Fidessary duty

20 February 2018 By Liam Proud Follow @liamwardproud

The Swiss bank-software group may buy Fidessa for 36.5 pounds a share in cash. The price looks high and returns low, unless the UK trading-tech group’s clients flock to buy Temenos products. Investors might wonder why, with revenue growing strongly, M&A is necessary.

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Swiss banking-software supplier Temenos on Feb. 20 said it was in advanced talks with Fidessa about a possible all-cash offer valuing the British trading-technology group at almost 1.4 billion pounds ($1.9 billion).

Under the proposed deal, Fidessa investors would receive 35.67 pounds per share in cash and the right to receive dividends for 2017 worth 79.7 pence.

"Should a firm offer be made ... the board of Fidessa intends to recommend its acceptance to Fidessa shareholders," the company said in a statement.

Geneva-based Temenos now has until March 20 to make a firm offer for Fidessa.

Fidessa shares were up 23 percent to 35.9 pounds at 0900 GMT on Feb. 20. Temenos shares were down 4.5 percent to 117.2 Swiss francs.

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