3i looking to offload SmartStream stake

Private equity firm 3i Group is looking to sell its majority stake in UK fintech vendor SmartStream Technologies, according to wire reports citing anonymous sources.

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3i looking to offload SmartStream stake

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Citing unidentified "industry sources" the AFX wire service is reporting that the sale of 3i's stake in SmartStream could fetch up to £100 million.

The equity firm led a management buyout of the vendor in 2000 during exuberant market conditions in a deal valued at £122 million, with 3i investing £76 million.

According to the report, 3i has approached Misys twice about selling its stake, most recently in March of this year. The firm was rumoured to be looking for around £80 million for its holding, but Misys thought the price was too high.

The equity firm is also thought to have approached other private equity and asset management firms, including HG Capital, about selling the stake.

Smartstream has over 1100 customers, including 75 of the world's top 100 banks, who use the vendor's technology to match trades and correct errors during transactions.

Earlier this month Smartstream announced 'record' full-year results, helped by strong software licence sales, but did not reveal any figures.

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