Exclusive-Vista Equity exploring strategic options for financial software provider Finastra, sources say

By Amy-Jo Crowley and Milana Vinn

LONDON/NEW YORK, Sept 14 (Reuters) - Private equity firm Vista Equity Partners is exploring strategic options for Finastra which could include a potential sale of the software provider focused on financial institutions, four people familiar with the matter said.

The buyout group is working with investment bankers at Morgan Stanley on the process, which is in its early stages and could include a full sale of the company but also may result in Vista divesting a stake or Finastra merging with or acquiring another industry player, said the sources.

Finastra has already attracted initial interest from parties including other investment firms, the sources said. Blackstone is among prospective bidders studying the company, one of the sources added. 

The sources cautioned there was no certainty the process will result in a transaction, and spoke on condition of anonymity to discuss private deliberations.

Vista, Finastra, Morgan Stanley and Blackstone all declined to comment.

Vista is seeking to capitalize on renewed investor interest in financial software assets, even as valuations in the sector continue to struggle amid uncertainty over how artificial intelligence could disrupt business models and profitability.

Two of the people said Finastra could be valued at more than high-single-digit billion dollars, while a third person said traditional earnings multiples for a specialized software company would value Finastra as high as $12 billion. The company expects to generate earnings before interest, tax, depreciation and amortization of $650 million this year, the third source said. 

London-headquartered Finastra provides software used by banks and other financial institutions for payments, lending, and corporate banking operations. The company was formed in 2017 by Vista through the combination of Misys and Canada's D+H and serves thousands of financial institutions globally, including more than 80% of the world's top banks, according to its website.

The business has undergone a significant transformation since Chris Walters was appointed chief executive in January 2025, with units shed to better focus on its core competencies of payments and lending software.

This included selling Finastra’s treasury and capital markets business to buyout firm Apax Partners, which was rebranded as Teciem upon completion of the deal in February. Finastra also agreed in June to sell its universal banking business to Pollen Street Capital.

(Reporting by Amy-Jo Crowley in London and Milana Vinn in New York, editing by Anousha Sakoui, David French and Nia Williams)