MISYS’S AGREEMENT to be acquired at Europe’s cheapest valuation for a software takeover is leaving the door open for rival bidders.
Vista Equity Partners said this week it will purchase Misys for £1.3 billion, valuing the British financial software maker at 13 times earnings before interest, taxes, depreciation and amortisation. That’s the least expensive on record for a software takeover in Europe greater than $1 billion.
At 21 per cent more than Misys’ 20-day trading average before merger talks with Temenos Group were disclosed last month, Vista’s bid is also half the industry’s average premium, the data show.
Misys is seeking to sell more products that handle risk management, derivatives trading and lending. While Misys said the private equity firm’s proposal is likely the “best deal”, the stock closed yesterday above the bid of 350 pence a share, indicating some traders project a richer offer.
Temenos, which has ended talks over an all-share merger, can still make a counteroffer and Misys’ biggest investor ValueAct Capital, which teamed up with CVC Capital Partners, is weighing a possible joint bid. – (Bloomberg)
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