As expected, Swiss banking software company Temenos has agreed with the board of Fidessa Group to buy the UK financial software specialist for around £1.4bn.
Capital.com reported yesterday that talks between the two companies were at a late stage, with Temenos looking to add Fidessa’s equities trading technology to its business and thereby expanding its customer base in the financial services industry.
Fidessa shareholders will receive £35.67 for each share in the all-cash deal, expected to be completed in the first half of 2018. The UK firm’s investors will also get a final dividend and a special dividend of 79.7p for 2017.
Temenos revealed it is to borrow up to £1.43bn to finance the acquisition, and will later raise cash on the capital markets to reduce its debt.
Temenos Chief Executive Andreas Andreades said in as stock market statement that the deal would “accelerate both companies complementary growth strategies in banking and capital markets and will enable us to cross-sell into our existing client bases and capture a greater share of the IT and software spend of banks especially as they move to the cloud”.
Fidessa’s share price has risen sharply in recent days as speculation of an imminent acquisition gathered momentum.