Vista and Evercore partner to work on selling Finastra's capital markets branch

As detailed by individuals familiar with the matter cited by Bloomberg, Vista Equity Partners is currently in the early stages of securing a sale of the TCM unit, which could allow the company to gain a minimum of USD 2 billion. At the time of the announcement, Finastra’s treasury and capital markets business generated in annual earnings before interest, taxes, depreciation, and amortisation nearly USD 200 million. The people familiar with the matter also mentioned that a final decision has not been made and Vista could choose not to finalise the sale of the unit.

Formed in 2017 via a merger between Misys Group, the capital markets business owned by Vista at the time, and Canada-based payments company D+H Corp, Finastra focuses its efforts on serving the retail banking, transaction banking, lending, and treasury capital markets. The company’s TCM arm delivers software for financial institutions that supports organisations in processing trades and managing risk and compliance.

When asked to provide an opinion on the announcement, both Vista and Evercore declined, while a spokesperson for Finastra did not immediately respond to a request for comment.

Previous news from Finastra

The current news of Vista’s plans to sell Finastra’s treasury and capital markets business follows rumours regarding the latter’s plans to sell its banking unit for nearly USD 7 billion. Back in February 2023, the firm was consulting with a financial counsel as it considered its alternatives, which then generated approximately USD 1.7 billion in revenue and USD 500 million in earnings before interest, tax, depreciation, and amortisation. At that time, several private equity companies and competitors in the financial software sector were among the potential buyers of the universal banking unit.

Vista and Evercore collaborate on selling Finastra's capital markets arm

Previous news from Finastra