Finastra explores the sale of its banking unit

Finastra, a financial technology company, has been rumoured to explore a sale of its banking unit for as much as USD 7 billion.

According to Reuters, the company is in the midst of splitting off the universal banking sector, which provides software to banks and credit unions to conduct fundamental activities, as it prepares to launch a sale process in the coming weeks.

Finastra is consulting with a financial counsel as it considers its alternatives for the company, which now generates approximately USD 1.7 billion in revenue and approximately USD 500 million in earnings before interest, tax, depreciation, and amortization.

Several private equity firms, as well as competitors in the financial software area, are among the potential buyers of the universal banking unit.

Finastra and its owner have previously explored other business models. Finastra attempted but failed to sell its capital markets business in 2021.

Vista created Finastra in 2017 by acquiring Canadian payments technology provider D+H Corp private in a USD 3.6 billion deal and merging it with Misys, a…

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