UK banking software outfit Misys has edged closer to a merger with Swiss rival Temenos.

In a statement issued yesterday, Temenos said: "Further to the announcements made on 3 February 2012, Temenos and Misys today confirm that they have reached agreement in principle on certain key terms and are in continuing discussions regarding a possible all share merger of the two groups. They believe that the combination would create one of the leading companies in the financial services software industry with the prospects for long-term growth underpinned by increasing demand amongst financial institutions for improved efficiency and customer service."

"The combined business is expected to benefit from enhanced scale and growth prospects, supported by a global, blue-chip customer base. Temenos and Misys believe that Temenos’ presence in banking, wealth management and business-intelligence complements Misys’ presence in core and transaction banking, treasury capital markets and lending," it added.

The merger would see shareholders of the UK firm take 53.9 per cent of the combined group and the Swiss outfit the remaining 46.1 per cent. Guy Dubois, currently CEO at Temenos, would act as CEO of the combined group, with Stephen Wilson, currently CFO at Misys, taking on the role of CFO. They would also become members of the Board of Directors, to be be chaired by Andreas Andreades, currently Temenos chairman. Mike Lawrie, chief executive at Misys, will be leaving the company.

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