Vista-backed Misys aims to raise £500m from IPO

Kenny Wastell
06 October 2016

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Vista Equity Partners-backed banking software provider Misys has announced its intention to float on the London stock exchange.

The company intends to raise £500m through the process, which is expected to take place in early November, with a free float of 25% anticipated at the time of admission.

The proceeds are primarily to be used for the repayment of existing debts, though the business said in a statement Vista may also be in a position to partially divest its stake as part of the deal.

As part of the listing, Misys has appointed former Hewlett Packard senior executive John Hughes as independent chairperson.

Vista acquired Misys in a £1.27bn take-private in March 2012. The deal, which valued the company's shares at 350 pence apiece, saw Vista see off competition from rivals including CVC Capital Partners and ValueAct Capital Partners.

Following the deal, Vista merged Misys with treasury and capital markets software provider Turaz, originally owned by Thomson Reuters.

Founded in 1979 by Kevin Lomax as a computer systems supplier to UK insurance brokers, Misys sells software to banking and investment companies. It has a headcount of 4,600 across 51 offices.

The company generated revenues of €811.4m and adjusted EBITDAC of €293.9m in the year ending May 2016. European sales account for 55% of its revenues, with the Americas accounting for 17%.

Goldman Sachs, Bank of America Merrill Lynch and JP Morgan Cazenove are acting as joint sponsors, joint global coordinators and joint bookrunners for the upcoming flotation. Morgan Stanley is also acting as joint global coordinator and joint bookrunner while Barclays, Credit Suisse and Deutsche Bank are acting as joint bookrunners.