Misys finally admits to bid

 
Steve Dinneen
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MISYS surged almost nine per cent yesterday after confirming it has received a preliminary bid.

One analyst described the move as the “end game” for the firm, which has been subject to takeover speculation for almost a year. The unnamed suitor is thought to be a US-listed financial software firm, with Merrill Lynch understood to be advising.

Financial terms were not disclosed but analysts say an offer could be between 450p to 500p a share, a premium of up to 20 per cent on its closing price of 419p yesterday, which valued it at £860m.

Misys, which competes with companies including Temenos, Fidelity, Fiserv and SunGard, has seen its share price climb more than a third since bid rumours began to circulate.

Fiserv and Fidelity have both been named as possible buyers, with some analysts suggesting an unnamed Indian firm could also be interested.

In a statement Misys said: “The board confirms it has received a preliminary approach that may or may not lead to an offer being made.”

Misys has brought in Barclays Capital as its adviser on the deal. Its usual broker is Deutsche but a source close to the company told City A.M. the firm has worked with a number of banks over the last 12 months.