Insider Media Limited

Misys, the Warwickshire-based software provider, has acquired global software vendor Sophis. Dublin-based Sophis was bought for a total enterprise value of £375m, after the company accumulated £140m of net debt.

A further £4m may be payable on the closing of the deal, subject to Sophis’ performance.

The deal was financed through a sale of part of Misys’ remaining shares in healthcare network Allscripts. The company also funded the purchase through new increased credit facilities and a new convertible bond.

Misys has agreed new and increased credit facilities of £280m with five major banks - Bank of Ireland, Barclays Corporate, HSBC, The Royal Bank of Scotland and Yorkshire Bank.

Sophis has an annual revenue of €74m and operating profit before interest and tax of €30m in the year ended 31 December 2009.

Mike Lawrie, Misys’ chief executive, said: "I am delighted to announce this significant acquisition that progresses Misys further in the Leadership phase of its transformation. Today we are creating the leading application software and services provider in capital markets.

"Sophis has considerable financial strength and will be significantly accretive to our earnings per share in our next financial year, to 31 May 2012.

"In addition, today we announced the launch of a return of £670m to our shareholders."

The acquisition is subject to Misys shareholder approval and completion is expected before the end of February 2011.

HSBC Midlands Corporate team acted as agent and co-ordinator for Misys on the deal.