Vista Equity Partners to acquire financial technology specialist DH Corp in a $3.6-bn deal
14 March 2017
US private equity firm Vista Equity Partners today struck a deal to acquire Canada's financial technology specialist DH Corp in a deal valued at C$4.8 billion ($3.6 billion).
Under the terms of the deal, Vista, which specialises in financing and backing software and technology-enabled startup businesses, has offered to pay $25.50 in cash for each DH Corp share, a premium of 11 per cent to the stock's Friday close.
It would also assume DH Corp's debt, taking the total deal value to $4.8-billion.
Post closing, Vista will merge DH Corp with Misys, a British software company focused on the global banking industry.
''We are thrilled by the prospect of combining these two leaders in the fintech industry,'' said Brian Sheth, co-founder and president of Vista Equity Partners, in a joint statement with senior executives from DH Corp and Misys.
''After a comprehensive review of strategic alternatives, the special committee of independent directors and our board have unanimously concluded that this agreement is in the best interests of the company and our stakeholders,'' DH Corp chairman, Paul Damp said in a statement.
Founded in 1875 as Davis + Henderson, Toronto-based DH Corp, started with printed cheques for all the major banks in Canada and later diversified into developing technology and services for the banking industry.
It grew through acquisitions, including buying payment-technology company Fundtech Ltd in 2015 for $1.25 billion.
It employs more than 5,500 people worldwide, has more than 8,000 banks as its clients, including specialty lenders, credit unions, governments and corporations, and has annual revenue of almost C$1.7 billion.