The worst case scenario is off the table – we see Temenos’ withdrawal as a positive, as we foresaw material integration risk. It now becomes a guessing game. The downside risk is less with Misys as a standalone play (even without a chief executive) than with the Temenos merger.
GEORGE O’CONNOR | PANMURE GORDON
We are not surprised that Temenos has walked away from Misys. The bid was less attractive to shareholders given, in our view, that the combo could not afford a cash sweetener. This gives Vista a clearer run – but private equity has a habit of walking away from deals.
ROGER PHILLIPS | MERCHANT SECURITIES
We remain sceptical over Vista as Misys would be divergent in terms of size and profile compared to the fund’s previous deals. We think it is more likely that Vista is taking a look under the hood of a competitor. Competitive tension is lessening and so the potential for a price of circa 400p is receding.