Vista Equity Partners has tapped Evercore Inc. to explore a potential sale of Finastra’s Treasury and Capital Markets (TCM) division, according to sources familiar with the matter. This move comes as Vista evaluates strategic options for the fintech unit, which could potentially be valued at over $2 billion.
The TCM business, which generates approximately $200 million annually in earnings before interest, taxes, depreciation, and amortization (EBITDA), provides software solutions to financial institutions for processing trades and managing risk and compliance. While discussions are still in the early stages, Vista has not yet made a final decision and may ultimately decide against selling the unit.
Representatives from Vista and Evercore have declined to comment on the ongoing process, while Finastra has yet to respond to requests for input on the potential sale.
Finastra, based in London, was established in 2017 through the merger of Misys Group (a capital markets firm owned by Vista at the time) and Canadian payments company D+H Corp. The TCM division has since grown to offer comprehensive tools that support trade processing, risk management, and regulatory compliance for financial institutions globally.
The sale, if it moves forward, presents a significant opportunity for both Vista and potential investors. With the unit producing around $200 million in annual EBITDA, a sale price of $2 billion or more could represent a multiple of 10 times EBITDA—a favorable figure in the current fintech market environment. The high valuation could also reflect the TCM unit’s critical role in providing technology solutions to banks and financial institutions navigating increasingly complex market structures and compliance requirements.
Bloomberg previously reported in August that Vista had been consulting with advisors on a potential sale process for the unit, indicating that interest in this asset has been building. The growing demand for fintech solutions, particularly in treasury and capital markets, could attract interest from strategic buyers and private equity investors who are eager to tap into this sector’s potential for steady, recurring revenues.
This transaction could create a lucrative exit for Vista, allowing the firm to realize gains on its investment in Finastra and potentially reinvest in new opportunities. For prospective buyers, acquiring Finastra’s TCM unit could provide access to a suite of advanced software solutions at a time when digital transformation and risk management are at the forefront of financial services.
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