Finastra, the London-based financial software company owned by Vista Equity Partners, is preparing the sale of its Middle Eastern and Asian core banking division, in a deal that could be valued at over $1bn, according to a report by Reuters citing unnamed people familiar with the matter.
The unit, which supports banks and credit unions with core processing software, is expected to deliver around $100m in EBITDA this year. Vista has hired Arma Partners to advise on the potential transaction, with a sale process anticipated later in 2025.
Private equity buyers are expected to be among the key contenders, alongside strategic software rivals. If completed, the divestment would mark Vista’s second major carve-out from Finastra this year, following the sale of its Treasury and Capital Markets business to Apax Partners in May, which helped reduce debt.
Vista created Finastra in 2017 by merging D+H Corp, acquired in a CAD4.8bn take-private, with its existing portfolio company Misys.
