Financial technology provider Finastra is looking to sell its banking unit for up to $7bn, Reuters has reported citing unnamed sources

The London-headquartered fintech is separating the business and is expected to initiate the sale process in the upcoming weeks, the sources said. 

Called universal banking, the business provides software solutions to banks and credit unions to run their core operations. 

The business is said to generate around $1.7bn in revenue and approximately $500m in earnings before interest, tax, depreciation, and amortisation.

Finastra, which is owned by private equity firm Vista Equity Partners, has roped in financial advisers as it explores the sale of the business, they added. 

According to the sources, rivals in the financial software industry as well as other private equity firms could purchase the universal banking division.

The considerations are at an early stage and there is no guarantee that a deal will materialise, they warned. 

Requests for comments from Finastra and Vista went unanswered.

Finastra was formed in 2017 following a merger between British fintech Misys and Canadian payment technology provider D+H, which was acquired by Vista Equity. 

In recent years, the financial technology sector has seen a lot of activity from Vista Equity.

Last August, Vista Equity acquired tax compliance automation provider Avalara in a deal valued at $8.4bn.  

Most recently, the private equity firm agreed to take insurtech Duck Creek Technologies private in a $2.6bn deal