Megabuyte - Technology sector intelligence

Banking software vendor Fiserv reported Q4 and FY 2011 results overnight that exceeded Street estimates on the top-line. For the quarter ended December, the company posted top line growth of 7.7% to $1.2bn, beating consensus estimates of $1.1bn. For the full year, the company reported a 4.9% jump in reported revenue to $4.3bn, in line with Street expectations. 

BT reported a slightly weak Q3 in revenue terms (down 5% headline, 3% excluding mobile termination rates), due to timing of Global Services contracts and to a faster decline in BT Retail. However, EBITDA maintained its expected 3% growth rate and the company has reiterated its EBITDA and cash flow targets. BT made no mention of its full year revenue target (currently 0% to -2%) suggesting that, with growth at -1.8% for the first nine nonths, BT may struggle to hit the full year target.

Coming hard on the heels of a weak set of interims (see Misys faces challenges in cautious times), Misys has responded to press speculation to confirm that it is in merger talks with Swiss competitor Temenos. There is very little further detail in the statement other than to say that the deal would be struck by way of an all share merger. Misys shares have opened up modestly (2%) this morning. 

It may be the consumer-facing takeover deals that get the most press: Microsoft completed the $8.5bn acquisition of IP communications provider Skype in October, and Google is now offering $12.5bn for mobile handset maker Motorola. While interesting to watch, both in terms of valuation and as indicators of which way next for the convergence trend, equally hot is the M&A scene for B2B technologies such as business management software. We look at recent deals, M&A drivers and which UK companies might be next.

Microgen appoints Whiting as Non-exec

Supplier of software to the financial services sector Microgen has announced the appointment of former IT analyst Peter Whiting as a Non-exec. Having spent much of his career at UBS, Whiting was one of the sector’s leading analysts up to 2004 when he became head of small cap research and then on to become COO for European Equity Research until he left the company in September last year.

Digital Barriers contract demonstrates organic progress

As it moves from the initial, highly acquisitive, stage of its development into a phase where organic growth is more of a focus, Digital Barriers has announced a £2.5m five month contract. There is little further news about the contract other than the fact that it is with an existing customer, but the deal is welcome evidence of traction in the push for organic growth. Having sunk to a low of around 130p late last year, shares in Digital Barriers have now recovered to 169p; still below their all time high but, importantly, above the level that the company last raised money. 

Coms shares jump as Smith ups stake

Shares in VoIP solutions providers Coms jumped over 30% yesterday as roll-up specialist Ian Smith took a 4.3% stake in the company through his SIPP. MXC Capital, the investment vehicle of which Smith is founder and CEO, already has a 23.3% stake in the company which has annualised revenues of under £3m and a market cap of just £2.5m.