Misys PLC To Buy Sophis SA From Advent Intl For $606M Including Debt

Misys PLC of the U.K. agreed to acquire Sophis SA for a total of 375 million pounds ($606 million) including debt. Sophis is a French-based provider of capital markets software that is owned by Advent International of Boston, Mass.

(Reuters) – British IT firm Misys (MSY.L: Quote, Profile, Research, Stock Buzz) said it planned to acquire Sophis, a provider of capital markets software, from private equity firm Advent International in a deal worth 375 million pounds ($606 million) including debt.

Misys will pay 235 million pounds for the business, whose clients include AXA, Barclays Capital, and Royal Bank of Canada and take on its net debt of 140 million pounds.

A further 5 million pounds may be paid, subject to performance targets, Misys said in a statement on Friday.

Misys said the acquisition would be earnings enhancing in the year to May 31 2012.

The purchase will be financed through a sale of part of Misys’ remaining 10 percent shareholding in healthcare unit Allscripts, increased credit facilities and a convertible bond.

The acquisition is subject to Misys shareholder approval and is expected to be completed before the end of Feb 2011.

Sophis made an operating profit of 30 million pounds in 2009 on revenue of 74 million pounds.

Misys also said on Friday it would return proceeds of 670 million pounds to shareholders from the sale of the other 90 percent of its stake in Allscripts in August through a tender offer priced between 270 and 310 pence per share.

The lower end of the offer represents a discount of 8.6 percent to Misys closing price of 295.5 pence on Nov 11 and the upper end represents a premium of 4.9 percent.

Shares in Misys were down 1.2 percent to 292 pence at 0805 GMT.

(Reporting by Matt Scuffham)

($1=.6192 Pound)