Vista plans to combine DH Corporation with Misys, its British portfolio company.
US based investment firm Vista Equity Partners has entered into an agreement to acquire D+H Corporation (D+H) for $4.8bn (£3.57bn).
Following the acquisition Vista will merge the company with British banking software developer Misys, which is one of its portfolio companies.
Vista will acquire D+H’s shares by paying C$25.5 ($18.94) in cash per share and will also assume all the debt obligations, as per the deal.
The transaction price includes a premium of 36% more than the share value of D+H in last December.
D+H offers services in payments, lending and retail banking solutions in the North American region. On the other hand, Misys offers software solutions for retail, corporate banking, lending, treasury and capital markets, investment management and enterprise risk.
Vista had Misys acquired in 2012 for £1.27bn. Misys was later merged with Turaz, a former treasury and risk management software division of Thomson Reuters, which Vista acquired in 2011.
According to Vista, the two companies bring unique strengths which can be combined to form a global player in the financial technology industry.
The combined company would have global presence and would allow it to provide a spectrum of financial software solutions. The company is also expected to have a workforce of 10,000, more than 9000 clients spread across 130 countries including 48 of the top 50 banks.
D+H CEO Gerrard Schmid said: “The combination of D+H and Misys creates a global leader in financial technology, with a broad array of products to serve customers.
“D+H brings depth in North America and leadership in payments and lending; while Misys has a strong market position in Europe, the Middle East, Africa, and Asia; and leadership capabilities in banking, capital markets, investment management and risk solutions.”
Misys CEO Nadeem Syed said: “The combination of our two companies creates significant opportunity for our customers, our employees and our partners.
“By coming together, we have the opportunity to create a global FinTech leader, positioning us to lead the corporate banking software space, accelerate our cloud-based offerings, and expand our footprint in North America.
“The complementary nature of our two organisations combined with our robust domain expertise and strong leadership means that we will be able to bring even more value to our clients through our expanded offerings.”
The deal is subject to approval from court and from the D+H’s shareholders with more than 66% votes. It is expected to close in the third quarter of 2017.