U.K. software company Misys said it has reached an "agreement in principle" on key terms of a potential merger with Swiss core banking provider Temenos. The two sides are continuing discussions regarding the entire details of a merger between the two groups. This comes after an unsuccessful effort by Fidelity National Information Services to take over Misys for $2.2 billion in August.
In a note to investors, Misys said the two companies "believe that the combination would create one of the leading companies in the financial services software industry with the prospects for long term growth underpinned by increasing demand amongst financial institutions for improved efficiency and customer service."
If the merger is completed, Guy Dubois, currently CEO of Temenos, will act as CEO of the combined group and Stephen Wilson, currently CFO of Misys, will act as CFO of the combined group. Both will become members of the board of directors, which will be chaired by Andreas Andreades, currently chairman of Temenos.
Misys and Temenos intend to merge under a new holding company that will seek a premium listing on the London Stock Exchange with a potential secondary listing on SIX Swiss Exchange. The combined group is expected to be headquartered in Switzerland.
Meanwhile, the former CEO of Misys, Mike Lawrie, was announced today as the new chief executive of business technology and outsourcing firm CSC. Lawrie replaces the retiring Michael Laphen as CEO.