Vista mulls $2bn sale of Finastra’s capital markets division

Aug 16, 2024 | News

Vista Equity Partners, the software and technology-focused private equity firm with over $100bn in assets under management, is considering the sale of Finastra’s capital markets division, according to a report by Bloomberg.

The report cites unnamed sources familiar with the matter as revealing that the private equity firm has initiated preliminary discussions with advisers about a potential sale and may begin the formal process later this year.
 
Vista is aiming to secure a valuation of at least $2bn for the division, according to Bloomberg’s sources.
 
The TCM unit could attract interest from other financial software firms, stock exchanges and financial institutions. However, as discussions are still in the early stages, Vista might yet decide against pursuing a sale. 
In 2021, Vista explored the sale of both Finastra’s treasury and capital markets unit and its banking software division, but last year opted for a substantial refinancing of the fintech company, which saw private credit firms including Blue Owl Capital and Oak Hill Advisors provide a record $4.8bn fully funded direct loan.
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 Finastra, based in London, was created through the 2017 merger of Misys Group — which was owned by Vista at the time — and Canadian payments company D+H Corp, which was established in 1875 as a bookbinding and printing business.

 

Currently, Finastra generates approximately $1.85bn in revenue and serves around 8,100 customers, with the TCM division, which offers software solutions for financial institutions, covering trade processing, risk management and compliance, contributing about $400m to that total.

Source: Private Equity Wire 

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