Vista likely to buy Misys as rival pulls out

BRITISH software maker Misys is set to fall into the hands of San Francisco-based private equity shark Vista after CVC Capital said it would not make an offer for the group, writes Peter Campbell.

CVC, an American private equity giant, lodged early interest in Misys, which makes software used in the banking industry.

To bolster its case it teamed up with Valueact, the largest investor in Misys with a 21pc stake. But CVC decided to call off its pursuit after Vista submitted a blockbuster offer of £1.27bn, or 350p per share.

It is understood the decision by Misys’ board to recommend Vista’s offer – which also received the support of major shareholders Schroders and Threadneedle – convinced CVC to pull out.

All eyes are now on Valueact. It was thought that its allegiance with CVC was designed to push up any potential deal price.

Rather than transferring its support to Vista, it is thought Valueact will remain neutral until the shareholder ballot on April 24.

Unless a better offer comes along – which is considered unlikely – the group is widely expected to get behind Vista’s buyout.

Temenos, the Swiss rival to Misys, was originally in merger talks with the company, but walked away after both Vista and CVC said they were mulling cash offers.

While the Geneva-based group could still come back with its own cash offer, it is believed Temenos will continue to lick its wounds. Once taken over, Misys – while symbolically remaining in the UK – will be managed from Vista’s headquarters some 5,000 miles to the West.

Vista plans to merge Misys with Turaz, the British trade and risk management software group it bought in February for around £400m.

Misys shares yesterday dropped 9p to 349p as investors resigned themselves to the Californian takeover.