Temenos walks away from Misys merger

Temenos walks away from Misys merger

Swiss core banking vendor Temenos has pulled out of merger talks with Misys in the face of competition from two rival bidders for its British competitor.

In early February Temenos and Misys agreed terms on an all-share merger deal but the plans received a lukewarm reception from the markets.

Later that month Vista Equity Partners entered the fray with an approach for Misys believed to be worth around £1.2 billion.

This was followed by a joint approach from CVC Capital Partners and Misys' largest shareholder, ValueAct Capital, which had previously given its support to the Temenos tie-up.

Despite reiterating its commitment to a deal last week upon receiving an extension from the UK Takeover Panel to its 'put up or shut up' deadline, Temenos has now thrown in the towel.

Says a statement: "Temenos today announces that no agreement has been reached on the final terms of a transaction. Accordingly, Temenos confirms that discussions between the two parties have now been terminated."

In its own statement, Misys says talks with Vista Equity Partners and CVC and ValueAct about possible cash offers are ongoing. The Vista bid offers a more complementary fit following its recent acquisition of Thomson Reuters' Kondor risk management unit, but CCV has ValueAct in its corner, which may carry more weight in voting shares.

Shares in Misys are down 8.3 pence, or 2.4%, to 332.7 pence in morning trading. Temenos shares are off CHF0.60, or 3.7%, at CHF15.60.

Comments: (0)