Canadian financial software-provider DH Corp (D+H) is being taken private through an acquisition by private equity group Vista Equity Partners.
The firm intends to merge D+H with another of its portfolio companies, UK-based Misys after completing the acquisition.
Vista will acquire all outstanding shares of D+H and pay C$25.50 ($19) per share, putting the deal’s total value at C$4.8bn ($3.6bn).
The price tag represents a 36% premium of D+H’s closing share price on 5 December 2016, when news circulated that the Toronto Stock Exchange-listed company was exploring alternative strategies.
News of the acquisition comes after Misys scrapped its plan to float on the London Stock Exchange citing unfavourable market conditions.
Misys develops software for retail and corporate banking, lending, capital markets and investment management.
A reversal into C+H was seen as a possible option for the London-based company.
Vista says the combined entity created through the acquisition and subsequent merger will generate approximately $2.2bn in revenues and count 10,000 employees and 9,000-plus customers across 130 countries, including 48 of the top 50 Banks.
Chairman of D+H’s board Paul Damp said: “After a comprehensive review of strategic alternatives, the Special Committee of Independent Directors and our board have unanimously concluded that this agreement is in the best interests of the Company and our stakeholders.
“We are pleased that this transaction appropriately recognizes the value of D+H’s market-leading suite of mission-critical FinTech solutions, which are trusted by thousands of financial institutions, governments and corporations.”
The deal is expected to close by the end of Q3 2017 and is still subject to the approval of D+H’s shareholders and regulators.
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