ValueAct, London-based Misys’s largest shareholder, joined forces with buyout firm CVC Capital after formerly expressing “strong support” for a merger of Misys with Temenos Group AG (TEMN). Misys said in a separate statement today it is still in talks with both Temenos and rival bidder Vista Equity Partners and has formed an independent committee of board directors to consider all offers.
“The proposed Misys and Temenos all share merger has strategic logic but after further consideration we have decided to evaluate whether we can make an alternative proposal that provides the certainty of cash upon completion,” ValueAct founder Jeffrey Ubben said in a statement.
Misys and Geneva-based Temenos on Feb. 3 said they started talks about a merger that would create the largest vendor of banking software. On Feb. 20, Misys said it received a rival bid from Vista Equity Partners. Misys today rose as much as 7.2 percent in London trading, valuing the company at 1.1 billion pounds ($1.7 billion). Temenos has until tomorrow afternoon to announce a firm intention to make an offer.
Companies that sell financial software to businesses are proving attractive to private-equity firms as mounting banking regulations increase demand. In August, Bain Capital agreed to buy a majority stake in MYOB Pty Ltd., an Australian provider of business software that also attracted a bid from Sage Group Plc.
Misys agreed to the Temenos proposal last month, which would give the shareholders of the British business about 54 percent of the combined company. Previous talks to sell the business to Fidelity National Information Services Inc. (FIS) collapsed last year when the two failed to agree on price, a person with knowledge of the matter said at the time.
Temenos said Feb. 21 that talks with Misys were ongoing. Temenos fell as much as 4.8 percent to 16.95 Swiss francs today, and traded at 17.3 francs at 12:45 p.m. in Zurich.
To contact the reporter on this story: Jonathan Browning in London at email@example.com