Tag: Avaloq

06
Oct
2020
Posted in software

NEC Corp is purchasing Avaloq as it expands into financial services

  • 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.

Top global wealth managers' view on their digital transformations

NEC Corp will purchase Avaloq as it expands into financial services.

Business Insider Intelligence


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
05
Oct
2020
Posted in technology

NEC snaps up Swiss digital banking solutions provider Avaloq in $2.2 billion deal

NEC has agreed to acquire Avaloq in order to secure a global pathway into the digital payments market. 

Announced on October 5, the deal will bring Avaloq under the Japanese IT group’s umbrella, although Avaloq will continue to operate using its own brand. 

Under the terms of the agreement, NEC will pay CHF 2.05 billion, or approximately $2.23 billion, for 100% of Avaloq shares. At present, 45% is owned by global private equity firm Warburg Pincus, whereas the rest are held by the firms’ founders and employees. 

Founded in 1985, Avaloq is an IT solutions company now specializing in banking, wealth management, and the digital payments space. The firm has developed business process as a service (BPaaS) and software as a service (SaaS) cloud solutions for banks and financial organizations. 

See also: Infosys acquires GuideVision in European services push

Headquartered in Switzerland, Avaloq is listed on the Tokyo stock exchange (TYO) and has a presence in over 50 countries. 

Avaloq has traditionally served high-end wealth managers and private banks but intends to “democratize” this area in the future by expanding to include “affluent investors” rather than just high net-worth individuals. 

“Clients will continue to enjoy the high level of service they’ve grown used to,” Avaloq says. “This transaction will not lead to a reduction in workforce and the management remains fully committed to Avaloq’s growth story.”

While NEC is the provider of a range of IT solutions in industries spanning from aerospace to data analytics, by picking up a company already established worldwide in banking technology, the organization will add digital finance to its bow — as well as the ability to enter this market on a global scale. 

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The news comes on the heels of

05
Oct
2020
Posted in software

NEC to buy Swiss financial software firm Avaloq for $2.2 bln

Adds context, background

TOKYO, Oct 5 (Reuters)Japan’s NEC Corp 6701.T said on Monday it had agreed to buy Swiss financial software company Avaloq Group AG for 2.05 billion Swiss francs ($2.2 billion), a move that will spearhead its entry globally into digital finance software.

The deal is expected to be completed by April 2021 after necessary approvals, NEC said in a statement. Source text for Eikon:

Privately-held Avaloq, the top provider in Europe of financial asset management software, reported sales of 610 million Swiss francs ($664 million) last year, 70% of which came from Europe.

NEC has spent the last decade restructuring unprofitable units that lost business to price-competitive Asian rivals, selling its semiconductor, personal computer and smartphone units.

The company has since focused on providing governments and businesses with solutions services using its technologies in biometrics, healthcare, data analyses and telecommunications.

It recently received a 64.5 billion yen ($560 million) investment from Japanese telecoms company Nippon Telegraph and Telephone (NTT) 9432.Tto beef up its efforts to develop fifth-generation (5G) wireless technologies.

($1 = 0.9184 Swiss francs)

(Reporting by Chris Gallagher and Makiko Yamazaki; Editing by Muralikumar Anantharaman and Jane Wardell)

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04
Oct
2020
Posted in software

NEC to buy Swiss software firm Avaloq for $2.2 billion

TOKYO (Reuters) – Japan’s NEC Corp 6701.T said on Monday it will buy Swiss financial software company Avaloq Group AG for 2.05 billion Swiss francs ($2.2 billion), a move that will spearhead its entry globally into finance software.

NEC will acquire unlisted Avaloq, Europe’s top provider of financial asset management software, from Avaloq’s founder and employees and private equity firm Warburg Pincus, which has a 45% stake and engineered the sale.

Avaloq, whose customers include Deutsche Bank DBKGn.DE and HSBC HSBA.L, reported sales of 610 million Swiss francs ($664 million) last year, 70% of which came from Europe.

The deal will allow NEC to offer cloud services acquired through the merger combined with its own biometrics and data analysis products to financial institutions and governments as digitalisation gathers pace.

It has spent the last decade restructuring unprofitable units that lost business to price-competitive Asian rivals, selling its semiconductor, personal computer and smartphone units.

NEC said it will target Japan, where financial institutions have been slow to move online and new Prime Minister Yoshihide Suga has pledged to modernise outdated government systems.

“Japan is lagging in financial digitalisation and this will be a big trend,” Chief Executive Takashi Niino told a news briefing.

The deal follows NEC’s 2018 acquisition of British IT services company Northgate Public Services, whose customers include London’s Metropolitan Police, and 2019 purchase of Danish e-government services firm KMD for more than $1 billion.

NEC “share my ambition for Avaloq to continue to shape the future of the financial industry by continuing to invest heavily in R&D,” Avaloq founder Francisco Fernandez said in a statement.

Warburg Pincus had been targeting a 2020 sale or listing of Avaloq, Reuters reported last year.

NEC recently received a 64.5 billion yen ($560 million) investment from

04
Oct
2020
Posted in software

NEC to buy Swiss financial software firm Avaloq for $2.2 billion

TOKYO (Reuters) – Japan’s NEC Corp 6701.T said on Monday it had agreed to buy Swiss financial software company Avaloq Group AG for 2.05 billion Swiss francs ($2.2 billion), a move that will spearhead its entry globally into digital finance software.

The deal is expected to be completed by April 2021 after necessary approvals, NEC said in a statement. Source text for Eikon:

Privately-held Avaloq, the top provider in Europe of financial asset management software, reported sales of 610 million Swiss francs ($664 million) last year, 70% of which came from Europe.

NEC has spent the last decade restructuring unprofitable units that lost business to price-competitive Asian rivals, selling its semiconductor, personal computer and smartphone units.

The company has since focused on providing governments and businesses with solutions services using its technologies in biometrics, healthcare, data analyses and telecommunications.

It recently received a 64.5 billion yen ($560 million) investment from Japanese telecoms company Nippon Telegraph and Telephone (NTT) 9432.T to beef up its efforts to develop fifth-generation (5G) wireless technologies.

Reporting by Chris Gallagher and Makiko Yamazaki; Editing by Muralikumar Anantharaman and Jane Wardell

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