PE firm Pollen Street to acquire Finastra’s core banking software unit

June 19 (Reuters) – UK-based private equity firm Pollen Street Capital on Friday said that it will acquire financial software company Finastra’s global core banking software business Universal Banking (UB).

The firms did not disclose the terms of the deal.

Here are some details: 

• UB provides banking services including account and deposit management, payments, lending and treasury operations to financial institutions, and will operate as an independent business under its existing management following the deal.

• Reuters reported in September that Finastra was exploring a sale of its Middle Eastern and Asian core banking unit in a transaction that could fetch more than $1 billion.

•  Finastra last year sold its Treasury and Capital Markets division to Apax Partners, using proceeds to fully repay debt and accelerate dividends, according to rating agency Fitch.

• The London-based software company was created in 2017 when U.S. private equity firm Vista Equity Partners took Canadian payments technology provider D+H Corp private in a C$4.8 billion ($3.5 billion) deal and merged it with banking software business Misys, which Vista already owned.

• The acquisition reflects Pollen Street’s strategy of investing in specialist financial services and technology businesses, coming as private equity firms increasingly pursue UK-based companies due to their relatively lower valuations.

(Reporting by Simone Lobo in Bengaluru; Editing by Kirsten Donovan)