NEC has closed its acquisition of Switzerland-based Avaloq which is known for its digital banking solutions and wealth management technology.
The combination is expected to accelerate both companies’ long-term growth, global expansion and value creation strategy.
NEC now holds 100% of Avaloq’s shares, including the 45% previously held by private equity firm Warburg Pincus, as well as the remaining shares held by Avaloq’s founder Francisco Fernandez and by employees.
Founded in 1985, Avaloq provides powerful cloud solutions for banks and wealth managers around the globe through business process as a service (BPaaS) and software as a service (SaaS) along with on-premise solutions.
Avaloq’s vision for the future of wealth management is to maintain the human relationship an investor has with an advisor, to enhance the relationship through technology and to increase engagement and satisfaction.
As part of the acquisition, NEC has installed a new board of directors with NEC’s EVP Masakazu Yamashina as the new chairman of Avaloq.
Avaloq will continue to operate as its own entity, headquartered in Switzerland. Through the acquisition of Avaloq, NEC acquires domain knowledge in the digital finance field and enters this segment globally.
“Our joint value proposition will build on Avaloq’s reliable digital finance products and the trust it has established amongst its clients, coupled with NEC’s cutting-edge technologies, global business network and digital government domain knowledge,” said Yamashina.
Jurg Hunziker, CEO of Avaloq, said the transaction has generated much interest.
“Since the announcement of the acquisition, I have spoken to many of our clients and partners and am very happy to discover that they are just as pleased with this development as I and my fellow members of the group executive board are,” said Hunziker.
