D+H, Misys Merger Will Create $2B Fintech Company

Vista Equity Partners will acquire Canadian financial services provider D+H, and merge it with Misys — financial software provider —  the company announced today.

The merger will create, what appears to be, a mega fintech, serving 48 of the world’s top 50 banks, among other clients, and generating about $2 billion in annual revenue — or two unicorns-worth, in startup language.

The company grappled with global private equity firm Advent for the sale, and will pay $4.8 billion—Canadian dollars, so approximately $3.5 billion U.S. dollars— a price tag that includes its debt. Overall, the merged company will serve financial institutions and clients across 130 countries.

Vista co-founder and president Brian N. Sheth said in the release:

We are thrilled by the prospect of combining these two leaders in the Fintech industry…Over the last five years we have worked closely with the Misys management team to transform and grow its global business and this is a great next step in that process. Together, Misys and D+H have the promise to shape and lead the future of financial software.

D+H specializes in lending and payments technology, including mobile retail solutions and contactless ATM technology, and mainly operates in North America. The company works with more than 8,000 financial institutions, including Canada’s largest banks.

Given its hub in London, Misys has a strong presence across Europe, though it also operates on a global scale across Asia and the Middle East. It is currently unclear whether the hub of the merged company will remain in London.

D+H CEO Gerrard Schmid said in a statement:

By combining D+H with Misys Vista will be creating a global leader in financial technology, with a broad array of products to serve customers…I believe this transaction is beneficial to our customers, shareholders and employees. We look forward to working closely with Vista and the leadership team at Misys to complete this transaction.

The acquisition is expected to officially close before the third quarter of this year.

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