Fidessa Agrees to £1.4 Billion Takeover by Temenos

Fidessa Group Plc said on Wednesday it has agreed to a takeover by Swiss fintech ‎company Temenos in a deal worth up to £1.4 billion ($1.96 billion), signaling the start of ‎what may become a flurry of consolidation in the sector.‎

It comes after the pair said yesterday they were in detailed, advanced discussions over an all-‎cash acquisition offer‏.‏

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The UK-based trading technology supplier recommended the deal to ‎shareholders, who will receive £35.67 per share, plus the ‎£0.797‎ a share dividend ‎announced before for the company’s 2017 results. ‎

The takeover would allow Temenos Group AG to achieve its turnaround ambitions sooner ‎than expected through tapping Fidessa’s equity-trading technology.‎

Temenos’s pursuit of Fidessa is its second attempt to buy ‎a British software company. The deal comes six years after losing ‎out in the battle to buy UK financial software provider ‎Misys. ‎

Temenos’s executive chairman Andreas said the deal will ‎accelerate both companies’ complementary growth strategies against a background of increasing economic uncertainty in the UK ‎and a more challenging trading environment. It also enables his company to cross-sell ‎into existing client bases and capture a greater share of the IT and software ‎spend of banks especially as they move to the cloud. ‎

He added in a statement: “The capital markets industry is undergoing structural changes ‎that will require it to renew its software systems. However, the current vendor landscape is ‎fragmented and dominated by legacy technology. This creates a huge opportunity to combine ‎the complementary product strengths of Fidessa and Temenos in the front and back office to ‎create a highly differentiated multi-asset class end-to-end platform for capital markets that ‎will offer best in class costs and processing capabilities.”‎

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