Misys completes sale of non-core banking businesses
Misys plc, the global software solutions and services group, today announces the sale of the UK back office products business from within Misys Asset Management Systems. The business is being purchased by a management buy-out team backed by Primary Capital, a prominent private equity firm.
This transaction follows the sale, announced on 3rd November, of certain equities trading products from within Misys Securities Trading Systems. Together these transactions represent a decisive move to exit non-core businesses and to re-focus the Misys Banking Division on larger, faster-growing sectors within the banking software markets.
In the year to 31st May, 2003, the businesses which have been sold accounted for a combined turnover of £39 million. The total consideration for the two deals is £25 million.
Misys retains a strong position in the asset management systems market through its award-winning Apollo and Eagleye products. These modern products address the rapidly-growing market for front- and middle-office solutions, and will be at the core of the Group's strategy to build market-leading businesses in both the institutional and private wealth sectors of the market. Clive Pedder has been appointed the new CEO of Misys Asset Management Systems, which will continue to exist as a wholly-owned subsidiary of Misys plc with offices in London, Paris, Luxembourg, Nice and Birmingham. Clive was most recently President & CEO of MPCT Solutions Corporation - the ATLAS wholesale banking solutions provider - having led its successful restructuring and sale on behalf of venture capital investors.
The principal products being sold in the deal announced today - Fiscal and Quasar - are back-office solutions with leading positions in the UK market. They are being acquired by Rhyme Systems Ltd, which is a newly formed company, owned jointly by the management team and by Primary Capital. Chris Potts, formerly CEO of Misys Asset Management Systems, is now CEO of Rhyme Systems. Approximately 150 staff will transfer from Misys to the new company, which will have offices in London, Birmingham and Nantwich.
Chris Potts, CEO, Rhyme Systems commented, "This transaction allows us to take Rhyme Systems into an exciting new era as an independent group, building on our achievements to date."
Ivan Martin, CEO of Misys Banking and Securities Division, commented: "Over the past two years Misys Asset Management Systems has increasingly concentrated its activities on the front-end of the investment process. Our strategy is to focus on specific, growth-oriented market sectors, so this is where the majority of our research and development activity in asset management has been placed. The transaction announced today, together with the sale of the securities trading products announced last week, reflect the action we are taking across the division to implement our growth strategy. We are delighted that our former colleagues have been able to take this opportunity, and we wish Rhyme Systems every success."
About Rhyme Systems
Our objective is to change the way the back-office function is viewed and encourage fresh thinking to maximise our client's return on investment in this vital aspect of their business.
Our objective is to change the way the back-office function is viewed and encourage fresh thinking to maximise our client's return on investment in this vital aspect of their business.
Our focus is solely on the operations part of the asset management process - the area concerned with clearing, settlement, order management and accounting. Although primarily concerned with maintaining efficiency and effectiveness, this 'engine room' of the transactional process is the lifeblood of buy-side firms. In the UK, it is a market worth annually in excess of £150million
Our products enable asset, fund and private wealth managers to achieve maximum performance through the provision of market leading software solutions.
About PrimaryPrimary is an independent private equity firm, founded in 1995, which invests in middle-market management buy-outs, buy-ins and development capital opportunities in the UK and/or continental Europe. Primary works closely with management to develop their business by providing long-term financial resources and strategic support over a three to seven year period. Previous investments include Pegasus Security Group, The British Pepper & Spice Company, P+Z Engineering GmbH, Elisabeth the Chef, Coffee Nation, Thompson & Morgan and The Works. Rhyme Systems is the seventh investment in the second fund, Primary Capital II, which closed in March 2002 at £100 million. Further information can be found on the company website at http://www.primaryeurope.com/.
Enquiries
Misys:
Andrew Farmer
Head of Investor Relations
Misys plc
020 7368 2300
andrew.farmer@misys.co.uk
Misys:
Andrew Farmer
Head of Investor Relations
Misys plc
020 7368 2300
andrew.farmer@misys.co.uk
Helen O'Dea
People & Communications Director
Misys Banking & Securities Division
020 8879 1188
People & Communications Director
Misys Banking & Securities Division
020 8879 1188
Rhyme:
Russ Bryan or Alistair Peck,
Band & Brown Communications
Tel: 0207 419 7000
Email: russ@bbpr.com / alistair@bbpr.com
Russ Bryan or Alistair Peck,
Band & Brown Communications
Tel: 0207 419 7000
Email: russ@bbpr.com / alistair@bbpr.com
About Misys plcMisys plc, the global software products and solutions company, serves customers in the international banking and securities, US healthcare, and UK retail financial services sectors. The group partners with its customers to deliver outstanding IT solutions to essential industries. For the year ended 31 May 2003, Misys reported revenues in excess of £1 billion. Misys employs more than 6,500 people internationally. For more information, visit www.misys.com.
