Here comes Vista Equity Partners...

Here comes Vista Equity Partners…

It’s official: Canada’s banking software firm DH Corporation (D+H) is to be acquired by Vista Equity Partners.

The venture capital firm, which owns UK-based banking software vendor Misys, beat rival Advent International to acquire D+H, in a deal potentially worth around CA$ 2.5 billion ($1.9 billion).

The intention is to combine Misys and D+H before attempting another IPO for Misys, it is believed.

Misys’ first attempt to list on London Stock Exchange last year did not succeed. There are also talks of the company being listed on NYSE this time.

Together, D+H and Misys will create one of the largest fintech/banking technology firms in the world, with $2.2 billion in revenues, 10,000 employees and 9,000+ customers across 130 countries (including 48 of the top 50 banks).

According to Vista, “Misys and D+H are highly complementary in terms of both software solutions and geographical footprint”.

D+H’s strength is in payments, lending and retail banking solutions in North America, while Misys’ strength is in treasury and capital markets (TCM), corporate banking and retail banking globally.

Gerrard Schmid, CEO of D+H, believes the takeover “is beneficial to our customers, shareholders and employees”.

Nadeem Syed, CEO of Misys, adds that “by coming together, we have the opportunity to create a global fintech powerhouse”.

The combined company will be privately held.

The transaction is subject to customary closing conditions and regulatory approvals, and is expected to close in Q3 2017.

D+H put itself up for sale last year. A number of private equity firms expressed interest as well as rival vendors like Temenos and Fiserv.

@banking
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