Misys has reached an agreement in principle to merge with its Swiss rival, Temenos, in a deal that will create one of the world's largest financial software businesses.
The all-share deal would see the departure of Misys CEO Mike Lawrie, whose £2m bonus payout last year was condemned as "wholly excessive" by some shareholders.
The CEO of the new combined group will be the Temonos boss Guy Dubois. Mr Lawrie told the Misys board that he would be "pursuing a new opportunity". Mr Lawrie's five year bonus package was controversial because it was dependent on the Misys share price, which was boosted by anticipated takeover activity.
A joint statement by the two firms last night said that Temenos' presence in banking, wealth management and business-intelligence software would complement Misys' strength in core and transaction banking, treasury capital markets and lending. New regulatory requirements on banks are expected to result in an increase in their demand for software services.
The companies said that Misys shareholders would own about 54 per cent of the new group.
Analysts have suggested that the there could be a counter bid.Reuse content