Risk management software providers Misys PLC of Stratford, England, and Cats Software Inc. have signed a merger agreement.
Misys would acquire all of the outstanding stock of Cats at $7.50 a share, or about $60 million.
Cats offers software called Carma that enables financial institutions to measure and predict exposures to market, credit, and liquidity risk. Misys plans to integrate Carma with its own risk management products, Global Manager/Risk Vision.
Cats also offers front-office software, Catalyst, for structuring, pricing, trading, and simulating complex derivatives instruments, as well as back-office capabilities for processing, settlement, accounting, and reporting.
Misys chairman Kevin Lomax said Cats' businesses complement products sold through Misys' subsidiary, Midas-Kapiti International Ltd.