Temenos has completed the independent examination following the release of a report by Hindenburg Research in February. The examination was conducted by a Special Committee formed by Temenos’ Board of Directors led by the Non-Executive Chairman, Thibault de Tersant. The Special Committee was assisted by Schellenberg Wittmer, Sullivan & Cromwell, and forensic accountants from Alvarez & Marsal Switzerland.

The market response was positive. On release of Temenos’ report, its share price rose by 20%. On the other hand, the share price remains down by almost 60% since peaking in May 2019.

The Independent Examiners were granted unrestricted access to company executives, personnel, records, communications, and all relevant documents. Their review analysed the allegations made by Hindenburg Research. This includes Temenos’ compliance with applicable accounting standards and regulations, its strategic partnerships, its license renewal practices, the success of its products, its client relationships, and stock buybacks.

Their findings are based on a review of more than 300,000 documents and electronic communications. The review incorporated interviews of 17 current and former Temenos employees, including senior management. In total, over 150 attorney and forensic accounting professionals have spent over 22,000 hours investigating the allegations.

‘Hindenburg made incorrect and misleading allegations’

Based on this thorough independent external review, the Special Committee has determined that Hindenburg Research made incorrect and misleading allegations about Temenos and its accounting, products and customer relationships. Moreover, it said it presented purported facts about Temenos in a distorted manner or out of context. The findings of the independent examination have been presented to the full board of Temenos.

Neither the Board, nor its audit committee consider that the findings have any impact on Temenos’ previously published financial statements. Nor does it change their belief that those financial statements fairly represent Temenos’ financial position, results of operations, and cash flows. In addition, Temenos’s annual report is published today, as previously announced.

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Robust financial controls, strong governance

Thibault de Tersant, Chairman of Temenos, said: “I am pleased that the Independent Examiners have completed their review with the full cooperation and transparency from employees across the business. The report has found that Hindenburg’s Research’s allegations were inaccurate and misleading. It clearly reinforces the Board’s view that Temenos is running a sound business. It offers best in class products and has robust financial controls and strong governance oversight. Temenos remains fully focused on servicing its clients and building relationships with its partners. The Board is confident that Temenos’ strategic plan and critical mass will allow it to continue to lead this market.”