Misys agrees to £1.3bn Magic Bidco takeover

A FINANCIAL software firm that includes the world’s top 50 banks among its clients yesterday agreed a £1.3 billion takeover by a US private equity firm.

Misys, which employs about 4,000 staff worldwide and was founded in the UK in 1979, has been bought by Magic Bidco, an investment vehicle owned by Vista Equity Partners, which plans to combine the company with Turaz, a provider of trade and risk management software.

The agreement comes after weeks of takeover noise around the group, which supplies software to financial services, including 1,200 banking customers, after a merger with Swiss rival Temenos fell through and its largest shareholder ValueAct considered a bid.

The deal was announced as Misys reported a 12 per cent fall in revenues to £89 million in the three months to 29 February as customers delayed software licence decisions to await the outcome of discussions on the future ownership of the company.

Chairman Sir James Crosby, former chief executive of HBOS, said the 350p-a-share deal, which is subject to shareholder and regulatory approval, offered “attractive value”. He said: “The independent Misys directors recognise the benefits Vista will bring to the Misys business through its experience in the enterprise software industry and its strong operational expertise.”