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Software firm Misys gets bid approach

Software firm Misys gets bid approach
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First Published: Tue, Jun 21 2011. 04 13 PM IST
London: British financial software company Misys said it had received a bid approach, which the market has been expecting for some weeks, sending its shares up more than 8% on Tuesday.
The company is taking the approach seriously and is in talks with one bidder over sale of the whole company, said a source familiar with the matter.
Misys shares have risen sharply from from around 312 pence in early May as market speculation of bid interest swirled around the stock. The Financial Times said on Monday that rumours indicated the company had opened its books to a US-listed peer.
“The board of Misys Plc confirms that it has received a preliminary approach that may or may not lead to an offer being made for the company,” the company said in a short statement on Tuesday.
Misys shares were up 8.5% to 417.2 pence at 1014 GMT, valuing the company at around 1.4 billion pounds ($2.3 billion).
Misys, which competes with companies like Temenos , Fidelity National Information services , Fiserv and SunGard has clients including all of the world’s top 50 banks.
Jefferies said the bidder could be from the United States or India, with fair offer exceeding 5 pounds per share.
“US heavyweights like FIS and Sungard will be looking for an opportunity to internationalise their footprint, while Indian providers like Infosys and TCS will be looking for more onshore presence and brand,” said Jefferies analyst Milan Radia.
“Our view remains it’s going to be a competitive situation. Each camp has good reasons to be involved in this,” Radia said.
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First Published: Tue, Jun 21 2011. 04 13 PM IST
More Topics: Misys | Software | Share | Bid | Temenos |