Software firm backs £1.3bn takeover

A financial software firm that includes some of the world’s 50 biggest banks among its clients today agreed a £1.3 billion takeover by a US private equity firm.

Misys, which employs 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 as they awaited the outcome of discussions on the future ownership of the company.