SOFTWARE giant Misys yesterday saw its stock rocket by a fifth after announcing it will part with its US healthcare joint venture for a staggering £1bn.
Misys sold most of its 55 per cent stake in Allscripts for £900bn, in a deal that paves the way for Allscripts to complete an long-mooted merger with arch-rival Eclipsys. Misys will maintain a 10 per cent interest in the new entity.
Shareholders rejoiced after the software firm said it would return almost £700m of the proceeds to them through a tender offer for their shares.
The sale was led by French M&A veteran Philippe Cerf at Credit Suisse.
The deal has been welcomed by analysts. Roger Phillips at Evolution Securities said the joint venture was “highly overvalued” and say the sale represents “major shareholder value”.
George O’Connor at Panmure Gordon echoed the sentiments, saying Misys “wins kudos” for selling the stake.
Since the Allscripts-Misys merger closed in October 2008, Allscripts shares have risen by around 50 per cent. Misys, which has a market cap of £1.23bn, is now aiming to increase revenue by up to eight per cent over the next two years. It says it will now concentrate on its banking software division.
The good news was greeted by the appointment of Stephen Wilson as chief financial officer. Wilson joined Misys in 2009 as vice president of group finance. Before this he worked at IBM for over 25 years where he became vice president and chief financial officer for IBM UK.