Misys divested itself of eight businesses in its information systemsnce and banking in preparation for 2000. division to focus on providing software and services to the healthcare, insurance and banking sectors.
As revealed in last week's PC Dealer, Misys sold off CP Business Solutions, Enterprise Business Systems, Independent Computer Company (ICC), Innsite Hotel Services, Mentor Systems, Red Sky Software, Syntech and Specialist Business Systems, as part of a #29.7 million management buy-in, backed by Kleinwort Benson Development Capital.
Kevin Lomax, chairman of Misys, said: 'The sale is in line with our policy of increasing focus on financial services and healthcare.'
The businesses, which provided specialist software applications to the contracting, construction, travel, hotel services, manufacturing associations and commercial markets, contributed #4.1 million to Misys' #100 million profit for the year ended 31 May 1998.
Misys officials stated that the cash injection will be used to repay existing bank debts.
Following the divestiture, Misys' information systems division now comprises Strategix Solutions, Global Business Systems and Sigmex, enabling it to maintain an international presence in the manufacturing, accounting and meteorological sectors.
Misys will also strengthen ties with its banking and securities, healthcare and insurance sectors.
According to Lomax, the banking and securities division, which accounted for 71 per cent of Misys' operating profit for the half, benefited from expenditure on both year 2000 and the euro to achieve #158 million revenue.
Even as 2000 approaches, Lo-max expected the growth trend to continue as banks increase efforts to purchase systems from external suppliers.
'There is raised confidence that any reluctance by banks to implement significant changes to core systems immediately before or after the year 2000 should not adversely affect prospects for the next financial year as a whole,' he added.
While the growth rate of IT spending by the banking industry is forecast to reduce to more normal levels after 2000, banks will need to increase the proportion of spending on IT projects aimed at reducing costs and increasing revenue.
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