Misys Plc (MSY), a U.K. financial software company, continues to consider offers from Vista Equity Partners, ValueAct Capital and CVC Capital Partners Ltd. after merger talks with Switzerland’s Temenos Group AG (TEMN) ended.
Misys and Temenos on Feb. 3 said they were working on a merger that would create the largest vendor of banking software. “Despite extensive discussions, the parties were unable to agree final terms of a transaction,” Misys said in a statement today.
Last week ValueAct Capital, Misys’s largest shareholder and initially a backer of Temenos’s merger proposal, joined forces with buyout firm CVC Capital Partners Ltd. to work on a cash bid for the London-based company. Vista Equity Partners is also considering a separate offer. Misys said today it will continue talkS with the private equity companies.
Misys dropped as much as 1.8 percent to 335 pence in London and traded at that level as of 8:03 a.m., valuing the company at 1.12 billion pounds ($1.8 billion). Temenos dropped as much as 3.1 percent in Zurich.
Geneva-based Temenos, which initially had until March 6 to announce a firm intention to make an offer for Misys, last week had gained approval to defer the decision until April 2.
Temenos said today it still has the right to make an offer for Misys or participate in an offer if Misys’ board agrees or if a third party makes a firm bid. These are “standard conditions” for ending merger talks in the U.K., a Temenos spokesman said via phone today.
Misys has formed an independent committee of board directors to consider all offers.
Misys in February agreed to the Temenos proposal, which would have give its shareholders about 54 percent of the combined company. Previous talks to sell the business to Fidelity National Information Services Inc. last year collapsed when the two failed to agree on price, a person with knowledge of the matter said at the time.
Companies that sell financial software to businesses are proving attractive to private-equity firms as mounting banking regulations increase demand. In August, Bain Capital agreed to buy a majority stake in MYOB Pty Ltd., an Australian provider of business software that had also attracted a bid from Sage Group Plc.
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 1,300 banking customers.
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