Temenos discusses acquisition of Fidessa

Board of Fidessa intends to accept an all cash offer from Temenos if it is made.

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.”