UK-based private equity firm Pollen Street Capital has announced its acquisition of Finastra’s global core banking software business, Universal Banking (UB). The financial terms of the deal were not disclosed by either firm. Finastra is a global financial software company, and its Universal Banking (UB) business provides essential services including account and deposit management, payments, lending, and treasury operations to financial institutions. Following the acquisition, UB will operate as an independent business, retaining its existing management structure.
This strategic move follows Finastra’s recent efforts to streamline its operations and divest certain assets. Last year, the London-based software company sold its Treasury and Capital Markets division to Apax Partners, utilising the proceeds to fully repay debt and accelerate dividends, according to ratings agency Fitch. Additionally, Reuters reported in September that Finastra was exploring the sale of its Middle Eastern and Asian core banking unit, a transaction that could potentially fetch more than A$1.5 billion (US$1 billion).
For Pollen Street Capital, the acquisition aligns with its core strategy of investing in specialist financial services and technology businesses. This trend reflects a broader pattern of private equity firms increasingly targeting UK-based companies, often due to their comparatively lower valuations. Finastra itself was established in 2017 when US private equity firm Vista Equity Partners took Canadian payments technology provider D+H Corp private in a C$4.8 billion (approximately A$5.5 billion) deal, subsequently merging it with Misys, a banking software business already owned by Vista.
