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Misys, the British financial software developer, is competing against US private equity group Advent International to acquire DH Corp, a Canadian payments and lending technology company, according to people briefed about the negotiations.
Toronto-listed DH, which has a market value of about C$2.5bn, is expecting bids sometime this week, said those familiar with the situation, who also cautioned that there was no certainty of a deal being reached at the end of the sale process.
Misys’ interest in acquiring DH comes a day after the Financial Times reported that the company owned by Vista Equity Partners, an acquisitive US private equity group, is exploring a New York listing. The UK company was meant to list in London last year but pulled its £5.5bn float due to market uncertainty following Britain’s vote in June to leave the European Union.
Advent is aggressively pursuing DH in partnership with Canada Pension Plan Investment Board, Canada’s largest pension fund, said one person close to the situation.
The board of DH formed a special committee in December “to address expressions of interest from certain third parties to acquire DH”, and appointed Credit Suisse and Royal Bank of Canada to advise it.
Reuters reported CPP’s interest in January, saying that US private equity firms including TPG, Cerberus Capital Management and Thoma Bravo were also looking at DH.
Misys and Vista declined to comment. DH, Advent and CPPIB were not immediately reachable for comment.