FinastraThe Treasury and Capital Markets (TCM) unit of . could be offered for sale.
Private equity company Vista Equity Partners works with a global investment bank Evercore sell the TCM unit, although Vista is still considering whether to do soBloomberg reported Wednesday September 18, citing anonymous sources.
Vista is in the early stages of weighing a sale, has not made a final decision and may choose not to sell the unitaccording to the report.
Reached by PYMNTS, Finastra declined to comment on the report.
Vista and Evercore did not immediately respond to PYMNTS’ request for comment.
The TCM unit could cost at least $2 billion, according to the Bloomberg report. It provides financial institutions with software that helps businesses process transactions and manage risk and compliance.
It was reported on August 27 that Vista was in financing discussions for its purchase of a software company Jaggaerwhat was announcement August 13. The company was talking to Wall Street banks and direct lenders in hopes of securing approximately $1 billion in debt financing.
When the acquisition was announced, Michael Fosnaughco-head of Vista’s flagship fund and senior managing director, said in a statement press release that Jaggaer provides a mission critical platform for its customers.
“Jaggaer’s products serve a large addressable market benefiting from sustainable growth drivers, including customers’ growing desire to unify direct and indirect spend management and leverage the benefits of AI,” Fosnaugh said in the press release.
This was reported in August that merger and acquisitions Activity (M&A) remained slow in the second quarter due to high interest rates that made it more difficult to finance transactions.
The number of M&A deals has remained below 10,000 in three of the last four quarters, with the second quarter figure being 9,719. This is up from the first quarter but down from the second quarter 2023.
In the meantime, Finastra in partnership with Credible in July to allow banks to offer their business customers supply chain finance solutions. As part of this collaboration, CredAble’s supply chain finance platform has been integrated into Finastra Commerce Innovation trade services platform, creating a comprehensive trade and supply chain finance offering.