Vista Equity Partners this week is interviewing investment banks for a potential IPO of Misys, two banking sources said.
The Misys IPO is slated for Europe, one of the sources said. Vista/Misys has tapped Goldman Sachs as one of the lead bankers for the IPO, the source said. Vista is expected to announce next week the other investment banks it has hired, the source said.
London-based Misys provides investment management and risk services for financial institutions. It has more than 2,000 customers in 130 countries.
Nadeem Syed, Misys CEO, said in a statement that the company regularly reviews its funding policy and strategic options for business expansion. Misys has performed strongly over the years, Syed said.
“At the moment nothing is imminent and conversations with investors are part of our business as usual to evaluate future expansion strategies,” Syed said.
Bloomberg News reported July 18 that Vista was exploring options for Misys, including an IPO. The story said Vista was speaking to advisers and may consider a sale, which could be valued at about $2 billion. Misys produces annual EBITDA of about $398 million, Bloomberg said. UPDATE: Misys’s EBITDA is actually more than $400 million, a person familiar with the situation said. Since Misys’s peers are trading at 16x, Misys could sell more than $6 billion, the person said.
This would be the latest attempt by Vista to exit Misys. The buyout shop reportedly tried to sell Misys in 2014 but no deal came to fruition.
Vista, a technology-focused private equity firm, acquired Misys in 2012 for 1.27 billion pounds or $2 billion. Vista combined Misys with Turaz, the former trade and risk management business it bought from Thomson Reuters. Vista used its fourth fund, which raised $3.5 billion in 2012, to buy Misys.
Goldman declined comment. Vista could not immediately be reached for comment.
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