FIS Makes “Preliminary Approach” to Misys PLC

by Mercator Advisory Group 0

Financial analysts and the media have been speculating for months about the future of Misys PLC, the London-based vendor of financial software serving both the capital and banking markets. Misys announced earlier this week that it had been approached about being acquired, and FIS has now confirmed that it is the entity talking with Misys. Reports say that investment bankers have been retained, but no price has been agreed.

According to the Financial Times:

“Talks over the possible offer – which would be for the whole of the business – are progressing and could be resolved within a month. However, the terms of the US provider’s bid are still unclear and Misys warned on Tuesday that the approach ‘may or may not lead to an offer being made’.”

For FIS, Misys has at least two major attractions: first, its high penetration and installed base in the banking markets in Africa, the Middle East, and Europe, and second, a strong portfolio of securities industry applications serving global money managers and investment banks. Both represent significant growth potential for FIS, which has been much more focused on the lower-growth and highly competitive banking markets in the U.S.

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