The banking software company Misys is poised for a stock market return that could value the company at £5.5bn, four years after it was bought by the US private equity firm Vista.
In potentially the biggest flotation on the London Stock Exchange this year, Misys said it was targeting an initial public offering in early November.
The London-based company was delisted in 2012 when Vista bought it for £1.27bn and merged it with Turaz, the former treasury and risk management software division of Thomson Reuters.
Nadeem Syed, Mysis’s chief executive, said it was the right time for the business to return to the stock market, because of the sweeping regulatory changes facing its banking and financial services customers.
“We are in a unique position. We provide mission critical systems to customers who have to react to these changing requirements.”
He said he was confident the float would be successful despite the uncertainty created by the Brexit vote, because investors understood the opportunities. “So far the feedback has been positive. We look forward to the next chapter in our growth.”
Syed said London would retain its status as a key financial market. “London is our backyard. We don’t anticipate that London will be any less relevant.
“We are a global company, no single country generates more than 13% of revenue.”
Syed said the business was in better shape now than four years ago when it was last a quoted company, more profitable and with faster revenue growth.
“There has been a massive transformation of the business over the last four years. The only thing that is the same is the name on the door,” he said.
Misys said the £500m it expected to raise from the floatation would be used to reduce debts, affording the company greater financial flexibility to invest in products and staff. At least a quarter of shares will be sold.
Syed said: “The return to public markets as a larger, more innovative and more effective company is a logical step in our evolution. We are confident in the significant growth opportunities for the business.”
Misys was founded in 1979 as a computer systems supplier to UK insurance brokers and was first listed on the London Stock Exchange in 1990. It now employs more than 4,600 people and has about 2,000 customers in 125 countries.
The company said clients include 48 of the world’s top 50 banks by asset size. Misys generated revenue of €811m (£713m) in the year ending 31 May 2016.
This article was written by Angela Monaghan, for theguardian.com on Thursday 6th October 2016 14.10 Europe/Londonguardian.co.uk © Guardian News and Media Limited 2010