Banking software company Misys has accepted a £1.3 billion takeover bid from private equity firm Vista Equity Partners.
Misys’s board of directors "believe[s] that the offer from Vista of 350 pence per share is an attractive value for Misys Shareholders and represents a valuation that captures the organic growth potential of the Misys business whilst providing certainty, in cash, to shareholders," said chairman Sir James Crosby in a statement.
The offer is now subject to approval from Misys’ shareholders.
The news came as Misys reported a 12% year-on-year revenue decline for its most recent financial quarter. "Customers delayed, but did not cancel, software licence purchase decisions during February as they awaited the outcome of the discussions on the future ownership of Misys," the company revealed.
Last September, Vista Equity Partners acquired a financial trading application called Kondor+ from Thomson Reuters. The firm said today that it would combine Misys with Turaz, the subsidary that sells Kondor+. The combined company will have over 1,700 customers around the world.
"With the combination of Misys and Turaz, we are creating the global leader in core banking, treasury management, capital markets and enterprise risk management software headquartered in the global banking centre, London," said the firm’s chairman, Robert Smith.
However, Misys owns a product named Summit FT that competes directly with Kondor+.