For Swiss banking software specialist Temenos (SW:TEMN), it was almost in the bag. Fidessa (FDSA) had accepted its £1.4bn takeover offer on 21 February, and the board of the UK financial data company planned to recommend the transaction to shareholders for their approval on 5 April. That is until two rival bidders came forward at the 11th hour.
Both parties were initially anonymous, but – prompted by press speculation – Fidessa later revealed that they were ION Investment Group, an automation software specialist used by financial institutions and central banks, and SS&C, a financial services technology company. Both potential offers are at a premium to Temenos’s proposed package – which entailed, at last count, £36.467 per share in cash, including a £35.67p cash consideration and 79.7p dividend. Fidessa has not yet received proposed terms from SS&C, but ION’s possible offer would see shareholders receive £38.297p, upping the cash consideration to £37.50 and thus representing a 5 per cent premium to Temenos’s offer.
News of the developing bidding war lifted shares in Fidessa by more than a tenth, taking the closing price of 4,170p significantly higher than any offer so far. Seemingly, investors are setting their sights on an even more generous deal – but which party will prevail? For now, Fidessa has postponed its scheduled investor meeting.