion Swiss francs ($14.7 billion).
Hindenburg Analysis, run by Nate Anderson, rose to prominence final yr when it focused the empires of high-profile businessmen internationally like Gautam Adani, Jack Dorsey, Carl Icahn, wiping out billions from their companies’ market capitalization at one level.
Bloomberg Intelligence analyst Tamlin Bason stated the report might erode the “constructive sentiment” that Temenos’s probably suspect 2023 outcomes supplied following a “disastrous 2022.” The corporate might deal with the allegations throughout its capital markets day on Feb. 20, he stated.
Temenos has lengthy been a goal for buy-out companies together with EQT AB, Permira, Nordic Capital, Thoma Bravo and KKR & Co. Takeover talks fell aside in 2022 as a consequence of tech valuations and pricing considerations.
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The Geneva-based firm can also be within the midst of a prolonged seek for a chief govt officer. The corporate’s chairman Andreas Andreades is presently the interim CEO after Max Chuard stepped down in January 2023 following activist strain.
Temenos creates cloud-based software program that monetary establishments can use to supply digital banking options, overseas trade and id verification providers. It’s utilized by greater than 3 000 purchasers together with Commonplace Chartered, Julius Baer, and Nordea, in line with its web site.
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