Swiss software provider Temenos confirmed it is in talks to acquire Fidessa in a £1.4 billion deal, marking the latest industry merger involving major technology providers.
A statement published by Temenos said it is in advanced talks for a possible all cash offer for the entire issued, and to be issued, share capital of Fidessa.
Under the terms, Fidessa shareholders would receive £35.67 in cash per share alongside the right to receive final and special dividends announced yesterday within Fidessa’s annual results.
“Should a firm offer be made… the board of Fidessa intends to recommend its acceptance to Fidessa shareholders,” the statement said. Fidessa’s share price surged almost 21% following news of the proposed deal, at the time of publication.
The deal is the latest combination incorporating major trading and banking technology providers seeking differentiation in a saturated market through global expansion, as well as additional services and products.
In November, trading software providers Itiviti and ULLINK confirmed plans to merge and form a combined entity worth more than $200 million in revenues, and a presence in major markets across Europe, the US and Asia.
Fidessa’s annual results revealed yesterday its annual revenues increased 7% in 2017 to £354 million, compared to £332 million the previous year. Adjusted profit after tax stood at £40.4 million, up 11% from £36.3 million in 2016.
The statement issued by Temenos concluded: “There can be no certainty that any offer will ultimately be made for Fidessa.”