GFT Technologies AG (GFT) is to acquire Asymo AG (Asymo), one of Switzerland's leading IT consulting companies for the core banking solution Avaloq.
A corresponding agreement has been signed in Zurich. The move will enable the GFT Group to expand its client base in Switzerland and add high-quality consulting expertise in standard software to its range of services. "The importance of expert advice for core banking systems is growing fast around the world. Asymo is the ideal partner for us to continue our international growth strategy. The acquisition represents a significant step forward and also strengthens our positioning as an IT specialist for banks in the important Swiss market," states GFT's CEO Ulrich Dietz in his assessment of the takeover.
Many financial institutes are currently being forced to completely modernise their core banking systems and are relying increasingly on standard solutions. "As such projects are generally very complex, the demand for consulting in the field of IT-based banking processes will continue to grow in future. We aim to meet this demand by combining GFT's in-depth expertise of the banking sector with Asymo's outstanding knowledge. Together, we are even better placed to provide a comprehensive range of one-stop services for the modernisation of banks' IT landscapes," says Dietz.
Founded in 2004, the IT consulting company Asymo specialises in services connected with the implementation and maintenance of the Avaloq total banking solution. The company acquired the status of an official Avaloq Associate Implementation Partner in 2007. Its specialist consultants conduct projects for major financial institutes in Switzerland, as well as in other European nations and Asia. The company's services range from software evaluation and process analysis, to change management and the implementation of core banking solutions.
"Asymo enjoys an excellent reputation in the Swiss banking sector and fits perfectly to us. I am looking forward to working together with a highly skilled team, and to exploiting existing synergies and jointly developing business in the UK," states Graham Underwood, Managing Director of GFT UK.
Apart from the additional business potential offered by the Swiss banking market - especially in the field of mobile banking and GFT's modern investment consulting solution a-touch - Graham Underwood also sees opportunities to gain new customers with Avaloq outside Switzerland. The GFT Group's strong presence in Germany, the UK, Spain and Brazil, coupled with Asymo's outstanding solutions expertise, will help the company win new projects in these countries.
"GFT has an extensive sales network and is excellently positioned on the international market. Asymo can be integrated perfectly into this group which specialises in the financial services sector. he combination will enable us to provide an increasing number of our top-class services also outside Switzerland," says Ralph Baumann, Member of the Management Board of Asymo AG.
By acquiring Asymo, GFT expects to reach total annualised revenue of around EUR 16 million in Switzerland and will employ over 50 people at its offices in Zurich and Basle. Due to investment and integration costs, Asymo will presumably not make any appreciable contribution to GFT Group profits in 2011. However, thanks to the acquisition of Asymo the GFT Group foresees sustained growth in Switzerland from 2012. The net operating margin of the Swiss companies will rise from today's figure of 6 percent to over 15 percent in 2012.
The GFT Group plans to expand its knowledge in the field of core banking systems even further by establishing an Avaloq Competence Centre based in Switzerland. "The acquisition significantly strengthens our position as a strategic IT partner for the financial sector," states Ulrich Dietz.
The two partners have agreed not to disclose the purchase price.