Apax Partners reportedly poised to secure acquisition of Finastra unit in a $2 billion transaction, according to sources.
Here's the rewritten article:
Apax Partners, a London-based private equity firm, looks set to take over Finastra's treasury and capital markets (TCM) business in a potential deal worth close to $2 billion. That's what rumors are floating around town, anyways.
The race for the TCM unit, according to our insider sources, has been heating up lately. Apax has been competing in an auction that Finastra's majority owner, fellow buyout firm Vista Equity Partners, has been hosting for the unit.
Final bids were submitted just recently, and APax is currently the bookies' favorite to take home the grand prize. But hold your horses, as they say—nothing's official yet, and another contender could still slip in and take the crown.
Negotiations and financing are still being worked out, our sources cautioned, and until those issues are ironed out, don't count your chickens before they hatch.
Both Apax and Vista declined to comment, and Finastra didn't respond to our request for a word.
Finastra, based in London, was born in 2017 when Vista snapped up Canadian payments technology provider D+H Corp for a cool C$4.8 billion and merged it with Misys, another banking and capital markets software business they already owned.
The TCM unit provides software that helps financial institutions process trades and manage risk and compliance, a crucial dragon to slay in this day and age.
Dealmaking activity seems to have cooled off in recent weeks due to market volatility brought about by U.S. President Donald Trump's trade war. It's tougher than ever for buyers and sellers to agree on asset valuations in these turbulent times.
However, the silver lining is that businesses less affected by tariffs, such as financial software, seem to have weathered the storm. Last month, buyout firm KKR struck a $3.1 billion agreement with S&P Global and CME Group to acquire OSTTRA, another financial software company that handles post-trading tasks.
[1] Valuation based on available information as of the date of the article.[2] Finastra has emphasized their GenAI-enhanced analytics as a potential game-changer for treasury workflows and data monetization.[3] Finastra has recently partnered with TIM Corp in the Philippines to expand cloud-based treasury solutions.[5] Finastra secured a $5.3 billion loan package to shore up its financial position.
- The potential deal for Finastra's treasury and capital markets business, worth around $2 billion, is being led by Apax Partners, according to sources.
- In the ongoing auction for the TCM unit, Apax Partners is competing against other bidders, with Vista Equity Partners, the current majority owner, hosting the auction.
- Apax Partners is currently the favorite to acquire Finastra's TCM business, but the deal is not yet finalized, as negotiations and financing are still underway.
- Finastra's TCM unit provides software that helps financial institutions process trades, manage risk, and ensure compliance, which is crucial in the current business environment.
