Misys to seek flotation of IFA businesses
- Flotation expected within two years
- Strategic initiatives underway to enhance network services
- Network members to receive related benefits
Misys plc today announced its intention to float its IFA network businesses within two years.
As part of the flotation plan, more than 7,000 advisers of the Misys-owned networks – Countrywide, DBS, Financial Options, IFA Network and Kestrel – will receive benefits linked to their membership, including participation in the float.
The floated business would be a self-contained entity comprising the five IFA networks, the related technology businesses of the AssureWeb portal and the IFA desktop software products range.
The flotation would not occur until equity markets have stabilised and until the new regulatory regime is clearer, after the Financial Services Authority reports on depolarisation in the autumn.
In advance of the planned separate stockmarket listing, Misys has embarked on an Expansion Plan to enhance its distribution capabilities and offer a broader range of solutions to the Life and Pensions industry.
The first phase of the Plan involves the integration of the Misys IFA Services and DBS networks under a single management team and compliance regime. Patrick Gale, CEO, Misys IFA Services will lead this combined entity. Steve Pearson is appointed DBS Network Director.
Misys also intends to develop a complete suite of services and benefits for a depolarised world for both existing members and other segments of the adviser community. Kevin Budge, formerly Finance Director, Misys IFA Services, is appointed Programme Director.
A further package of measures will be developed to benefit present and future network members, covering recruitment, retention and retirement. This will include significant incentives to drive recruitment and reward loyalty. Misys also intends to put in place measures which recognise that many IFAs have built up substantial capital value in their businesses, measures that include a practice buy-out programme to assist IFAs on their retirement.
Kevin Lomax, Chairman, Misys plc, commented: “We now believe that the business is of a size and at a stage in its development where it would benefit from having an independent future. The steps we have taken over the past three years – leading a process of consolidation in the network sector, investing in technology to support IFAs and product providers, and building a professional management team – have culminated in the strong position we are in today.
On the Expansion Plan, Kevin Lomax added: “The strategic initiatives underway reflect our continued commitment to build our IFA businesses to an even stronger position in the future, which will benefit network members, employees, shareholders and the industry overall.”
The General Insurance businesses, which form the remainder of the Misys Financial Services Division, are not affected by these announcements. These businesses are centered on software products and are therefore more closely related to the Group’s core technology business. However, the planned regulatory changes for general insurance may create similar opportunities for growth.
For further information, please contact:
Paul Charles, Group Head of Media Relations 07769 880991 / 020 7368 2315
Howard Evans, Finance Director 020 7368 2300
About Misys plcMisys plc is one of the world’s largest suppliers of software solutions to the banking, healthcare and financial services industries. Misys carries out transaction and claims processing for US physicians and UK Independent Financial Advisers. Misys employs over 6,500 people worldwide. www.misys.com
