Avaloq, a Swiss company that develops and provides software for core banking, announced its acquisition by Japanese NEC Corporation.

The acquisition is expected to be worth CHF 2.05 billion (approximately US$2.2 billion), and to be completed by April 2021, following the confirmation of necessary procedures and approvals for each organisation.

The partnership is expected to accelerate Avaloq’s long-term growth, global expansion and value creation strategy.

Founded in 1985, Avaloq provides cloud solutions for banks and wealth managers around the globe through business process as a service (BPaaS) and software as a service (SaaS). With more than 120 years of expertise, NEC provides the integration of IT and network technologies.

Listed on the Tokyo stock exchange, NEC has office locations in more than 50 countries. NEC announced the acquisition of 100% of Avaloq’s shares, 45% of which is owned by Warburg Pincus, while the rest is held by Avaloq’s founder and employees.

Headquartered in Switzerland, Avaloq will continue to operate as its own entity and this acquisition will not lead to a reduction in workforce.

NEC has well-established research centers, amongst others also in Heidelberg, Germany, which Avaloq would start to collaborate with in order to anticipate future trends and build smarter solutions for clients.

Juerg Hunziker, CEO of Avaloq, said:

“The Avaloq team is delighted to be joining NEC Group, a highly trusted and well-respected company with a long heritage, which will help further enlarge our geographical footprint across the globe. With NEC, Avaloq found a perfect new home to continue our success story of serving our clients with solutions that make their lives simpler in an ever more complex world. The Avaloq team would like to thank Warburg Pincus for its valuable strategic advice and continued support during our successful partnership.”

Featured image credit: NEC