The boards of Temenos and Fidessa have reached an agreement on the terms of an all-cash £1.4 billion acquisition of the UK-based technology supplier.

As part of the agreement, Fidessa shareholders will be entitled to receive £35.67 in cash for each Fidessa share, representing a premium of approximately £6.9 per cent to the closing price of £26.05 per share on 16 February 2018.

The Temenos board believes that the partnership will yield significant benefits through efficiencies and cross-selling opportunities, and expects the transaction to generate around $60 million per annum in cost savings.

Andreas Andreades, executive chairman of Temenos, said: “I am delighted to have reached agreement on a recommended acquisition of Fidessa which will create a global leader across financial services software.

“We have long held Fidessa in high regard and we share a common goal of creating great software across both our segments and we are proud of our record of customer success and the exceptional client base we have built up amongst the global banks,” he continued.

“We truly believe that this powerful combination will accelerate both companies complementary growth strategies in banking and capital markets and will enable us to cross-sell into our existing client bases and capture a greater share of the IT and software spend of banks especially as they move to the cloud.”

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