Payments provider ACI Worldwide ACIW.O is exploring a sale of its billing division, according to three people familiar with the matter, as strong investor demand for payments software and recurring-revenue businesses fuels dealmaking across the sector.

The company is working with investment bankers on the divestment and has started preliminary conversations with potential buyers, which include private equity firms, said the sources, who requested anonymity to discuss confidential matters.

A sale could value the billing division at about $1.5 billion, around 10-12 times its 2025 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA), the sources said, cautioning that deliberations are ongoing and no deal is certain. ACI, which has a market capitalization of about $6 billion at Thursday’s closing, would be left focused on its payments software business following any divestment.

ACI’s billing division provides software that helps companies bill customers and collect payments digitally. Its clients include utilities, telecom operators, healthcare providers, insurers and government agencies such as the Internal Revenue Service, Blue Cross Blue Shield affiliates, Akron Utilities, and Horizon Healthcare Services.

Representatives for ACI did not respond to a request for comment on the deliberations.

Last year, ACI combined its banking and merchant businesses into a single payment software segment, saying the move would simplify its operating structure and improve execution. The company’s billing operation, however, remained a separate reporting segment.

The billing division generated about $818 million of revenue and $141 million of adjusted earnings before interest, taxes, depreciation and amortization in 2025, according to the company’s annual filing.

Last month, payments provider Nuvei, backed by Advent International, agreed to acquire payments company Payoneer for $2.75 billion.