Bidding war erupts over Fidessa acquisition

Fidessa confirms it has received interest from two separate companies with higher bids than what Temenos first offered in February.

Fidessa confirmed it has been approached by two separate companies looking to acquire it with a higher bid than the £1.4 billion deal first offered by software vendor Temenos in February.

Temenos initially offered Fidessa’s shareholders £35.67 in cash per share, although one of the two separate bidders is considering an offer of £38.29 per share representing a 5% premium on the Temenos offer.

“Discussions with the third parties are ongoing and there can be no certainty that a formal offer from either will be forthcoming or as to the terms of any such offer,” Fidessa said in a statement.

It added that Fidessa’s Scheme Court Meeting and General Meeting to approve the Temenos offer, due to take place on 5 April, will be adjourned as the company mulls the counteroffers.

Fidessa reiterated the adjournment of the meeting is not an indication that the Temenos offer has been delayed or declined.

Temenos executive chairman, Andreas Andreades, commented at the time of its initial offer that the current vendor landscape is fragmented and dominated by legacy technology, meaning the combination of both parties would create huge opportunities.

“This creates a huge opportunity to combine the complementary product strengths of Fidessa and Temenos in the front and back office to create a highly differentiated multi-asset class end-to-end platform for capital markets that will offer best in class costs and processing capabilities,” he said.

Should it be successful, the acquisition is excepted to yield significant benefits for Temenos through cross-selling opportunities, with roughly $60 million of cost synergies targeted within three years of the deal completing.

Fidessa concluded its shareholders will be notified of the revised timetable and processes for the rescheduled meeting in due course.

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