Private equity firm Vista Equity Partners has struck a deal to acquire D+H, a Canadian financial technology provider, with an eye to merging it with UK-based Misys to create a financial software company with $2.2 billion in revenues.
Misys, the British financial software provider, is merging with Canadian fintech rival DH Corp, months after it canned plans to float on the London Stock Exchange amid the market volatility following the UK's vote to quit the European Union.
Vista Equity will pay $25.50 per share in cash for DH Corporation, which is publicly traded as DH on the TSX.
Evergreen's role in the DH Corp deal shows how Elliott, the $31 billion multi-strategy hedge fund, shareholder activist and distressed debt investor, is seeking to increase its role in private equity deal financing.
The buyout firm is in advanced talks to acquire DH Corp., and an agreement could be announced as soon as this week, according to the people.
Other companies which were reportedly interested include the Canada Pension Plan Investment Board and US private equity firms TPG, Cerberus Capital Management LP and Thoma Bravo, Reuters previously reported.
The acquisition follows DH's appointment of a special committee in December to assess expressions of interest to buy the company.
DH Corp., founded in 1875 as Davis + Henderson, attempted to transform itself into a financial technology company from a traditional check-printing company in recent years as demand for paper checks declined.
DH Corp is used by almost 8,000 banks, governments and other entities, and has 5,500 employees and $1.6-billion in revenues. It is expected to close prior to the end of the third quarter of 2017.
Misys chief executive Nadeem Syed said the combination of the two companies gives them the opportunity to create a "global fintech powerhouse".