Misys and Temenos in merger talks
03 February 2012 | 9749 views | 0
UK core banking vendor Misys has confirmed that it has begun talks with Swiss rival Temenos about a possible all share merger.
In a statement, Misys - which has long been the subject of market rumours - confirms "preliminary discussions" with Temenos about a "possible strategic combination".
"Discussions are continuing and there can be no certainty that a transaction will ultimately take place, nor as to the terms on which any transaction might be constituted," cautions the statement.
In its own statement, Temenos says it is "constantly evaluating its strategic options" and that "no decisions have been taken".
Having seen its shares rise steeply in recent weeks, Misys' price was unmoved by the latest news, down 0.1% to 325.4 pence per share in morning trading. In contrast, Temenos shares were up 9.01% to CHF18.75.
Misys has long been touted as a merger or takeover target, with a £1.4 billion cash offer from US giant FIS falling through in August. Last week, the UK vendor admitted it had experienced a 'challenging' first six months trading, thanks to a slowdown in sales in Western Europe.