PE firm Vista to acquire British software specialist Misys

With its main rivals CVC Capital Partners and ValueAct Capital pulling out, US buy-out giant Vista Equity Partners is set to acquire British banking software specialist Misys.

Last month, Misys had agreed to a £1.27-billion ($2 billion) takeover deal with Vista, but ValueAct - the largest Misys shareholder, teamed up with CVC Capital and said that they were in talks about a joint cash bid.

However, the ValueAct-CVC Capital team, yesterday walked away from the deal, saying, "CVC and ValueAct confirm that they do not intend to proceed with an offer for Misys."

But the deal may not yet be sealed for Vista since Swiss software firm Temenos, which last month walked away from a potential £2-billion all-share merger with Misys, yesterday said that it retains the right to restart a bidding process.

Tom Kilroy, acting CEO, Misys had said last month that Vista's cash proposal is the ''best deal'' for the company and its shareholders. Misys shareholders are scheduled to vote on the proposed Vista deal on 24 April.

Misys said that investors holding around 22 per cent stake, including Schroder and Threadneedle, had backed the Vista offer.