UK Software Firm Misys Gets New Interest from Vista
Misys' agreement to merge with rival Tenemos could be scrapped by a counteroffer from Vista Equity Partners.
Misys says it has recveived a non-binding proposal from Vista to acquire all of its outstanding shares in cash, but there is no guarantee a deal will be executed. Private equity firm iVista is reportedly offering 1.2 billion British pound sterling ($1.9 billion) for the UK based financial software giant and has to come up with some solid deal by March 16.
Misys recently announced it agreed to merge with Tenemos to create the world's largest vendor of banking software. That deal would give Misys shareholders 54 percent of the combined company while shareholders of Tenemos would get rest based on 4.1 shares of Misys for every share of Tenemos they held.
Misys makes softwre for cash, wealth and risk management, over-the-counter derivatives trading and post trade processing; it has over 1,300 banking customers. About six months ago Misys' talks to sell itself to Fidelity Information Services failed to achieve any agreement.
Misys' biggest shareholder ValueAct Capital has given "strong support" for the deal with Tenemos but based on Misys' stock price, other investors don't seem quite as impressed as they don't see the synergies. A deal with Vista is being viewed as a better long-term value. Vista, which has offices in Chicago and San Francisco invests in software and technology firms. It recently bought the risk management business of Thomson Reuters. Misys' price per share which fell by about 14 percent since the details of the deal with Tenemos was discussed last week rose 8.4 percent to close at 335 pence a share midday on Monday.
Written by Chris Kentouris, Editor-in-chief (Chris can be contacted through Chris.Kentouris@hotmail.com)
