Subject to FSA and shareholder approval, Sesame’s management is to buy a 60% share in the business, with Misys retaining a 40% stake. Misys have agreed to £105m of cash and guarantee being invested in the business, with up to £90m of existing regulatory capital guarantee to be released and paid over the next eight to ten years.
News of the buyout comes as Misys announced a three to five year “turnaround programme” during which it hoped to drive the business towards providing software solutions and expanding in this area while improving the company’s financial performance. The Sesame sale means Misys Group’s annual revenues are expected to fall by around £350m, and will result in a loss on disposal of approximately £50m.
Commenting on the strategic review, Mike Lawrie, chief executive of Misys, said: “Mike Lawrie said, “The turnaround strategy will build on Misys’ strengths to create a more customer-focused business with the capacity to deliver improved returns to shareholders. There is no quick fix and the turnaround process will take 3-5 years. To help me achieve this, I have built a seasoned executive team who can execute with urgency. We are confident that we are setting out achievable goals that will deliver long term value for shareholders, customers and employees alike.”
