Vista to buy DH Corp to combine with financial tech firm Misys

Vista Equity Partners LLC agreed to buy Canadian financial services provider DH Corp. for C$25.50 a share in cash.

Vista plans to combine DH Corp. with Misys Ltd., which it bought in 2012, according to a statement Monday. The deal values DH Corp. at about $C2.73 billion ($2.03 billion), according to data compiled by Bloomberg. Including debt, the transaction is valued at $C4.8 billion. DH Corp. shares closed at $C23.04 on Friday, giving the company a market value of about C$2.5 billion.

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. It completed a series of acquisitions to that end, including a $1.25 billion purchase of payment-technology company Fundtech Ltd. in 2015.

“We are thrilled by the prospect of combining these two leaders in the fintech industry,” Brian Sheth, co-founder and president of Vista, said in the statement. “Over the last five years we have worked closely with the Misys management team to transform and grow its global business and this is a great next step in that process.”

The deal adds to the $1.5 billion of private equity transactions involving Canadian targets this year, down from $3.1 billion during the same period in 2016, according to data compiled by Bloomberg. DH Corp. said in December it was working Credit Suisse Group AG and  Royal Bank of Canada to explore a sale.

Shares of DH Corp. have fallen 37 percent in the last year, as the decline in its check-making business accelerated faster than anticipated. The company’s services are used by 8,000 banks, specialty lenders, credit unions, governments and corporations, according to its website. It has more than 5,500 employees worldwide, with revenue of almost C$1.7 billion in 2016.

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