Misys sells back-office arm to management

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The Independent Online

Misys, the financial and healthcare software group, yesterday announced the sale of its UK back-office products business to a management buyout team.

The £20m deal creates Rhyme Systems, jointly owned by a five-man management team and the private equity firm Primary Capital.

The disposal follows the sale this month of some of Misys' equities trading products to the electronic trading solutions provider GL Trade.

The company said the disposals were "a decisive move to exit non-core businesses and to refocus the Misys banking division on larger, faster-growing sectors within the banking software sector".

The total turnover of the two businesses sold was £39m for the year to 31 May, out of total turnover for Misys' banking division of £278m.

Rhyme said the back-office software had "suffered from lack of focus" as Misys had concentrated on higher growth products.

About 150 staff will transfer from Misys to Rhyme, which will have offices in London, Birmingham and Nantwich.

Paul Morley, an analyst at SG Securities, said one of the biggest problems, traditionally, for Misys "has been in understanding what they do" and that, as a result, the shares had traded at a discount. Misys shares closed up 5.5p at 288.5p yesterday.