Finastra hires head of payments as company seeks buyer for capital markets arm

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Finastra provides software used in areas such as mortgages, payments and retail banking.

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Barry Rodrigues, former senior payments executive at


Barclays

and


Citigroup
,

joins Finastra, a fintech backed by Vista Equity Partners, said two people familiar with the situation.

Finastra has hired Rodrigues to run its payments business, one of the people said.

Rodrigues is the former CEO of Barclays Cards & Payments. He is also the former Head of Digital Payments at Citigroup (ticker: C) and spent 25 years at


American Express

(AXP), where he was most recently President of Global Network Services.

Vista Equity, the software-focused private equity firm founded by Robert Smith, created Finastra when it acquired DH Corp in 2017 and merged it with Misys, a portfolio company. Finastra, of London, provides software used in areas such as mortgages, payments and retail banking for many of the world’s leading banks.

Finastra is a major fintech, with approximately 8,600 customers including many of the world’s largest banks. It produces $1.85 billion in annual revenue and employs over 9,000 people.

The company, however, is heavily in debt, according to a April Fitch Ratings Report. Finastra’s debt is just under $6 billion, according to the report.

The company tried to repay this debt. In 2019 Vista tried to sell up to 50% of Finastra, valuing the fintech at $10 billion, according to reports. This sale of a stake was to lead to an initial public offering or a possible sale of the entire company. Vista Equity postponed the sale of Finastra to April 2020, at the height of the Covid-19 pandemic, Bloomberg reported that spring.

This year, Vista sought a buyer for Finastra’s capital markets business. The unit provides technology that aims to improve trading, as well as monitoring and compliance, for its customers, including major banks. The Finastra business was expected to sell for 10 to 15 times its revenue, or $3 billion to $4.5 billion, Barrons reported in July.


Swiss credit

advises on the process. The capital markets operation has attracted interest from several parties, said another person familiar with the situation.

It’s unclear whether Vista will find a buyer. As recently as November, Finastra was in exclusive talks to sell the unit to Veritas Capital, the buyout boutique that recently sold athenahealth for $17 billion, four other people said. Some said negotiations with Veritas had failed while others said the process was continuing.

Another attempt to sell a capital markets firm appears to have found a buyer.


Fidelity National Information Services

(FIS) appears to be close to reaching an agreement to sell its capital markets business to private equity firm Symphony Technology Group, Bloomberg said Nov. 24. The transaction is valued at nearly $2 billion. FIS and Symphony did not respond to requests for comment.

Write to Luisa Beltran at [email protected]