Pollen Street Capital has announced the acquisition of Universal Banking, Finastra's global core banking software business serving more than 150 customers across 100 countries.
UK-based Pollen Street Capital has announced it will acquire Universal Banking (UB), the global core banking software division of Finastra. UB provides core banking technology covering account and deposit management, payments, lending, and treasury operations for retail, commercial, and corporate banks, including global and regional financial institutions, digital banks, Islamic banks, and building societies across more than 100 countries. The transaction remains subject to customary regulatory approvals, following which UB will operate as an independent business led by its existing management team.
At the centre of UB's offering is Essence, a cloud-first, open banking platform designed to help financial institutions modernise legacy systems and progressively adopt modern technology alongside existing infrastructure.
Strategic rationale and investment focus
For Finastra, the divestiture enables a sharper focus on its payments and lending businesses. For Pollen Street, the acquisition aligns with its strategy of investing in specialist financial services and technology businesses with established customer relationships and growth potential in defined market segments.
Pollen Street's backing is intended to fund product investment, including generative AI and data capabilities, strengthen customer delivery, and expand UB's capabilities as a standalone business. The core banking modernisation market remains active, with financial institutions increasingly seeking to replace or supplement legacy systems without disrupting critical operations - a transition that UB's coexistence approach is designed to support.
Arma Partners acted as financial adviser to Finastra and Vista Equity Partners, with Kirkland & Ellis as legal adviser. Nomura acted as financial adviser to Pollen Street and Clifford Chance as legal adviser.
No financial terms have been disclosed.
