- An IPO could value company at $5 billion, including debt
- JPMorgan also said to be named to advise on potential listing
Private equity firm Vista Equity Partners has picked advisers including Goldman Sachs Group Inc. and Bank of America Corp. for a potential initial public offering of U.K. financial software provider Misys, said people familiar with the matter.
JPMorgan Chase & Co. is also working on the listing, which could value the business at about $5 billion, including debt, the people said, asking not to be named as the details aren’t public. That amount could rise to $8 billion if the company is valued at the top end of its peer group, one of the people said. No final decisions have been made, and Vista could also decide to sell the business, they said.
Representatives for Vista, Bank of America, Goldman Sachs and JPMorgan declined to comment.
Software company IPOs, which make up just 4 percent of global listings so far this year, are outperforming other industries, according to data compiled by Bloomberg. Businesses in the sector that have started trading this year have gained about 64 percent from the offer to date. That’s compared to a 14 percent gain for all IPOs, according to the data.
Shares of venture capital-backed Twilio Inc., which develops mobile and web applications, rose as much as 73 percent on their first day of trading in June. Success stories may lure owners of technology companies to the public markets after rising private valuations, supported by readily available capital, caused many to be hesitant to list.
Misys has an annual earnings before interest, taxes, depreciation and amortization of about 300 million pounds ($396 million), people familiar with the business said last month. Vista agreed to buy Misys in 2012 for 1.3 billion pounds in a deal that took the company private.