Avaloq Announces Completion of Acquisition by NEC

Avaloq, a Swiss-based banking software provider, announced that NEC Corporation's acquisition of Avaloq has successfully completed. 

This acquisition was first announced in October 2020. Following receipt of the relevant regulatory approvals, the acquisition was completed on 22 December 2020. 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.

With more than 120 years of expertise, NEC is a leader in the integration of IT and network technologies that benefit businesses and people around the world. Listed on the Tokyo stock exchange, NEC is a truly global organization with office locations in more than 50 countries.

As part of the acquisition, NEC Corporation has installed a new Board of Directors with NEC's Executive Vice President, Masakazu Yamashina, as the new chairman of Avaloq. Along with a new chairman, there will be four new members to the board, namely Tomoki Kubo, Tomonori Hira, Daichi Iwata and Asako Aoyama. Francisco Fernandez and Peter Schöpfer will remain members of the board of directors of Avaloq Group AG.

Avaloq will continue to operate as its own entity, headquartered in Switzerland, and clients will continue to enjoy the high level of service they have grown used to. This transaction will not lead to a divestment in any of Avaloq's key regions or offerings, and the management is fully committed to Avaloq's growth story.

Masakazu Yamashina, Executive Vice President of NEC and new chairman of Avaloq, said: "With its 35-year heritage and focus on innovation in digital banking solutions, core banking software and wealth management technology, Avaloq is uniquely qualified to launch NEC into the Digital Finance field, which together with Digital Government, is one of the pillars for building NEC's global growth."

Jürg Hunziker, CEO of Avaloq, said: "Avaloq will be entering a new era together with NEC. This transaction has generated much interest and we truly believe that NEC is the best partner for our business. Our solutions will only evolve for the better when leveraging NEC's proven expertise with technologies related to Digital Identity, Artificial Intelligence, Verification, Blockchain, Cybersecurity, and Biometrics. I am very much looking forward to starting this new part of our exciting growth journey together with NEC."