Banking software supplier Misys, which delisted from the London Stock Exchange (LSE) FTSE 250 index four years ago when it was bought by US private equity firm Vista Equity Partners, plans to return to the stock market next month.
While Vista paid £1.27bn for the company, the flotation is expected to value Misys at up to £5.5bn and it aims to raise £500m to pay down debt and for investment.
Misys has around 2,000 clients, which include 48 of the world’s 50 largest banks. Nadeem Syed, its chief executive officer (CEO) said that a combination of regulatory change, emerging technology and a greater focus in finance on risk management made for a “significant opportunity” for the company.
“I believe that the return to public markets as a larger, more innovative and more effective company is a logical step in our evolution,” he added.
Shares in the company will begin trading on the LSE early next month, and Goldman Sachs, Bank of America Merrill Lynch and JP Morgan Cazenove have been chosen to manage their sale, along with Morgan Stanley, Barclays, Credit Suisse and Deutsche Bank.
Supporting its plans, Misys cited figures from market research group IDC that spending on software by banks could reach up to US$35.8bn by 2019. Software currently accounts for 83% of the company’s revenue, with the remaining 17% coming from professional services.
The news comes as cloud-based software group Reval announces that it has agreed to be acquired by ION Investment Group.
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The bank believes that the battered UK currency, recently only just holding above the US$1.20 level, could be trading at US$1.36 by this time next year.
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The IT research and advisory group forecasts that worldwide IT spending in 2017 will edge 2.9% higher to total US$3.5 trillion.