DBS, Countrywide, Financial Options, IFA Network and Kestrel will be no more as of August 1st, pendi...
DBS, Countrywide, Financial Options, IFA Network and Kestrel will be no more as of August 1st, pending FSA approval of Misys' plans to rename all of the above under the new Sesame Group brand.
Sesame will be a single network with a 25% IFA market share that Misys wants to spin off by the second half of 2004.
Existing members of the current five networks will not be required to sign new contracts by the 1 August, because the rebranding is just that, says Misys' head of communications Paul Charles.
"At the end of the day if your contract was with Countrywide, for example, you will still have that contract, it's just that it will be with 'Sesame'," he says.
The new name also comes with a new pricing structure, which Misys says "will reduce the price of membership for the majority of firms".
"It means lower prices for 95%-plus of our members. Our headline top rate has been 16%, but that becomes 12.5% under Sesame. The majority of members will be at 10% or less under the new scheme, depending on turnover," Charles adds.
The new pricing structure includes free research material.
When Sesame floats next year, 10% of the company will be gifted to network members, although exactly how this will proceed is yet to be decided.
"It may be shares, it may be options, it may be cash. We'll see," says Charles.
Whatever form it takes, the members' stakes will be decided by a date set in advance of the float, so that all firms that are members by that date will be eligible to get their portion of Sesame.
Other issues include the appointment of Patrick Gale, currently chief executive of Misys Life and Pensions, to the role of chief executive of Sesame Group when it launches on 1 August.
And Besides the five networks mentioned, the Sesame name will also replace other parts of Misys' business:
Sesame will also include AssureWeb.
Misys shares are up 4.25p to 194p today.
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