Relocation to Worcester threatens jobs and heartens potential buyers
Misys' decision to move its general insurance division from Peterborough to Worcester has sparked renewed acquisition interest from its rivals.
Insurance software specialist Sirius Financial Systems chief executive Mike Dodd said: "The Misys general insurance customer base is one that we could find very attractive to acquire.
"We are winning a lot of their bigger customers at the moment and would always be interested in talking to Misys about a buy-out."
The shake-up at Misys will see Countrywide and Equip operations moving to Worcester in what is being called "preparation for future growth". Misys senior management insist the move is not cost driven.
Misys chief executive Phillip Bell said: "We aim to grow the business and Worcester is the ideal location. By building on our solid partnerships with leading insurers and by operating from a single site, we will be able to give our brokers unrivalled levels of support, particularly in terms of forthcoming FSA compliance."
But the news follows less than a year after a buy-out of Misys
Claims Management by The Rubicon Corporation and has added to speculation that the company may off-load its insurance arm.
If most of Misys's Peterborough staff decide not to move, the relocation could result in a wholesale restructuring of the workforce. All 30 employees will be offered financial and advisory support to relocate. The company was not revealing how many have expressed an interest.
Misys marketing manager Aldam Mills said: "We are encouraging everybody to move to Worcester, but it is too early to say how many people will take up the offer. We hope that we would be able to maintain service levels to all our existing customers throughout the move with minimum disruption."