Misys still waiting on compelling offer

Private equity firms Permira and General Atlantic Partners are still in the running for Misys, but the software and systems group says that it has yet to receive an offer it can recommend to shareholders.

Misys, a UK banking and healthcare software business which opened its books to private equity and trade buyers in July, has said that it is yet to receive any takeover proposals it can offer to shareholders.

Permira, a European buyout firm, and General Atlantic Partners, a US private equity group were reported to have approached Misys in July following a management buyout approach from Kevin Lomax, chief executive and co-founder of the business. Permira and General Atlantic Partners are understood to have partnered with Lomax and his management team.

According to today’s Financial Times, the two private equity firms are still in the running for Misys, but a consortium including Silver Lake Partners, a US technology buyout firm, and Sungard Data Systems, a US software and systems group, have dropped their interest after their bids were deemed too low.

Fiserve, a US technology company, has also had a bid rejected, said the FT.

Misys released a statement yesterday saying that it had not yet received a compelling offer after allowing interest parties access to its data for due diligence: “The independent committee has not yet received any proposals, which it considers should be put to shareholders, although discussions with various of these parties are continuing. There can be no guarantee that a formal offer for the company will be made on terms that the independent committee would be prepared to recommend to shareholders.”

At 9.30am BST today, Misys shares were trading at 230.5 pence per share. At the time of the announcement that the business would open its books to interested parties, shares were trading at around 243 pence per share.