* Vista offers C$25.50/share in cash
* DH Corp shares up 8.9 pct, trading at C$25.10
(Adds shares, background)
By Ahmed Farhatha
March 13 U.S. investment firm Vista Equity
Partners said on Monday it would buy Canada's DH Corp in
a deal valued at C$4.8 billion ($3.6 billion), highlighting the
growing interest in companies specializing in financial
Vista will combine DH with one of its portfolio companies,
UK-based financial software firm Misys, which scrapped a planned
London listing last year.
Shares of DH were up 8.9 percent at C$25.10 in afternoon
trading on the Toronto Stock Exchange.
Vista's acquisition of DH is the largest takeover of a
Canadian company by a foreign firm since December 2014, when
Spain's Repsol agreed to buy oil producer Talisman
Private equity firms and financial institutions are
increasingly spending money on fintechs - companies that use
technology to revamp business transactions - in the expectation
that innovations will transform the financial services industry
in decades to come.
Venture capital-backed investment in Canadian fintechs hit
its highest level in almost two decades last year, even as the
flow of funds into major fintech markets like the United States
declined, according to sector data.
Vista offered C$25.50 in cash for each DH Corp share, an 11
percent premium to the stock's Friday close.
Formerly Davis + Henderson Corp, DH has transformed itself
from a cheque printing company into a provider of payment and
DH has close to 8,000 customers, including Canada's five
biggest lenders and more than half of the world's 50 largest
The deal follows DH's appointment of a special committee in
December to assess expressions of interest to buy the company.
DH shares, which dropped to a record low last November, have
since risen over 64 percent in anticipation of an acquisition.
Credit Suisse and RBC Capital Markets are financial advisers
to DH while Stikeman Elliott LLP and Cravath, Swaine & Moore LLP
provided legal counsel.
Morgan Stanley, Barclays and Citi are financial advisers to
Vista Equity. Kirkland & Ellis LLP and Goodmans LLP provided
($1 = C$1.34)
(Reporting by Ahmed Farhatha in Bengaluru; Editing by Savio
D'Souza and Sai Sachin Ravikumar)