Misys Said to Draw Private-Equity Interest Following Temenos
Misys Plc (MSY), the financial-software maker merging with Swiss competitor Temenos Group AG (TEMN), has attracted interest from buyout firms and would consider alternatives to that deal if they’re deemed better for shareholders, two people familiar with the matter said.
Misys hasn’t solicited offers from potential acquirers, said the people, who declined to be identified because the deliberations are private. Suitors have until March 6 to declare interest in London-based Misys, according to a Feb. 7 statement announcing the all-stock deal with Temenos. Misys rose as much as 3.9 percent in London trading today.
An alternative bidder may threaten Misys’s tie-up with Geneva-based Temenos, a deal that would create the largest vendor of banking software in the world. Misys agreed last week to the transaction, which would give its shareholders about 54 percent of the combined company.
Companies that sell financial software for businesses are proving attractive to private-equity firms as mounting banking regulations increase demand for up-to-date systems. In August Bain Capital agreed to buy a majority stake in MYOB Pty Ltd., an Australian provider of business software that had also attracted a bid from Sage Group Plc.
A spokesman for Misys declined to comment.
Terms of the Deal
Under the terms of the Temenos merger, the Swiss company’s shareholders will receive 4.1 Misys shares for every Temenos share they hold.
Misys was up 4.2 percent at 302.5 pence at 11:12 a.m., giving it a market value of 1.01 billion pounds ($1.6 billion). The stock has declined 7.3 percent since the Feb. 3 announcement of merger talks with Temenos.
Six months ago, Misys’s talks to sell itself to Fidelity National Information Services Inc. collapsed after the two failed to agree on price, a person with knowledge of the matter said then.
U.K. deals tend not to include breakup fees, typically included in U.S. transactions, meaning a company that terminates a deal to pursue a more convenient opportunity doesn’t necessarily incur extra costs.
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