Kapiti's Purchase By U.K.'s Misys May Drive Expansion For N.A. Unit

As a result of Misys PLC's recent acquisition of Kapiti Ltd., New York-based Kapiti Inc. may expand its North American coverage of the trading room systems marketplace. The U.S. unit, which is now an independently operating subsidiary of Misys, has its eye on Toronto, Chicago and Miami as potential expansion locations. And with the fiscal strength of its new parent -- a U.K.-based computer software and services group -- behind it, Kapiti Inc. can now afford to look into enhancing its trading room technology product line through acquisitions.

According to Kapiti Inc. president Robert Farrington, Kapiti Ltd. agreed to merge with Misys last month specifically to raise money for acquisitions (Dealing With Technology, April 8) that would bolster its core businesses: trading room systems and international banking systems. By merging with Misys -- which is listed on the International Stock Exchange in London -- Kapiti Ltd. will have access to a potentially expandable pool of capital.

Farrington says that the merger will not change the vendor's fundamental market focus. Says Farrington: "As a company, we will certainly take a look at what synergies [between Misys and Kapiti Inc.] do exist from a technology sharing point of view and a product resell point of view -- but not to cloud up the focus on the banking and trading groups we have right now."

What's more, says Farrington, Kapiti Inc. will operate "fairly autonomously" from a staffing and product development standpoint. Farrington says that he does not expect Misys and Kapiti to cross-sell their products or integrate their technologies: "The technical teams of the various Misys companies will get together and share technology items, but I don't see us merging technologies."