TEMENOS Group has signed an agreement to acquire the assets of TLC Risk Solutions, a provider of Basel II-compliant credit and operational risk banking solutions.
Under the terms of the agreement, signed on January 11, 2006, TEMENOS will acquire the company’s barracuda software product, solution for the calculation of regulatory capital under Basel II.
TEMENOS and TLC, a small private company, first formed an alliance in October 2004 in response to address industry need for a core banking solution with integrated risk management. The alliance enabled banks to integrate TLC’s Basel II product with TEMENOS’ market-leading core banking systems. barracuda provides a predefined, Basel II-specific, data taxonomy and acts as the data ‘concentrator’ for all the data from disparate source systems required to properly calculate Risk Weighted Assets (RWA) under Basel II.
“With the escalating complexities of trades and the continued challenge to meet compliance and regulatory requirements, risk management is of increasing importance to global financial institutions,” said Andreas Andrade’s, CEO at TEMENOS. “It is a very complimentary acquisition for us, which will broaden our platform offering and strengthen our position in the risk area.”
The first joint client of the alliance, Universal Bank in Cyprus, implemented the combined solution in 2005.
TEMENOS will immediately rebred barracuda as T-Risk and provide it as a stand-alone product that can be integrated within TEMENOS T24(tm) and the company’s modular and core banking systems.