Bloomberg News

Fidelity National Said to Be in Discussions to Purchase Misys

June 23, 2011

June 23 (Bloomberg) -- Fidelity National Information Services Inc., a Florida-based provider of banking and payment technology, is in talks to buy Misys Plc, according to two people with knowledge of the matter.

An agreement may be reached in coming weeks, said the people, who declined to be identified because the discussions are private. Misys, a U.K. provider of software for the financial industry with a market value of 1.39 billion pounds ($2.2 billion), said June 21 that it received a preliminary takeover approach.

Fidelity National is aiming to expand outside the U.S., where it derives more than 80 percent of its revenue. First- quarter revenue climbed 12 percent to $1.38 billion, driven by a 49 percent sales increase in the International Solutions unit, the Jacksonville, Florida-based firm said in a May 3 statement.

“International activity continues to be a key growth initiative, led by expanded product capabilities in Australia and growth in Asia and Brazil,” Tien-tsin Huang, an analyst at JPMorgan Chase & Co., said in a research note last month.

Nicola Hamilton, a spokeswoman for London-based Misys, declined to comment. Marcia Danzeisen, a spokeswoman for Fidelity National, didn’t respond to phone and e-mail messages seeking comment.

Misys makes software for cash, wealth and risk management as well as for syndicated lending, over-the-counter derivatives trading and post-trade processing. It has more than 1,200 customers including Credit Agricole CIB, Nordea Bank AB and the financing arm of PetroChina Co. Ltd., according to its website.

$15 Billion Buyout

U.S. software vendors such as Fidelity National and Fiserv Inc. “will be keen to internationalize their businesses,” Milan Radia, an analyst at Jefferies Group Inc. in London, said June 21.

Last Year, Blackstone Group LP, Thomas H. Lee Partners LP and TPG Capital dropped a $15 billion buyout bid for Fidelity National after the company sought a higher price.

Misys fell 2 percent to close at 410.4 pence yesterday in London after surging 9 percent a day earlier on the news that it had been approached about a takeover. Fidelity National dropped 0.6 percent to $31.10 on the New York Stock Exchange yesterday.

The Financial Times identified Fidelity National as the bidder in an earlier report.

--With assistance from Ragnhild Kjetland in Frankfurt and Blanche Gatt in London. Editors: Peter Eichenbaum, Elizabeth Wollman.

To contact the reporters on this story: Serena Saitto in New York at ssaitto@bloomberg.net; Lindsey Rupp in New York at Lrupp1@bloomberg.net

To contact the editors responsible for this story: Jennifer Sondag at jsondag@bloomberg.net; David Scheer at dscheer@bloomberg.net


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