Vista to combine D+H with Misys to create diversified fintech market leader

DH Corporation (“D+H”), a leading financial technology provider, announced that it has entered into a definitive agreement with leading private equity firm Vista Equity Partners.

With the agreement, Vista will combine D+H with another of its portfolio companies, UK-based Misys, which is a leading global software provider for retail and corporate banking, lending, treasury and capital markets, investment management and enterprise risk.

Vista will also acquire all outstanding shares of DH Corporation for $25.50 per share in cash including the issued convertible debentures, for a total enterprise value of approximately $4.8 billion. This transaction price shows a premium of approximately 36% over D+H's closing share price on last December.

“We are thrilled by the prospect of combining these two leaders in the FinTech industry,” Brian N. Sheth, Co-Founder and President of Vista Equity Partners, stated. “D+H is an outstanding company with impressive talent and deep experience providing technology solutions to financial institutions worldwide. Over the last five years, we have worked closely with the Misys management team to transform and grow its global business and this is a great next step in that process. Together, Misys and D+H have the promise to shape and lead the future of financial software.”

The combination of Misys and D+H will build a diversified fintech market leader, with a global footprint and one of the broadest set of financial software solutions available to the market with approximately $2.96 billion in revenues, approximately 10,000 employees, and 9,000+ customers across 130 countries, including 48 of the top 50 Banks, the release stated.

With D+H's strength in payments, lending, and retail banking solutions and Misys's strength in capital markets, corporate banking, and retail banking globally, the combination of their businesses will offer global customers with an unrivalled, broad and complete solution portfolio.

“The combination of our two companies creates a significant opportunity for our customers, our employees, and our partners. By coming together, we have the opportunity to create a global FinTech leader, positioning us to lead the corporate banking software space, accelerate our cloud-based offerings, and expand our footprint in North America. The complementary nature of our two organizations combined with our robust domain expertise and strong leadership means that we will be able to bring even more value to our clients through our expanded offerings,” Nadeem Syed, CEO of Misys, said.

The transaction completion is based on court approval as well as approval of DH's shareholders by votes. The transaction is structured as a plan of arrangement under the Business Corporations Act (Ontario).