Temenos, a Swiss banking software company, has revealed in a statement that it is in advanced talks to buy UK-based trading software provider Fidessa in an all cash deal worth £1.41bn.
Should Fidessa accept the offer, the firm will receive £35.67 in cash per share from Temenos, a significant 25.1% premium on its unaffected share price.
Fidessa has stated that it intends to accept an offer, however, there is no guarantee that one will be made at this point.
“Should a firm offer be made pursuant to Rule 2.7 of the Code by Temenos at the level of the Possible Offer, the Board of Fidessa intends to recommend its acceptance to Fidessa shareholders,” Temenos said.
“There can be no certainty that any offer will ultimately be made for Fidessa.”
Off the back of the announcement, Fidessa’s shares reached an all-time high of £29.15 per share, reflecting a market capitalisation of £1.1bn.
Further, the proposed acquisition seems a strategically sound move from Temenos, with Fidessa having recently revealed strong performance last year with a 7% jump in its revenue to £353.9mn.