Misys fails to sell Sesame unit

Misys fails to sell Sesame unit

Shares tumble as talks reach impasse

UK software firm Misys has failed to agree a price with potential buyers of its Sesame financial support services arm.

The ending of talks about a potential deal prompted a fall in the firm's shares on Thursday.

"The board has concluded that it is not possible to achieve a sale price for Sesame that reflects good value for the business in relation to its asset value and long-term prospects," said Misys in a statement.

"Consequently, the board believes that it is not in shareholders' interests to proceed with a sale at this time."

Shares were down six per cent, valuing the company at around £1.1bn.

Misys is in the process of restructuring its business, selling off non-core activities to focus on its key areas of "health and wealth".

The company has, however, announced the sale of its general insurance broking systems business to private equity firm Montagu Private Equity for £182m in cash.