Private-equity firm Vista Equity Partners is acquiring Canadian financial technology vendor D+H and plans to merge it with Misys, another fintech firm in its portfolio that it bought in a US$2bn deal five years ago.
Toronto-based D+H said that it had entered into a definitive agreement under which Vista will acquire all of the outstanding shares of its parent company DH Corp. for $18.96 per share in cash. Including debt, the deal is valued at US$3.57bn and is set to close in the third quarter of 2017.
“By combining D+H with Misys, Vista will be creating a global leader in financial technology,” said D+H chief executive officer (CEO) Gerrard Schmid.
“D+H brings depth in North America and leadership in payments and lending; while Misys has a strong market position in Europe, Middle East, Africa and Asia and leadership capabilities in banking, capital markets, investment management and risk solutions.” D+H has itself been acquisitive in the past, with its purchases including the US$1.25bn purchase of Fundtech nearly two years ago.
Misys CEO Nadeem Syed said the combination of the two companies provided the opportunity to create a “global fintech powerhouse”. The combination will create a fintech with around 10,000 employees and 9,000 customers, including 48 of the top 50 banks.
London-based Misys has acquired several US companies since its own acquisition by Vista in 2012. Last September it launched a platform-as-a-service (PaaS) product aimed at helping banks moved towards open application programming interface (API)-based models.
At that time, Misys was also planning a float of the business on the London Stock Exchange (LSE) and had hoped to raise up to £500m via an initial public offering (IPO) but the plan was abandoned last October. Earlier this month, a Financial Times report suggested that Misys was exploring the possibility of an IPO in New York.
The top five sectors Asian fintech investors are interested in are data analytics, blockchain, lending, payments and regtech, according to Gary Hwa, EY regional managing partner.
On the third day of the Singapore Fintech Festival conference, there was a focus on specific applications of fintech innovation. One was trade finance, which is clearly is ripe for a revolution.
Kicking off day two of the Singapore Fintech Festival, Deloitte Chairman David Cruikshank said that fintech is significant for three reasons. First, customer expectations of services are higher than ever. Second, barriers to entry are lower than before. And finally, financial institutions (FIs) face a threat of what a competitor might do.
Kicking off the first day of the Singapore Fintech Festival, issues with cryptocurrencies were addressed by MIT media labs director, Joi Ito, and panels of technology leaders discussed how they’re using data analytics.