July 20 (Bloomberg) -- Misys Plc rose as much as 9.1 percent in London trading after people with direct knowledge of the situation said the U.K. software maker is nearing an accord to be bought by Fidelity National Information Services Inc.
Misys’s board was to vote on Fidelity National’s offer yesterday and may announce a deal this week if it accepts the proposal, said one of the people, who declined to be identified because the talks are private. Fidelity National, a provider of banking and payment technology, said last month it made a “preliminary approach regarding a possible cash offer for Misys.”
Misys climbed as much as 34.7 pence to 416.1 pence, the biggest gain in a month, and traded at 414.7 pence as of 11:10 a.m., giving the company a market value of 1.4 billion pounds ($2.3 billion). Jacksonville, Florida-based Fidelity National advanced 2.7 percent to $29.78 in New York trading yesterday.
“Last week, fear had replaced greed, with capital markets looking dreadful, no news on a deal” and banking software supplier Temenos Group AG cutting its forecast, said George O’Connor, an analyst at Panmure Gordon & Co. in London with a “hold” recommendation on Misys shares. “Now people are coming back and say ‘Wait, we don’t want to be out.’”
Phil Branston, a spokesman for Misys, declined to comment. Marcia Danzeisen, a spokeswoman for Fidelity National, didn’t return a call seeking comment.
The London-based provider of software for the financial industry would help Fidelity National reduce its reliance on the U.S., where it derives more than 80 percent of revenue.
Misys makes software for cash, wealth and risk management as well as for syndicated lending, over-the-counter derivatives trading and post-trade processing. It has more than 1,200 banking customers in 12 countries, according to its website.
To contact the editor responsible for this story: Jennifer Sondag at firstname.lastname@example.org