Misys boss to move to the US
CHIEF executive Mike Lawrie’s decision to leave Misys at the end of March has reduced the chance of a rival bid derailing the software maker’s takeover of Swiss rival Temenos, a deal seen by some analysts as a quick – but poor – fix to tackle weak demand. Lawrie is taking the top post at US-based tech services company Computer Sciences Corp after five years at the British company.
Misys yesterday named Tom Kilroy, its general counsel, as acting chief executive to lead the negotiations with Temenos.
Misys and Temenos, which compete in banking software, laid out more terms of their proposed all-share merger, which was flagged on Friday, after market close on Tuesday, with investors in the British company owning 53.9 per cent.
Analysts said that with the departure of Lawrie, who has a reputation as a dealmaker, the chance of another bidder had receded.
Jefferies analyst Milan Radia said a transaction between Misys and Temenos was now the most likely outcome.
Shareholders have been hopeful of M&A activity that could boost both companies’ prospects against a backdrop of weak demand from banks still reeling after the financial crisis.
The lacklustre reaction from investors yesterday, however, raised questions as to whether the companies’ falling into each other’s arms was the best solution, despite both highlighting increased revenue opportunities and cost savings.
Misys shares, which rose to a five-month high of 353p on 31 January, closed down 8.5 per cent at 298p yesterday, valuing the firm at almost £1.1bn.