Bottomline Technologies, the leading provider of cloud-based payment, invoice and banking solutions, realized the acquisition of Sterci SA and the signing of an agreement to purchase London-based Simplex GTP Ltd.

These leading providers of financial messaging solutions utilise the SWIFT global messaging network on behalf of more than 350 customers across 20 different countries. When the acquisitions are completed, the two companies, combined with Bottomline’s existing SWIFT Access Service financial messaging business, will create a new global centre of excellence in financial messaging, providing solutions for banks, financial institutions and corporations around the world.

Sterci is a strategic partner of Clearstream Services, for Swift services in the Service Bureau. “The financial industry increasingly demands complex software solutions to improve STP and automation, but at the same time, the industry also faces the continual challenges of cost containment and the need for operational excellence and efficiency”, explained the both partners in a recent event on True STP Automation for the Fund Industry.

Regarding the MT-MX migration, Clearstream IT Srevices and Sterci reminded the fact that at the end of 2015 the SWIFT messages MT 502, 509, and 515 will be decommissioned.  As from Q1 2013, a number of price incentives will be introduced for “early adopters”, but more critically, for those delaying the migration a number of price disincentives will also be introduced. “That’s why more and more key players in the funds industry are choosing Software as a Service (SaaS) solutions – already available complex software products that they can easily subscribe to and use.  However, this approach only addresses one side of the coin, as the supporting IT infrastructure and operation of the software in a SaaS mode are still an issue. That’s why Clearstream Services and Sterci have teamed up to provide a comprehensive service offering to the funds industry, with Sterci providing the best-in-class software products and Clearstream Services hosting and operating the software from their secure data centres located in Luxembourg.”

A new global centre of excellence in financial messaging

“We are delighted to welcome the customers and employees of Sterci and Simplex to Bottomline. Bringing together these three businesses creates a truly global financial messaging business with the expertise, resources and scale to help customers around the world optimise their financial transactions” said Rob Eberle, President and CEO of Bottomline Technologies (in picture). “These acquisitions extend our presence in Europe and further build on our core expertise in banking, payments and financial transactions, enabling us to offer our clients a broader suite of solutions to improve their operating efficiency and optimise their financial transactions.”

“Becoming part of Bottomline is a natural next step for Sterci, helping us to continue to expand the financial messaging business globally.” Simon Kalfon, CEO of Sterci commented. “The organizations are a strong fit as our cultures are very similar with both organizations having a commitment to outstanding customer service and a strong focus on cloud-based product innovation. We also cover complementary geographies and provide a broad range of financial messaging, reconciliation and market data integration solutions.”

Philip Walsh, CEO of Simplex said “Joining Bottomline once the acquisition is completed will be a great move for Simplex. Gaining access to Bottomline’s resources and expertise in banking, payments and financial transactions will enable us to further support and grow our client base.”

The newly combined business will become a market-leader in financial messaging serving over 530 banks, financial institutions and corporations across 20 different countries with locations in key financial hubs including Geneva, Frankfurt, Paris, London, New York, Toronto and Singapore.

The acquisitions build Bottomline’s share of the expanding financial messaging marketplace as organizations seek to improve the effectiveness of their financial operations by utilizing the SWIFT global network. Over 10,200 organizations are members of SWIFT with more than 400 new organizations joining each year, including an increasing percentage of corporations.

The Sterci acquisition has closed. The acquisition of Simplex is subject to certain shareholder approvals and other customary closing conditions and is expected to close in the next month.