Will Misys Shareholder Best Vista in Bidding War?

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The board of British banking software services company Misys approved a 1.27 billion-pound ($2 billion) takeover by Vista Equity Partners on Monday, though the possibility of a counteroffer was still alive.

Private equity firm Vista announced it would combine Misys with Kondor, a trade and risk management software firm. It also said it would offer shareholders 350 pence for each of their Misys shares.

“Through our deep experience with enterprise software companies, we believe that Misys has an attractive future that we plan to invest in and grow,” Vista chief executive, Robert F. Smith, said in a statement. “With the combination of Misys and Turaz, we are creating the global leader in core banking, treasury management, capital markets and enterprise risk management software.”

The Vista announcement comes after merger talks between Misys and Swiss rival Temenos collapsed last week. Misys’s largest shareholder, ValueAct, did not endorse the offer, saying it was still considering making a rival joint offer of its own along with private equity group CVC Capital Partners.

ValueAct currently holds a 21.5 percent stake in Misys. “CVC and ValueAct continue to consider their options in respect of Misys, including a possible recommended joint cash offer for the company and urge Misys shareholders to take no action at this time,” it said in a statement.

“We think this is likely to be the best deal available to Misys and its stakeholders. If any other company made an offer we would of course talk to them, but we think it is unlikely this deal will be bettered,” acting Misys chief executive Tom Kilroy said.

To contact the reporter on this story: Aabha Rathee at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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