Unisys partners with Thought Machine for advanced banking tech

Published 02/04/2025, 14:30
Unisys partners with Thought Machine for advanced banking tech

BLUE BELL, Pa. - Unisys Corporation (NYSE: UIS), a global technology solutions company with annual revenue of $2 billion and a market capitalization of $315 million, has entered into a partnership with Thought Machine, a provider of cloud-native banking technology, to deliver a comprehensive banking solution aimed at modernizing branch and core banking systems. The collaboration will leverage Unisys’s advanced branch technology and Thought Machine’s core banking platform, Vault Core, to offer banks a way to improve operations, enhance security, and increase client satisfaction.

This partnership is poised to provide the banking industry with an integrated solution that combines reliable transaction processing with the flexibility to conduct banking services outside traditional branch locations. Utilizing artificial intelligence (AI) and advanced security features, including biometrics, the solution is designed to address the evolving requirements of the financial sector. According to InvestingPro analysis, Unisys is currently trading below its Fair Value, suggesting potential upside for investors interested in the company’s digital transformation initiatives.

Sean Tinney, vice president of solution management for Enterprise Computing Solutions at Unisys, emphasized the transformative impact of the integration with Vault Core, describing it as "branch banking 2.0." He highlighted the speed, intelligence, and security improvements that AI and advanced security technology bring to the table, enabling banks to stay ahead of industry changes and manage sensitive transactions with enhanced security.

The initiative is expected to facilitate the development of "smart branches" that prioritize secure, efficient, and customer-focused services. The collaboration marks a step forward in Unisys’s long history of providing innovative solutions to its clients, building on more than 150 years of experience in the technology sector. While the company reported a net loss in the last twelve months, InvestingPro analysts forecast a return to profitability in 2025, with projected earnings per share of $0.45. For deeper insights into Unisys’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Thought Machine’s Vault Core platform is recognized for its cloud-native core banking and payments technology and is trusted by several high-profile banks and financial institutions around the globe. The company boasts a global presence, with teams in London, New York, Singapore, and Sydney, and has secured over $500 million in funding. Trading at an EV/EBITDA multiple of just 2.6x, Unisys presents an attractive valuation metric compared to industry peers.

The announcement is based on a press release statement and introduces a strategic alliance that could reshape the way banks approach technology and customer service in a digital-first world.

In other recent news, Unisys Corporation reported its fourth-quarter 2024 earnings, showcasing an earnings per share (EPS) of $0.41, significantly surpassing the forecasted $0.25. However, the company’s revenue slightly missed projections, coming in at $545 million against an expected $546.33 million. Moody’s Ratings downgraded Unisys’ corporate family rating to B2 from B1, citing little or no revenue growth and a high debt to EBITDA ratio, but revised the outlook to stable due to expected gross margin improvements. Canaccord Genuity adjusted its price target for Unisys to $6.50 from $7.00, maintaining a Hold rating, acknowledging the company’s growth initiatives but expressing caution over its legacy services. Additionally, Unisys announced a leadership change with Chris Arrasmith appointed as Executive Vice President and Chief Operating Officer, effective April 1, 2025. This transition aligns with Michael Thomson’s move to Chief Executive Officer and President. Despite some challenges, Unisys continues to focus on strategic investments in AI and digital solutions, aiming for modest revenue growth and improved cash flow in 2025.

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