Swiss Banking Software Supplier Contemplating Purchase of Fidessa

February 21, 2018

One of the leading London-based financial technology companies, Fidessa is said to be in talks with Swiss Temenos. The Geneva-headquartered banking software supplier is considering to offer the UK company £1.4 billion ($1.96 billion).

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The main focus of the deal is Fidessa’s equities-trading technology. The Swiss company has shared the news in an official regulatory announcement. Under the terms of the deal that is being discussed, shareholders of Fidessa receive 35.67 pounds in cash for each share. In addition, they will also be paid a dividend of 0.797 pounds per share. The price has a 22 percent premium on yesterday’s closing price.

Following the news, Fidessa’s stock rallied over 24 percent to £36.35, trading just below the offer price. Currently, the shares are at £35.65, higher by about 22 percent.

Commenting on the announcement, the target company outlined that should a firm offer be made, the board of Fidessa intends to recommend its acceptance to shareholders.”

Fidessa has been one of the most reputable financial software companies in London. The Swiss company is still contemplating a final offer as the revenue growth of Fidessa has been modest and unknowns about whether investment strategies can accelerate that are delaying a final deal.

At the time of publication, no firm offer has been made to shareholders of Fidessa. The announcement of the intent of purchasing the shares is not tantamount to an offer. Shares of the Swiss company tanked about 20 percent of the news, with the firm’s board stating that Temenos will issue a further statement when appropriate.

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