CVC Capital, ValueAct in takeover bid for Misys
06 March 2012
Shares of Misys soared by 7 per cent yesterday, after private-equity firms CVC Capital Partners and ValueAct Capital revealed they were in talks about a joint cash bid, rivalling two earlier bids already placed for the banking software firm.
CVC and ValueAct, Misys' largest shareholder with a 21.5-per cent stake, are planning to top the proposed £1.2-billion bid from US private equity group Vista Equity Partners and an all-share merger offer by Switzerland's Temenos (See: Vista Equity Partners to scupper Temenos-Misys merger with £1.2bn offer).
The battle for the British software firm comes after Misys and Fidelity National Information Services called off merger talks following disagreement over the 450-460 pence a share or £1.4-billion offer made by the US financial data company.
The CVC and ValueAct announcement comes just weeks after Misys started merger talks with Temenos and received a second offer worth £1.2 billion from Vista.
CVC and ValueAct have until April 2 to announce a firm bid, while Vista has until 19 March.
Jeffrey Ubben, founder and chief executive of ValueAct, which originally backed the Temenos offer, said, "The proposed Misys and Temenos all-share merger has strategic logic, but we have decided to evaluate whether we can make an alternative proposal that provides the certainty of cash upon completion."