By Simon Miller

Banking software provider Misys is set to be taken over by private equity firm Vista.

The Misys board are to recommend the bid of 350p/share from Vista-owned investment vehicle Magic Bidco, it was announced this morning.

The bid values Misys at around £1,266.8bn and follows an unsuccessful bid from Swizz firm Temenos which withdrew from talks last month despite being granted a four week extension to its "put up or shut up" deadline by the UK Takeover Panel.

Bidco is an investment vehicle owned indirectly by the Vista Funds which has been formed for the purposes of making the acquisition for the private equity firm which focusses solely on acquiring enterprise application software and software enabled companies with over $6bn in equity capital under management.

Vista has completed 68 software and software-related transactions totalling more than $14.8bn in aggregate value, including the recent acquisition of Turaz, a provider of trade and risk management software globally which will be merged with Misys.

Commenting on the acquisition, Robert Smith, chairman and CEO of Vista Equity Partners said: "Through our deep experience with enterprise software companies, we believe that Misys has an attractive future that we plan to invest in and grow. With the combination of Misys and Turaz, one of our existing portfolio companies, we are creating the global leader in core banking, treasury management, capital markets and enterprise risk management software headquartered in the global banking centre, London."

Tom Kilroy, Acting CEO and general counsel of Misys, said: "We are looking forward to combining our core banking solutions and our capital markets solutions with the trading and enterprise risk management solutions from Turaz. The combined company will be the global leader in delivering solutions to the financial services industry and will have over 1,700 customers across the world."

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