Fidessa, a leading London-based financial technology company, is said to be in talks with Swiss Temenos. The Geneva-headquartered banking software supplier is considering offering the UK company £1.4 billion ($1.96 billion).
The main focus of the deal is Fidessa’s equity-trading technology. The Swiss company shared the news in an official regulatory announcement. Under the terms of the deal that is being discussed, shareholders of Fidessa would receive £35.67 in cash for each share. In addition, they would also be paid a dividend of £0.797 per share. The price has a 22 percent premium on yesterday’s closing price.
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Following the news, Fidessa’s stock rallied over 24 percent to £36.35, trading just below the offer price. Currently, the shares are at £35.65, higher by about 22 percent.
Commenting on the announcement, the target company outlined that should a firm offer be made, the board of Fidessa intends to recommend its acceptance to shareholders.
Fidessa is one of the more reputable financial software companies in London. Temenos is still contemplating a final offer as its revenue growth has been modest, and unknowns about whether this can be accelerated by investment strategies are delaying a final deal.
At the time of publication, no firm offer has been made to shareholders of Fidessa. The aforementioned announcement is not tantamount to an offer. Shares of Temenos tanked about 20 percent on the news, with the firm’s board stating that it will issue a further statement when appropriate.