- NEC Corp will purchase fintech software provider Avaloq for $2.2 billion as it expands into financial services.
- The deal will likely benefit both firms in terms of increased revenue gains.
The Japan-based technology giant stated that it’ll acquire Switzerland-based fintech software provider Avaloq from private equity firm Warburg Pincus and other shareholders, per Reuters.
NEC offers digital solutions to global clients cross-sector, including aerospace, telecoms, and finance, and plans to acquire 100% of Avaloq’s shares by April 2021. Avaloq, which offers core banking and centralized data platform solutions to its 150-plus clients, representing approximately $4.5 trillion in client assets, will continue to operate as a separate entity following the completion of the deal.
NEC has been on an acquisition spree as it seeks to maximize profits, and the latest purchase aims to expand its presence in digital finance. NEC has undergone significant restructuring over the last decade, which has involved divesting from less profitable business units, such as its semiconductor and smartphone businesses.
Concurrently, NEC has struck takeover deals of innovative technology firms, including Denmark-based IT company KMD for over $1 billion in 2018 and UK-based public-sector software solution provider Northgate Public Services for over $500 million in 2018. The Avaloq takeover will fuel efforts to drive profitability by deepening NEC’s presence within financial services globally, in conjunction with its existing biometric and blockchain digital finance solutions.
We think the acquisition will fuel sales growth for both companies because it’ll enable NEC to capitalize on financial institutions’ (FIs’) drive to digitize, while Avaloq will reach new FIs in Asia Pacific (APAC).
- FIs have scrambled to digitize their services amid global lockdowns—and acquiring Avaloq’s digital solutions will drive revenue gains for NEC. Avaloq is an industry-leading wealth
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Cordova served 22 years on active duty in the United States Navy, in the fields of electricity, electronics, and interior communications. Among his professional experience, he served eight-years as a GG-15 at the Defense Intelligence Agency (DIA), in roles that include; Secretariat for the Innovation Advisory Board, Office of the Deputy Director; Senior Program Manager for the Technology Action Group, Office of the Chief of Staff, DIA, addressing the most difficult problems of IT, Analysis, MASINT, and HUMINT. Cordova led DoD’s investments in In-Q-Tel’s (CIA’s Venture Capital arm) portfolio companies, managed DIA participation in military exercises and led the transition of several important technologies to fully qualified operational use. These efforts earned him recognition from the Director of National Intelligence (DNI) for his collaboration and leadership. Cordova also served 3-1/2 years in the Defense HUMINT Management Office, Technology Tradecraft Office, as senior program manager, deputy chief and acting chief. He also served as Chief of the DIA Contracting Office in Baghdad, Iraq, providing oversight