Following the announcement a few weeks ago that it was on the lookout for further businesses in the computer services sector (CI No 1,024) Misys Plc, the Worcester-based motor insurance software specialist that snapped up BOS Group Plc and CP Programming Services Ltd during the summer, has made an agreed bid for Unlisted Securities Market-quoted Zygal Dynamics Plc. The board is offering one Misys share for every 3.07 Zygal shares, and irrevocable undertakings have been received from holders of 57.9% of Zygal’s shares. The offer values Zygal at UKP17.3m, and will result in the issue of nearly 5m new shares, representing 26.4% of the enlarged share capital. Zygal’s shares are valued at 114p and, coupled with an interim dividend of 10p upon the offer becoming unconditional, represents a 40% premium on the price at close of business last Friday. Founded in 1975 Zygal concentrates on DEC VAX-based solutions through its Coulson Heron Associates Plc subsidiary which it acquired last year, communications equipment through its Modular Technology Ltd acquisition, and distribution of printers and consumables. Misys itself came to the USM in March last year (CI No 630) offering administration, motor insurance, life insurance and pensions management packages, all of which were designed to run under the Tripos operating system on its own Motorola 68020-based Megamicros. Misys says the proposed acquisition will provide it with another core business based on the DEC range of hardware. It also does some hardware distribution through its BOS subsidiary which it intends to link with Zygal’s printer and supplies division. Without giving away too much detail the board said that both Misys and Zygal had enjoyed solid growth in the half years to November 30 and October 31 respectively, and that Misys’ BOS and CP Programming had made solid contributions.
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