Vista Equity weighs sale or partnership options for Finastra amid AI uncertainty

Vista Equity Partners has engaged Morgan Stanley to begin a confidential process evaluating strategic alternatives for Finastra, the financial-software provider it created in 2017. Options under consideration include a complete sale, selling a minority stake, or merging the company with or acquiring another industry participant. Early interest has been reported from several investors, with Blackstone identified as a potential bidder.

Vista is seeking to benefit from revived market interest in fintech platforms even as AI-related uncertainties keep sector multiples low. Valuations discussed range from high-single-digit billions to as much as $12 billion, based on projected EBITDA of $650 million this year. Finastra, which serves over 80 percent of the world’s top banks, has recently narrowed its focus to payments and lending software after shedding non-core units.