LONDON (AFX) - Chief executive and founder of Misys PLC Kevin Lomax has quit with immediate effect, the software group confirmed this morning, following the collapse of management buyout talks late last week.

In an accompanying trading statement Misys warned that it expects adjusted earnings per share to fall below the 14.3 pence reported last year, blaming a handful of 'previously highlighted' factors.

Lomax was widely expected to step down after the private-equity backed group he was fronting, thought to be backed by Permira, failed to come up with an offer after three months of talks.

However the trading statement is likely to confirm fears that the private equity firms backed off after due diligence revealed the amount of work needed to rebuild some areas of the company's struggling businesses.

Previously flagged issues including the dilutive effect of the sale of its General Insurance business last May, losses from the acquisition of PayerPath and other assets and the impact of exchange rates on its US Healthcare business will hit EPS, it said. An increase in average US interest rates was also cited.

The company said its banking division and Sesame business have traded in line with expectations and ahead of last year during the first three months of the year.

Like-for-like revenues for the healthcare division, thought to be a weak spot in the business, are in line with last year and internal forecasts and, including revenue from PayerPath, show 'modest growth' over last year.

Meanwhile, the group said this morning the decision for Lomax to leave has been taken 'in the best interests of the company', and follows talks with chairman Sir Dominic Cadbury.

The independent committee of directors, which was overseeing the offer process, has been in talks with potential external candidates for some time and hopes to announce a replacement as soon as the middle of October.

The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

This is cache, read story here