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Gale leads partial MBO at Sesame

Sesame chief executive Patrick Gale is leading a partial management buyout that will see parent group Misys keep a 40 per cent stake in the business.

Gale is being supported by finance director Mark Wadelin, sales and marketing director Steve Young and customer services director Michael Couzens.

Under the proposals, the Sesame directors will take a 60 per cent stake while Misys will guarantee the funding of Sesame’s capital adequacy requirements for up to a decade.

Misys has set aside £105m to cover this, with £60m initially being pumped into the distribution group to cover its running costs and current capital adequacy requirements.

It has set aside a further £45m to guarantee that Sesame can meet its future requirements.

Misys will look to recoup up to £90m of this from Sesame over the next eight to 10 years, subject to its performance.

Last year, Sesame abandoned sale talks after no potential suitors would match its asking price.

Gale says: “This is a new era. It was the most logical step to take. Misys have made no secret that they want to focus on healthcare and banking while Sesame wanted more autonomy and control, which we now have.”

He says the difficulties experience by Sesame in terms of legacy issues over the past three years have declined significantly but declines to confirm whether the management team expects to complete a full buyout at a later date.

Gale says: “We are a profitable business and now as Misys deconsolidates it will allow people to identify the profits we generate rather than them getting lost in the overall results of the parent.”

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