Private Equity Firm Makes Bid for Misys

Vista Equity Partners has agreed to purchase Misys, a London-based core banking software provider, for $2 billion in cash.

Vista, a U.S.-based private equity firm focused on software and technology businesses, will pay 350 pence (about $5.50) per share, Reuters reported on Monday. Under the deal, Vista would combine Misys with Kondor, a trade and risk management business that Vista purchased last year.

However, ValueAct, Misys’s largest shareholder with a 21.5% ownership, did not support the deal, Reuters reported. ValueAct has been working with a private equity group, CVC Capital Partners, to possibly make a bid for Misys. ValueAct and CVC urged shareholders to wait before taking action and said they were still considering whether to make an offer, Reuters reported.

Misys and Temenos had previously agreed to merge in February. Under that deal, which eventually fell through, Misys shareholders would have received 53.9% of the combined group and Temenos stockholders would have received the remaining 46.1%. Temenos, based in Geneva, provides core software for banking and wealth management.

Misys also provides treasury, capital markets and lending software. It was #31 on the latest FinTech 100 ranking of technology providers.