Fidessa trades above Temenos offer price in £1.4bn acquisition after Elliott Capital discloses stake
Banking technology firm Temenos today agreed a £1.4bn acquisition with London-headquarterd software firm Fidessa, with shares trading above the offered price after Elliott Capital Advisors disclosed an increased stake.
The firms today announced the deal had been agreed after the two firms announced the takeover was at an advanced stage yesterday following big share price moves at the start of the week.
Fidessa investors will receive £35.67 per share, while the firm will also pay a special dividend of 79.7p in June.
The price represents a premium of approximately 37 per cent to the closing price at the end of last week.
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However, shares traded at £38.85 per share at the time of writing after private equity heavyweight Elliott Capital Advisors this morning disclosed a 4.87 per cent shareholding.
Elliott has previously agitated for higher acquisition prices, including in Anheuser-Busch InBev’s offer for rival drinks maker SAB Miller and troubled Steinhoff’s bid for discount retailer Poundland.
In the announcement Temenos said the deal was “a compelling opportunity to create a global leader in financial services software”, adding there would be $60m in annual cost synergies.
Fidessa was advised by Rothschild, Jefferies, and Numis, while Temenos was advised by Credit Suisse.
John Hamer, Fidessa chairman, said the deal would give “a very attractive and immediate return to our shareholders”.
Temenos has agreed a loan of up to £1.43bn to finance the transaction, and said it will turn to capital markets before or shortly after completing the deal to raise the cash.
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