The new company is owned by the departing five-man management team and by Primary Capital. The Royal Bank of Scotland provides the majority of the debt funding.

Under the deal, Rhyme Systems acquires Misys' integrated settlement system Fiscal and back office software Quasar, both of which have a strong following in the UK market.

Chris Potts, formerly CEO of Misys Asset Management Systems, becomes CEO of Rhyme Systems. Approximately 150 staff will transfer from Misys to the new company, which will have offices in London, Birmingham and Nantwich.

Potts says: "This transaction allows us to take Rhyme Systems into an exciting new era as an independent group, building on our achievements to date."

Misys Asset Management Systems retains its Apollo and Eagleye products which it says will be at the core of its strategy to build businesses in both the institutional and private wealth sectors of the market. The firm will continue to exist as a wholly-owned subsidiary of Misys with offices in London, Paris, Luxembourg, Nice and Birmingham.

The vendor has appointed Clive Pedder as its new CEO. Pedder was most recently president and CEO of wholesale banking systems firm MPCT Solutions.

The sell off follows the sale of Misys Securities Trading Systems' UK, Japan and Hong Kong businesses to Paris-based GL Trade ealier this month. Misys says the total consideration for the two deals is £25 million.

Together these transactions represent a decisive move by the firm to exit non-core businesses.

Ivan Martin, CEO of Misys banking and securities division, comments: "Over the past two years Misys Asset Management Systems has increasingly concentrated its activities on the front-end of the investment process. Our strategy is to focus on specific, growth-oriented market sectors, so this is where the majority of our research and development activity in asset management has been placed."