Under the terms of the transaction, Fidessa shareholders will be entitled to receive £35.67 in cash for each Fidessa share, a 36.9% premium to the firm’s closing price of £26.05 on 16 February. Shareholders will also be entitled to receive and retain a final dividend and a special dividend in respect of the year ended 31 December 2017 together amounting to 79.7 pence in aggregate per Fidessa share.
The transaction, which is expected to close in the first half of 2018, values Fidessa at £1.4 billion.
The combined group will be a global behemoth, with revenues in excess of $1.2 billion and a strong presence in all major financial centres. Temenos has identified $60 million per annum in cost savings, which are expected to be fully achieved within three years post completion.
Andreas Andreades, the executive chairman of Temenos, says: “We truly believe that this powerful combination will accelerate both companies complementary growth strategies in banking and capital markets and will enable us to cross-sell into our existing client bases and capture a greater share of the IT and software spend of banks especially as they move to the cloud.”