Vista merges Misys and D+H

The GP acquired D+H in March in a C$4.8bn EV take-private deal, having reportedly been in competition with Advent to take over ownership of the business.

According to a statement issued by D+H, the merger will create a consolidated group with 10,000 employees and around 9,000 customers across 130 countries. It will have revenues of $2.1bn on a trailing 12-month pro forma basis with operations in 42 countries.

The merger comes eight months after Misys scrapped its IPO, following what it described as market volatility that followed the UK's vote to leave the EU. However, the Financial Times reported at the time that the company's revenues had fallen by around 5% in the preceding two years.

Misys CEO Nadeem Syed will take on the role of CEO at Finastra, which will be headquartered in London but retain its North American headquarters in Toronto.

Vista acquired Misys in a £1.27bn take-private in March 2012, seeing off competition from rivals including CVC Capital Partners and ValueAct Capital Partners. Following the deal, the GP merged Misys with treasury and capital markets software provider Turaz, originally owned by Thomson Reuters.

Company
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 EBITDA of €293.9m in the year ending May 2016. European sales account for 55% of its revenues, with the Americas accounting for 17%.

Founded in 1875 and headquartered in Toronto, D+H is also a provider of financial software. The business generated $1.68bn in revenues in its most recent financial year, with EBITDA of $124.7m.

People
Vista Equity Partners – Robert Smith (founder, chairperson, CEO).
Finastra – Nadeem Syed (CEO).

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