Misys agrees $2billion takeover bid from buyout firm Vista

Mon Mar 19, 2012 9:29am EDT
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By Paul Sandle

LONDON (Reuters) - British banking software services company Misys MSY.L has agreed to a 1.27 billion-pound ($2 billion) takeover bid by Vista Equity Partners, after merger talks with Swiss rival Temenos (TEMN.S: Quote) collapsed last week.

Misys said on Monday it was backing a 350 pence-per-share cash offer from Vista, which will combine Misys with Kondor, the trade and risk management software firm which Vista bought last year from Thomson Reuters (TRI.TO: Quote).

However, shares in Misys were up 8.4 percent at 357 pence by 1300 GMT as some investors bet on a higher offer emerging.

Misys's biggest shareholder, U.S. activist investor ValueAct which holds a 21.5 percent stake, did not endorse the offer. Earlier this month ValueAct said it had teamed up with private equity group CVC Capital Partners to consider making a bid of its own for Misys "that provides a certainty of cash upon completion" in preference to the Temenos all-share proposal.

ValueAct and CVC said in a statement on Monday that they were still considering whether to make a joint cash bid for Misys and advised shareholders to take no immediate action.

Temenos, which could also come back into talks now a rival offer has been made, declined to comment on its intentions.

Misys and Temenos are enduring tough trading as their core bank customers, under pressure to cut costs, delay spending on major upgrades to their transactional systems. Misys says it has over 1,200 customers including the world's 50 biggest banks.

Alongside news of the deal, Misys issued a profit warning, saying revenue plunged 12 percent in its fiscal third quarter, resulting in a 3 percent drop for the year to date.   Continued...