Having fulfilled its role as M&A baitware….
GENEVA, Switzerland – 12 March 2012 – Further to the announcement by Temenos and Misys on 7 February 2012 that the parties were in discussions regarding a possible all share merger, Temenos today announces that no agreement has been reached on the final terms of a transaction. Accordingly, Temenos confirms that discussions between the two parties have now been terminated. Read more
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, says the FT, citing people close to the deal. 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. The offer 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.
“Thank you for depositing a $3bn merger rumour. An RNS will be credited to our investors in 24 hours.”
As the FT wrote on Thursday morning … Read more
First BSkyB, then Laird and now Misys.
Breaking pre-market news on Thursday,
- Lloyds Banking Group announces half year loss following PPI hit; maintains guidance — statement. Read more
FIS Global, the US listed payment services provider, has made the preliminary bid for UK software company Misys, according to people familiar with the situation, reports the FT. Misys, which provides software for banks, said on Tuesday that it had received a preliminary bid approach, following recent speculation, and while it declined to name the bidder, its share price rose nearly 9 per cent giving it a market value of $1.4bn. Talks over the possible offer – which would be for the whole of the business – are progressing and could be resolved within a month. However, the terms of the US provider’s bid are still unclear and Misys warned on Tuesday that the approach “may or may not lead to an offer being made”. FIS has lined up Bank of America Merrill Lynch and Deutsche Bank to advise it, while Misys is being advised by Barclays Capital and JPMorgan, according to the people.
Shares in Misys rose nearly 9% on Tuesday after the UK software company confirmed it had received a preliminary bid approach, giving it a market value of $1.4bn, reports the FT. A deal would follow the $1.3bn sale of Misys’s Allscripts healthcare business last year, and complete a five-year turnround of the business by Mike Lawrie, chief executive. Misys, which provides software for banks, said the approach “may or may not lead to an offer being made”. It did not identify the potential bidder but a deal could be struck within a month, said people familiar with the situation. Analysts speculated the most probable bidder was a US group, with Sungard, FIS Global and Fiserv all potential candidates. Indian IT services companies such as Infosys and HCL are also possibilities as is Swiss-based Temenos, Misys’ closest rival in banking software. An offer for the company could reach 500p a share, implying a £1.8bn value, said analysts.
Another day and another Misys bid rumour.
This time it’s talk of a 425p a share bid for the company, which provides software, systems and financial services to big banks, from a US rival. Read more
Breaking pre-market news on Tuesday,
- UK still intends to refer News Corp/BSkyB merger to Competition Commission, but will consider remedies from parties — statement. Read more
Breaking pre-market news on Thursday,
- Simon Property Group welcomes decision by Capital Shopping Centres to delay EGM — statement. Read more
Breaking pre-market news on Friday,
- Bank of Ireland sees underlying operating profit down 35-40 per cent on 2009 — statement. Read more
The sale of Misys’s majority stake in Allscripts is a fabulous return for two years’ work, according to the FT. Misys bought the 54.5 per cent stake in the US healthcare software business in 2008 for $330m plus the value of its own ailing related business – estimated to be worth about $100m – which were folded into the combined entity. As of Wednesday, Misys expects to sell most of this stake for $1.3bn in cash, as Allscripts merges with Eclipsys to create one of the largest US healthcare software ops.
Shares in Misys have soared on Wednesday morning:
Breaking pre-market news on Wednesday,
- Misys to sell majority of its controlling interest in Allscripts; to return proceeds of £800m to shareholders – statement. Read more
The latest on Friday,
- Consortium of private equity firms and a Chinese firm are expected to bid for Rio Tinto minerals units within weeks – Reuters report. Read more
ValueAct Capital, the activist investment fund, is a familiar warrior on the US corporate battlefield, less so in the UK. But for the past year and a bit, it has been gradually increasing its presence at Misys, the British software group that is recovering following a debilitating failed buy-out attempt by its founder in 2006.
Mike Lawrie, appointed Misys chief executive after that bid disintegrated, is a former ValueAct executive. The fund owns 19.4 per cent – a stake it started building after Mr Lawrie took the helm – and its founder, Jeff Ubben, sits on the Misys board. Read more
They say a picture (well, in this case a graphic and stats from Datastream) paints a thousands words.
So here’s the background on Misys’ new partner, Allscripts Heathcare Solutions, with which Misys is pooling its healthcare division. Read more
Brave? Reckless? Either way, software group Misys ignored the chilly market weather on Tuesday, raising £75m in a placing to help fund the long-rumoured merger of its health services division with Allscripts Healthcare Solutions of the US.
JPMorgan Cazenove were notionally looking for buyers of 42.8m new Misys shares at 175p apiece – a huge premium to the market price of Misys, sitting at 141p. Read more
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