28 May 2017
Find out more

Patsystems receives takeover approach as MF Global fallout continues

28 November 2011  |  6221 views  |  0 Financial Graph on screen

Hit hard by the collapse of its largest customer, MF Global, troubled UK screen-dealing software house Patsystems has been approached about a takeover by ION Trading.

ION, which is already the vendor's largest shareholder, has floated the possibility of a cash offer valuing each Patsystems share at 14 pence.

Shares in Patsystems closed on Friday at 9.63 pence but have soared 32% in morning trading on the latest news to 12.75 pence.

The Patsystems board says it "acknowledges the Company's strong commercial fit with ION, their greater financial stability, as well as the potential benefits to staff, customers and product development. The Board will therefore carefully assess the merits of the proposed combination."

ION - which earlier this year acquired Wall Street Systems - now has until 26 December to either announce a firm intention to make an offer or not.

Meanwhile, the vendor has completed a preliminary assessment of the implications of MF Global's collapse. Patsystems says it is owed about £900,000 by the US brokerage and, although it is talking to trustees and administrators, it "cannot be certain of the extent to which these monies will be fully recovered".

In addition, although it hopes that some of MF Global's customer base will migrate to other Patsystems clients, the firms still expects profits for the year to be hit by around £500,000.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MF Global collapse hits Patsystems

MF Global collapse hits Patsystems

01 November 2011  |  7750 views  |  0 comments
Exchange spending cutbacks hit Patsystems

Exchange spending cutbacks hit Patsystems

03 October 2011  |  4840 views  |  0 comments
CVC to buy Convergex majority stake; Patsystems acquiring Mixit

CVC to buy Convergex majority stake; Patsystems acquiring Mixit

21 July 2011  |  7225 views  |  0 comments
Patsystems beats expectations

Patsystems beats expectations

10 February 2009  |  3601 views  |  0 comments
Patsystems share price soars on ION Trading rumours

Patsystems share price soars on ION Trading rumours

28 July 2008  |  9976 views  |  0 comments

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.response.ncr.comvisit www.events.sap.comVisit www.capgemini.com/worldreports

Top topics

Most viewed Most shared
BBVA launches Open API marketplaceBBVA launches Open API marketplace
13747 views comments | 53 tweets | 81 linkedin
Bank/fintech collaboration can take transaction banking to new heightsBank/fintech collaboration can take transa...
7948 views comments | 12 tweets | 24 linkedin
R3 raises $107mR3 raises $107m
7342 views comments | 16 tweets | 16 linkedin
TransferWise launches multi-currency business bank accountsTransferWise launches multi-currency busin...
7141 views comments | 12 tweets | 21 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job