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.
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