Financial technology provider FIS has taken early steps toward acquiring Misys PLC, a U.K. provider with products that span banking, buy-side trading, treasury and capital markets.
Marcia Danziesen, SVP, Global Marketing and Communications, FIS, confirms that FIS made a preliminary approach regarding a cash offer for Misys.
"FIS’ announcement does not constitute an announcement of a firm intention to make an offer under Rule 2.5 of the Takeover Code (the “Code”) and, accordingly, there can be no certainty that an offer will ultimately be made for Misys nor as to the terms on which any offer might be made," she adds.
Danziesen says Jacksonville, Fla.-based FIS will make a further announcement if and when appropriate.
In a June 21 letter to shareholders, Misys chairman James Crosby stressed the discussion was still in its early stages.
"As you may have seen in the press, your Board announced on Tuesday 21 June 2011 that they have received a preliminary approach that may or may not lead to an offer being made for the company," Crosby said.
Nicola Hamilton, Misys director of corporate communications, said she could not comment over and above the announcements that have gone out to the market.
Misys has more than 4,000 employees and 1,200 banking customers in 120 countries, including each of the world's top 50 banks. FIS has more than 30,000 employees in 100 countries and offers solutions across the spectrum of financial services.
"FIS has a lot to gain from a potential acquisition of Misys," says Christine Barry, Aite Group research director. "FIS is already the most global of the U.S. core vendors, but this acquisition would further strengthen its penetration overseas and provide it with additional products for cross-sell. Misys has more than 500 banks around the globe running one of its core systems, thereby providing FIS with a strong base to sell ancillary products. Increasing the average number of products used by each customer will be critical to FIS' future growth; this acquisition can help them in that endeavor. Finally, the Misys acquisition would provide FIS with a strong set of products on the securities and investments side, an area FIS hasn’t had a lot of strength in the past.