TEMENOS has walked away from its all-share merger with banking software company Misys after two other bidders entered the picture waving the possibility of wads of cash.
The Swiss company said on 3 February it was in talks with Misys, and four days later announced plans for Misys to own 53.9 per cent of the combined equity while Temenos’s chief executive and chairman took the helm of the merged group.
But Misys’ biggest shareholder ValueAct, which formerly backed the Temenos merger, joined forces with private equity firm CVC to put forward a rival bid on 5 March – just two weeks after Vista Equity Partners weighed in with a potential offer thought to be around £1.2bn.
Vista has until 19 March to confirm its bid, while ValueAct and CVC have until 2 April.
After extending its original deadline, Temenos yesterday confirmed that “discussions between the two parties have now been terminated” as no agreement had been made on the final terms of a transaction.
But the merger, which would create the largest vendor of banking software, could still happen according to the Takeover Code. Temenos can announce an offer if the board of Misys agrees, if a third party declares a firm intention to bid or if there is a material change in circumstances.
Temenos’ shares dipped six per cent to SFr15.30. Misys dropped four per cent to £3.28, valuing the company at £1.07bn.