Singapore headquartered banking and enterprise resource planning (ERP) software vendor Azentio Software has acquired several software assets from fellow vendor Path Solutions, a move it claims will see it add scale to its Islamic and core banking offerings.
Headquartered in Singapore, Azentio Software already claims a suite of software products for banking and insurance, asset management and ERP verticals, which it provides to customers primarily across the Middle East and Africa, Asia Pacific and India.
The deal with Path Solutions sees the local software player pick up Path Software's flagship products iMAL, iShraq, Path Digital and Path Analytics.
Path Solutions was founded in 1992, with its business based around a range of core banking, retail banking, transaction banking, lending, treasury, digital banking and analytics solutions for banks and financial institutions.
The software products that will change hands as part of the deal with Azentio are largely designed to help Islamic banks with digital transformation, to deliver "frictionless" customer experience and drive long term sustainable growth.
It is hoped the acquisition will strengthen Azentio's banking portfolio by adding complimentary core banking software capabilities and a full spectrum of next generation solutions focused on Islamic banks and financial institutions.
As part of the deal, Path Solutions' team of domain and technical specialists will augment Azentio's capabilities as it aims to expand its banking, financial services and insurance (BFSI) industry standing across Asia Pacific (APAC), the Middle East and Africa (MEA).
At the same time, Path Solutions will be supported by Azentio with increased investments in research and development, sales and customer service to deliver enhanced value to customers.
The Path Solutions products, together with Azentio's banking portfolio, are anticipated to provide an end-to-end integrated solution to banks in the region.
"The acquisition has great significance for us, as it adds scale and depth to Azentio's Islamic and core banking offerings and further reinforces our vision and resolve to be a regional leader in the BFSI software space across APAC, MEA and emerging markets,” said Tony Kinnear, Azentio CEO.
“IMAL's industry-leading digital Islamic core banking platform has been recognised by industry analysts for its broad and deep Islamic functionality, flexibility and operational performance.
“I am extremely happy to welcome [Path Solutions group chairman and CEO] Mohammed Kateeb and the Path Solutions team, clients and partners to Azentio. We complement each other well, with both organisations focused on making a real difference to our clients,” he added.
The transaction remains contingent on regulatory approvals and is subject to customary closing conditions.
Azentio isn't the only software vendor doubling down on the banking sector right now. In April, German software giant SAP revealed plans to launch a dedicated financial services industry (FSI) unit in partnership with investment company Dediq, with the aim of further tapping into the banking and insurance industry.
As part of the deal, both SAP and Dediq planned to provide the FSI business unit with funding, technology and development expertise, as well as a broad ecosystem of partners needed to establish the business as a major player in the FSI IT market. Dediq’s investment alone will be more than €500 million.