Axway completes its acquisition of Sopra Banking Software

Initially announced in late February, the acquisition was made possible following a series of key financial operations in recent months. With backing from shareholders and the involvement of new investors, Axway raised approximately EUR 131 million through a share capital increase with preferential subscription rights. Additionally, the company secured around EUR 200 million in new credit facilities from partner banks. These funds were used to finance the acquisition, which had an enterprise value of EUR 330 million.

Regulatory approval for the acquisition has been obtained, and the integration of the two companies is now underway. The latter part of 2024 and early 2025 will be critical for the new Group's growth, as it seeks to achieve cost efficiencies.

Leadership statements 

Representatives from Axway stated that the acquisition marks a crucial moment for the company, enabling the realisation of a long-term industrial project. They emphasised that the operational focus would remain on ensuring the success of customers' projects, and he expressed confidence in the teams' ability to achieve this goal. 

Official from Sopra Banking Software highlighted the strategic importance of the acquisition, noting that it significantly enhances the Group’s capabilities and positions in the market. They also pointed out that the merger offers substantial opportunities for value creation, benefiting all stakeholders involved. With the acquisition now complete, Axway will incorporate Sopra Banking Software’s activities for the final four months of the 2024 financial year. The company is targeting 2024 revenue of around EUR 460 million and an operating margin between 13% and 17%. 

Looking ahead to 2025, Axway aims to achieve revenue of approximately EUR 700 million, with an operating margin between 14% and 16%, reflecting anticipated cost savings of about EUR 15 million. By 2027, the company expects revenue to exceed EUR 750 million and aims for an operating margin above 17%. The target for 2028 is an operating margin of around 20%. 

Axway's net debt to EBITDA ratio is projected to exceed 2.5x by the end of 2024 but is expected to decrease to below 2.0x by the end of 2025, and further to below 1.0x by 2027.