Shares in UK banking-to-healthcare software firm Misys plummeted over 20% after the vendor said that chief executive Kevin Lomax was leaving the firm following the breakdown of takeover talks.
Misys shares sunk 21%, or 48.25 pence, to 178.00 pence in morning trading after the company said it had not received any offer for the business and it "had terminated the offer process with immediate effect".
In the statement Misys says Lomax, who founded the company in 1979, decided to step down following talks with chairman Dominic Cadbury.
Lomax was leading a consortium of Misys' directors to undertake a management buyout of the firm, but has failed to table a formal offer. Lomax is rumoured to have proposed offering 255 pence a share for the business, but according to reports his backers, private equity groups Permira and General Atlantic, would not support an offer above 226.25 pence.
Misys says an independent committee, which was originally established to evaluate any offers for the group, has "for some time been in discussions with potential external candidates for the role of group chief executive". An announcement is expected be made in the middle of October. In the meantime, Cadbury will act as interim CEO.
As well as announcing Lomax's departure Misys has released a trading statement which had been delayed by the bid process. The vendor says it expects adjusted EPS for the current financial year to be lower than last year due to higher US interest rates and losses from the purchase of PayerPath and other assets.
The vendor says its banking and Sesame divisions "have traded in line with our expectations and ahead of last year during the first three months of the year", but it's healthcare division "has been held back significantly as a result of increasing pressure in competing for smaller practices".