UK IT firm Misys to acquire Sophis SCA in a $593 million deal

UK-based multinational software company Misys Plc, which  caters to the financial services and healthcare sectors, today said that it plans to acquire capital markets software firm Sophis SCA, from private equity firm Advent International, in a deal worth £375 million ($593 million) including debt.

Sophis is a leading global provider of cross-asset, front-to-back-office securities trading systems, with particular strength in portfolio and risk management. Sophis solutions are used by financial institutions on both sell-side (investment banks) and buy-side (asset managers and hedge funds).

Dublin-based Sophis has approximately 130 financial institutions as its customers, which include Axa, Fidelity, Nomura and UBS, Barclays, HSBC, Natixis and Royal Bank of Canada.

For 2009, Sophis reported revenues of €74 million and operating profit before interest and tax of €30 million.

Under the deal, London-based Misys will acquire Sophis from its principal shareholder Advent International and various management shareholders, for an equity value of approximately £235 million. Of this, £230 million will be paid in cash upon completion and the remaining £5 million through the issue of Misys shares to Sophis's management shareholders.

Misys will pay an additional £4 million in cash subject to Sophis's performance in the year to December 2010.