Kevin Budge, commercial director of 1st Software, says his firm made the first move in a deal to buy back a stake held by Misys.
The reason for doing the deal from 1st's perspective was to avoid a possible future conflict of interest with a less benign stakeholder in light of Misys recent activities involving the sale of assets.
”We wanted to be in control of our own destiny,” Budge says.
The two companies today announced the deal today, which will see 1st Software buy back Misys' stake for a sum undisclosed by mutual consent.
Misys subsidiary Sesame recently sold its 60% stake in Assureweb to providers Aegon UK, Clerical Medical, Friends Provident Norwich Union, Scottish Widows, through a deal that saw Assureweb buy back Sesame’s stake.
Sesame itself is on the block after Misys appointed investment bankers to sniff out a deal.
Buying back Misys' stake will have no impact on 1st’s core activities, Budge says, but is merely an ownership issue.
Misys bought its stake in 1st as part of its acquisition of Financial Options Group in 1999. Misys reported in its interim results for 1999-2000 that the acquisition cost for the IFA network was “a maximum of £40m”, although there was no published breakdown of FOG’s assets including the value of its stake in 1st.
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Jonathan Boyd on 020 7484 9769 or email [email protected].IFAonline
Partner Insight: Continuing the Architas education series for clients.
What made financial headlines over the weekend?
290,000 already affected
Putting the tech into protection
Square Mile’s series of informal interviews