Vista to acquire D+H for fintech merger with Misys
The US buyout firm wants to create a ‘global fintech powerhouse’ by merging an existing portfolio company with its new acquisition
Private equity firm Vista Equity Partners has struck a deal to acquire D+H, a Canadian financial technology provider, with an eye to merging it with UK-based Misys to create a financial software company with $2.2 billion in revenues.
US-based Vista said in a statement today that it will pay C$25.50 per share in cash for D+H, including the assumption of debt, in a deal that values the Toronto-listed firm at 4.8 billion Canadian dollars.
The buyout firm acquired software provider Misys in 2012. The combined company will be privately held, Vista said.
It’s another twist in the Misys story. A planned float of the business on the London Stock Exchange was scrapped in October 2016; the firm had hoped to raise up to £500 million through an initial public offering. A report last week in The Financial Times said that Misys was exploring a potential IPO in New York. A spokeswoman for Misys declined to comment.
Misys chief executive Nadeem Syed said the combination of the two companies gives them the opportunity to create a “global fintech powerhouse”.
That powerhouse would have about 10,000 employees and 9,000 customers, including 48 of the top 50 banks, the statement said.
D+H chief executive Gerrard Schmid said: “D+H brings depth in North America and leadership in payments and lending; while Misys has a strong market position in Europe, Middle East, Africa and Asia and leadership capabilities in banking, capital markets, investment management and risk solutions.”
The deal, which requires approval from D+H’s shareholders, is expected to complete before the end of the third quarter.
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