Finastra, owned by US-based investment firm Vista Equity Partners, is mulling divesting its banking unit, dubbed Universal Banking, for up to $7bn.

The UK-based financial software company is currently preparing to initiate a sale process for its banking business, in the coming weeks, reported Reuters.

Universal Banking provides core banking software solutions to banks and credit unions.

It currently generates about $1.7bn in revenue and about $500m of earnings before interest, tax, depreciation, and amortisation.

Finastra is working with a financial adviser for the sale, and potential buyers include fellow private equity firms and its rivals in the financial software, said the publication.

Vista is focused on financing and forwarding software, data, and technology-enabled startup businesses in the financial technology industry.

In August last year, the company agreed to take tax automation platform Avalara private in an $8.4bn deal and announced the acquisition of Duck Creek Technologies for $2.6bn last month.

Established in 2017, Finastra took Canadian payments technology provider D+H Corp. private in a C$4.8bn ($3.6bn) deal and then merged it with its banking and capital markets software business Misys.

In December last year, Finastra partnered with Veem, an accounts receivable (AR) and accounts payable (AP) network for small and medium-sized businesses (SMBs).

In addition, the company has partnered with Wipro to support the digital transformation of corporate banks in the Middle East.

Wipro will help banks transform and digitise the entire trade finance process, enabling automation, optimisation, faster time-to-market, and reduced customer response times.

Earlier this month, Finastra rolled out an asset liability management solution that helps small- and medium-sized banks with their balance sheet and compliance needs.

The cloud-based software-as-a-service (SaaS) solution, dubbed ALM IQ, is a platform-agnostic microservice designed to help banks with data consolidation, operational efficiency and regulatory compliance.