Misys is to acquire DBS Management, a software provider to independent financial advisers and operator of the AssureWeb portal linking insurers and intermediaries in the UK personal finance market. The £75 million deal will create one of the leading IFA network businesses in the UK.
Misys says it will pay 150 pence per share for DBS, representing a premium of about 170 per cent against the target's share price, which has significantly underperformed the market.
Commenting on the Offer, Kevin Lomax, chairman of Misys, says the acqusition demonstrates Misys' commitment to the IFA distribution channel, and will enable the company to benefit from economies of scale in it e-commerce-related expenditure.
DBS spent £9.1 million in development costs on its AssureWeb information and transaction portal in the year to March 2001. AssureWeb claims 14,000 registered users. Misys is currently developing m-link, a B2B portal connecting life insurers to the IFA community for the electronic exchange of quotations, new business and policy servicing.
Misys also took the opportunity to update its trading results for the year, warning of a below par profit take for the banking division, which sells software services to banks worldwide. "While activity levels in banking remain good, there is evidence that larger orders are taking longer to close, and growth and order intake were consequently slower than expected in the busy year end period," the company warns. "As a result, operating profit for the banking division is expected to be slightly below market expectations."
The results across the group are expected to be "satisfactory".