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Finastra explores sale of banking business - Reuters

Fintech giant Finastra could be ready to sell its universal banking business for up to $7 billion, according to Reuters, citing sources.

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Finastra explores sale of banking business - Reuters

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The company, owned by Vista Equity Partners, is working with a financial adviser as it gears up for a sales process in the weeks ahead, says Reuters. However, talks are at an early stage.

The unit makes about $1.7 billion in revenue and $500 million Ebitda, according to people familiar with the matter.

Finastra was created in 2017 when Vista acquired Canadian payments firm D+H and merged it with core banking player Misys.

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Comments: (4)

A Finextra member 

This is the third time that Vista have tried to sell Misys in the last seven years. The merger with D+H was made after the second failure.

A Finextra member 

Interesting in that it is just the Universal Banking business, not lending, payments, TCM etc.  I bet that the $1.7b rev / $500m EBITDA is pretty much flat year on year though as there doesn't appear to be much new name / new business growth in that space?  Anyone got any thoughts on growth numbers over attrition from an ageing, existing customer base?

A Finextra member 

3rd try to get in rid of the legacy banking technology - from my point of view much over priced for a an outdated product set in a highly competitive market with a yearly growth rate of 4 %.

A Finextra member 

Since the merger with Misys & D+H Finastra heavily invested in the integration of their back-office systems (AR/AP, invoicing, administration, HR, etc.) I’m interested in to get to know how much the disentangling costs would be.

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