Financial software developer Misys has announced that it has reached agreement on the terms of a recommended 350p-per-share cash offer by Magic Bidco Limited, an investment vehicle indirectly owned by Vista Funds.
This follows last week's news that the discussions with Temenos Group, long though of as a natural partner of Misys, had been terminated.
Bidco's offer values Misys at £1,266.8m and represents a 32.1% premium to its previous three-month average closing price of 265p at February 2nd, the day before it announced that it was in talks with Temenos. Shares closed that day at 326p, 7.5% lower than the offer price.
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"The independent Misys directors believe that the offer from Vista of 350 pence per share is an attractive value for Misys shareholders and represents a valuation that captures the organic growth potential of the Misys business whilst providing certainty, in cash, to shareholders," said Chairman James Crosby.
Misys also announced this morning that revenue in nine months ended February 29th had declined by 3% year-on-year. Revenue in the third quarter alone was down 12% as customers delayed ("but did not cancel") software licence purchase decisions during February as they awaited the outcome of the discussions on the future ownership of the company.
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