Report: Finastra’s Treasury and Capital Markets Unit May Be Sold

Finastra’s Treasury and Capital Markets (TCM) unit reportedly may be offered for sale.

Private equity firm Vista Equity Partners is working with global investment bank Evercore to sell the TCM unit, though Vista is still considering whether to do so, Bloomberg reported Wednesday (Sept. 18), citing unnamed sources.

Vista is in the early stages of weighing a sale, has not made a final decision, and could choose not to sell the unit, according to the report.

Reached by PYMNTS, Finastra declined to comment on the report.

Vista and Evercore did not immediately reply to PYMNTS’ request for comment.

The TCM unit could command a price of at least $2 billion, according to the Bloomberg report. It provides financial institutions with software that helps companies process trades and manage risk and compliance.

It was reported Aug. 27 that Vista was in funding discussions for its purchase of software firm Jaggaer, which was announced Aug. 13. The firm was talking with Wall Street banks and direct lenders in hopes of getting roughly $1 billion of debt financing.

When announcing the acquisition, Michael Fosnaugh, co-head of Vista’s Flagship Fund and senior managing director, said in a press release that Jaggaer provides a platform that is mission-critical for its customers.

“Jaggaer’s products serve a large addressable market benefiting from durable growth tailwinds, including customers’ increasing desire to unify direct and indirect spend management and realize the benefits of AI,” Fosnaugh said in the release.

It was reported in August that merger and acquisitions (M&A) activity remained slow during the second quarter because of high interest rates that made it tougher to finance deals.

The number of M&A deals has been below 10,000 for three of the last four quarters, with the second quarter’s number being 9,719. That was up from the first quarter but down from the second quarter of 2023.

Meanwhile, Finastra partnered with CredAble in July to enable banks to offer their corporate clients supply chain finance solutions. In this collaboration, CredAble’s supply chain finance platform has been integrated with the Finastra Trade Innovation trade services platform, creating a comprehensive trade and supply chain finance offering.