Japan's NEC has acquired Swiss core banking vendor Avaloq for CHF2.05 billion.
Avaloq, which employs more than 2000 people worldwide, claims 150 client banks and wealth managers for its core banking, BPaaS and SaaS technology package.
The business was put up for sale in November 2019, with NEC ultimately winning out against a field of suitors that included ION, Apax Partners, Motive Partners and Nordic Capital
NEC, which majors in biometrics and AI in the digital government field, says the acquisition is part of a strategy to move into more horizontal markets
“NEC will be placing great importance on building long-term relationships with Avaloq and its customers, and aims to create new solutions that combine Avaloq's software with NEC's cutting-edge technologies, such as its brand of biometric authentication solutions, 'Bio-Idiom', the company's AI technology brand, 'NEC the WISE', and its innovative blockchain technologies," says Takashi Niino, president and CEO, NEC Corporation. “NEC will also promote global sales expansion of Avaloq's software by taking advantage of NEC Group sales channels, including KMD, a leading European software and IT services provider that NEC acquired in February 2019."
The transaction - in which Warburg Pincus has a 45% interest - is expected to be completed in April 2021.