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The c£2bn all-share merger talks between Misys and Temenos have collapsed - with Temenos apparently walking away - so there won’t be a tie-up between the banking software specialists. Despite extensive talks – even to the extent of the proposed management structure – the two said they were unable to agree final terms.
As we noted in PE’s queuing up to walk Misys down the acquisition aisle, the odds of the share-based Misys/Temenos proposal going ahead had lengthened considerably in the face of two prospective private equity all-cash offers. Misys is still in discussion with Vista Equity Partners, and with the CVC Capital Partners Limited/ValueAct Capital duo.
Vista Equity has been building up its financial services portfolio (see Misys/Temenos halted by Vista Equity Partners?), while ValueAct Capital is a major Misys shareholder and has a long history with Mike Lawrie who recently left Misys to move to CSC. Misys would slot into both firms but Vista Equity looks to have a more complementary portfolio. However, neither party has put a firm offer on the table yet so Misys could remain a singleton.
