Banking specialists Misys and Temenos agree terms for merger

Banking software provider Misys and banking systems specialist Temenos have agreed terms on a possible merger.

Misys and Temenos both have core banking systems, BankFusion and T24. Whether a potential merger will mean that the companies will only focus on one system has not yet been announced.

Last week the two companies announced that they were evaluating options, including a strategic combination.

The companies have now agreed terms for an all share merger which they say could create one of the world's largest financial software companies.

The CEO of Temenos, Guy Dubois, will act as CEO of the combined group, and Stephen Wilson, currently CFO of Misys, will act as CFO of the combined group.

Mike Lawrie, CEO of Misys, will be leaving the company.

The combined group will comprise five Misys board members and four Temenos board members.

"It is expected that the combination will yield significant cost savings and operational synergies through scale efficiencies and cross-selling opportunities," the companies said in a statement.

The companies said that they could look forward to long-term growth because of an increasing demand among financial institutions for efficiency and customer service.

Under the deal, each Temenos share would be exchanged for every 4.1 of Misys shares. This would mean that Misys shareholders would own about 53.9 per cent of the share capital, with Temenos shareholders owning 41.6 per cent.