Misys CEO Is Out After Talks To Sell Company Break Off
Posted October 2, 2006
RALEIGH, N.C. — The chief executive officer of
parent company in London is out after negotiations to possibly sell the company broke down.
Misys plc said in a statement Monday that CEO Kevin Lomax had "stepped down" and also had left the company's board "with immediate effect".
Dominic Cadbury, chairman of Misys, will take over as acting CEO, the company said.
Lomax had been involved in talks to see the software company. As of Friday, Misys said that it "had not received any offer".
Lomax, who founded the company, reportedly was involved in a management-led effort to acquire Misys. Misys develops software primarily for banks, hospitals and medical practices.
Shares of Misys, which are traded on the London stock exchange, fell 18 percent on the news to $3.47 in U.S. dollars.
Misys Healthcare, which focuses on medical practice software, has some 780 employees in the Triangle.
"We recognise that the last few months have been an unsettling time for employees," Cadbury said in a statement. "Now that the offer period has ended, the priority for the entire Board is to take the group forward and to provide excellent service to customers. The Board has confidence in the long term value and future prospects of Misys."
In the same announcement, however, Misys warned that due to a number of reasons "we expect adjusted (earnings per share) for the current financial year to be lower than last year."
A spokesperson for Misys Healthcare in Raleigh had no comment on the situation, pointing to the statement issued by Cadbury.
To read the statement, see: