Misys Buys Financial Software Vendor Sophis for €435M

Misys is buying fellow financial services software vendor Sophis for €435 million (US$595 million), creating a company with products for both buy-side and sell-side purposes, the company announced Friday. The deal is expected to close before the end of February.

Buy-side is an industry term that refers to institutional investors such as mutual and pension funds. Sell-side refers to brokers and other organizations that make commissions from stock sales.

The purchase price for Sophis includes €273 million in equity value plus €162 million in net debt held by Sophis, according to a statement. Another €5 million may be payable upon the deal's closing.

With the acquisition, Misys will become "the number one application software and services provider in capital markets," the statement adds.

Misys, a London company founded in 1979, is "a real survivor," having refocused its business multiple times over the years, said 451 Group analyst China Martens via e-mail.

One potential suitor for Sophis was Oracle, which has been making a series of vertical acquisitions. If Oracle does decide to make a similar purchase, it can choose from Sophis competitors like Calypso and Murex, Martens said.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris's e-mail address is Chris_Kanaracus@idg.com