Vista Equity Partners has announced the acquisition of DH Corporation and intended merger with Misys; DH Corporation is a Canadian fintech company with a full range of technology solutions for financial institutions; Misys is a UK-based firm also providing similar solutions for financial institutions globally; in January it announced a new P2P lending solution for banks, FusionBanking Crowdlending; Vista will acquire DH Corporation for approximately $4.8 billion, representing a premium of approximately 36%. Source
Vista Equity Partners has announced the intended acquisition of DH Corporation which it will subsequently merge with Misys to create one of the world's largest global fintech leaders. Under terms of the proposed acquisition, Vista will acquire all of the firm's outstanding debt and the equity shares of DH Corporation which trade on the Toronto stock exchange. Vista will pay C$25.50 (USD$19.15) per share for a total value of approximately C$4.8 billion (USD$3.6 billion).
The influence of DH Corporation and Misys is likely to be substantial. This week DH Corporation launched Total Lending™ Small Business a digital solution for financial institutions that is intended to improve the online bank lending process and customer experience for small businesses. In January Misys also announced a crowdlending technology solution that provides financial institutions with a platform for offering P2P lending.
These developments combined with a greater interest in fintech partnerships by banks overall and the potential regulatory implications for increased US bank lending in general are likely to influence the market landscape. This week Marlette Funding announced a workforce reduction and OnDeck has also significantly reduced its workforce following its recent earnings announcement. While exponential growth opportunities still exist for fintech companies, cost efficiencies continue to remain a central driver of demand. As broader solutions develop across the industry, it's likely that cost structures and a focus on tighter profitability forecasts will become increasingly important in order to navigate the changes ahead. Source
Leading global technology provider DH Corporation launched Total Lending™ Small Business to help improve the small business lending experience; this is a cloud based, mobile first application for banks and credit unions; "It's vitally important that banks embrace the kinds of technologies that will provide them with a competitive edge in todays' era of disruption," explained Duncan Hannay, president, global lending solutions, D+H. Source