Financial technology provider Misys has agreed to be bought by private equity firm Vista Equity Partners for 1.27 billion after talks of a merger with rival Temenos broke down earlier this month.
The acquisition represents a 32.1% premium over the average closing price of Misys shares in the three-month period to February 2. The deal will be funded by equity financing provided by Vista Funds as well as debt funding from third-party providers.
The deal goes on to Misys shareholders for approval. Barclays and J.P. Morgan, which served as advisers to Misys on the deal, say the acquisition would be fair and reasonable.
Vista is delighted to announce todays transaction, together with the Independent Misys Directors and the Misys management team, says Robert F. Smith, chairman and CEO of Vista Equity Partners. Misys is a leading provider of software to the financial services industry with exceptional employees, high quality products and impressive clients. Through our deep experience with enterprise software companies, we believe that Misys has an attractive future that we plan to invest in and grow. With the combination of Misys and Turaz, one of our existing portfolio companies, we are creating the global leader in core banking, treasury management, capital markets and enterprise risk management software headquartered in the global banking centre, London.
Misys offers a number of technology solutions to the banking and capital markets industries, including confirmation matching services, risk management services and business intelligence services.
The independent Misys directors recognize the benefits that Vista will bring to the Misys business through its experience in the enterprise software industry and its strong operational expertise, says Sir James Crosby, chairman of Misys. The dndependent Misys directors believe that Vista recognizes the skills and experience of the existing management and employees of Misys and welcomes Vistas stated intention that the management of Misys will continue to play a leading role in the future of Misys under their ownership.
(CG)