Misys terminates Sesame disposal process
Misys plc announces today (30 March 2006) that it has terminated discussions with potential purchasers of Sesame, its subsidiary that provides support services to UK financial advisers. The Board has concluded that it is not possible to achieve a sale price for Sesame that reflects good value for the business in relation to its asset value and long-term prospects. Consequently, the Board believes that it is not in shareholders’ interests to proceed with a sale at this time.
It remains the Board’s view that Sesame is not core to the company’s strategy. However, Misys confirms that it will continue to own and manage Sesame for the foreseeable future. Sesame is operated as a standalone entity and has a strong management team who will continue to run the business.
Kevin Lomax , Chief Executive, Misys plc, said: ”It has been our intention throughout the sale process to create value for shareholders. Sesame is a business with good long-term prospects and it is currently trading well, reflecting increased productivity from its base of Registered Individuals, who are its customers, and more positive market conditions.
“The transition of Sesame’s business model to encompass directly regulated revenue streams such as multi-tie and additional income from new business areas, is progressing well. We have concluded that this progress was not going to be fully reflected in the achievable price. In light of this, we have come to the view that this is not the right time to sell Sesame.”
A conference call for analysts and investors, chaired by Kevin Lomax, Chief Executive, will be held at 08.30hrs today. To access this call dial +44 (0) 1296 480 180, passcode 134387#.
The call will be available for replay on +44 (0) 1296 618 700, passcode 624373#, until 5 April 2006.
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Josh Rosenstock Tel: +44 (0) 20 7368 2327 Mob: +44 (0) 7921 910 914
Email: josh.rosenstock@misys.co.uk
Email: josh.rosenstock@misys.co.uk
About Misys plc
Misys plc (FTSE: MSY), the global software company, is one of the world’s largest and longest-established providers of industry-specific software. Founded in 1979, Misys serves the international banking and healthcare industries, combining technological expertise with in-depth understanding of customers’ markets and operational needs. In banking Misys is a market leader with over 1,200 customers, including 49 of the world’s top 50 banks. In healthcare Misys is also a market leader, serving more than 110,000 physicians in 18,000 practice locations, 1,200 hospitals and 600 home care providers. Through Sesame, a wholly-owned subsidiary, the company is also a leading provider of support services to about 7,800 financial advisers in the UK. Misys employs around 6,000 people who serve customers in more than 120 countries. For more information, visit www.misys.com
