A US private equity group has made a rival £1.2bn offer for Misys, the banking software company which this month agreed a merger deal with Switzerland’s Temenos.
Vista Equity Partners is putting forward an indicative offer of about 360p for every Misys share, a 16 per cent premium over Friday’s closing price of 309.6p, people close to the deal said on Monday.
The offer, which was first reported on FT.com, is considerably lower than the £1.4bn offer Misys is thought to have received from Fidelity National Information Services, the US banking technology company, last summer.
However, some Misys shareholders may find it preferable to the proposed combination with Temenos, as the synergies from that deal have been unclear, and it could take shareholders a long time to see a return.
Value Act, Misys’s largest shareholder, has declared its support for the Temenos deal but other shareholders are still considering their options.
Misys provides banking software systems to around 1,200 financial services companies, providing them with the technology that helps them run everything from current accounts to capital markets trading.
Vista recently completed the purchase of Kondor, Thomson Reuters’ trading and risk management business, which could be combined with Misys to create synergies. A combined Misys-Kondor would control around half the global market for treasury and capital markets software, and Misys itself was one of the companies considering buying the Kondor business when it went on sale last summer.
Vista will be under pressure to find a new management team for Misys, however, as Mike Lawrie, the chief executive, has already announced plans to take on a new role at Computer Sciences Corporation. Under the Temenos deal, the key management roles would have been filled by Guy DuBois, chief executive of Temenos, and Andreas Andreades, the Swiss company’s chairman.
Analysts said that Temenos may try to improve its deal by offering Misys shareholders cash, and that a final price for the UK software company could be around 400p per share, the same price Fidelity was offering last year.
“Around 400p feels like the right price for Misys. It resonates with the Fidelity bid last summer and represents a sensible valuation of the different parts of the business,” said Milan Radia, analyst at Jefferies.
Other private equity groups are also considering a bid for Misys.
The UK-based software maker confirmed the approach from Vista, saying it had received an approach “consisting of a non-binding indicative proposal to acquire the entire outstanding share capital of Misys for cash that may or may not lead to an offer being made.”
Vista must make a firm offer by the end of trading on March 19. Shares in Misys closed up 6.6 per cent at 330.1p.