The Avaloq group, the reference for integrated and comprehensive banking solutions, has acquired a majority stake in B-Source AG, a leading banking business process outsourcer (BPO) in Switzerland.
BSI, part of the Generali Group and original founders of B-Source, will remain a minority shareholder and an important customer of B-Source. BSI thereby ensures a forward-looking, growth-oriented ownership structure for its banking BPO subsidiary. The acquisition of B-Source means that Avaloq group extends its value chain and become the largest independent provider of comprehensive solutions for the execution of banking business. B-Source remains a legally independent entity forming part of the Avaloq group and will continue to operate under its own name. The Avaloq group will retain B-Source's existing locations in Ticino, Zurich, Lucerne, Romandie as well as in other countries. The acquisition will not result in job losses.
Avaloq and B-Source see this move as a logical extension of the successful and long-standing cooperation between the two banking specialists. As a result of the acquisition, the Avaloq group offering will now extend beyond banking technology and consultancy services to include data centre services, application management services, and will be able to outsource banks' entire back-office and IT operations. The group now employs more than 1,200 staff, generating an annual turnover of CHF 360 million (Swiss Francs) (2011E) and has customers in more than 20 countries. The acquisition of B-Source will not result in any job losses. The Avaloq group will retain both companies' existing head offices and locations in Switzerland as well as in other countries. It is committed to Switzerland as a financial centre and centre of expertise, and plans to further grow at its Swiss locations.
Francisco Fernandez, Member of the Board of Directors of B-Source and CEO of Avaloq Group AG, says: "Acquiring the majority stake in B-Source makes the Avaloq group the leading independent provider of modular and fully integrated solutions for the execution of banking business. This applies to both large and small retail, wealth management and universal banks in Switzerland and around the world. Joining forces with B-Source will enable us to take further steps to address the growing complexity in operational, compliance, reporting and IT management. It will also enable our customers to wholly concentrate on providing excellent service to their clients, which ultimately sets them apart, allowing them to grow and become more profitable."
B-Source will remain a legally independent entity forming part of the Avaloq group, and it will continue to operate under its own name. BSI AG will retain 49 percent of B-Source and will remain an important customer for
B-Source. The parties have agreed to keep the purchase price confidential. Avaloq and B-Source will continue to work with an extensive network of domestic and international technology, distribution and implementation partners, which will be expanded further following the acquisition.
Dr Alfredo Gysi (BSI CEO) is to remain Chairman of the Board of Directors of B-Source, and Gianni Aprile (Deputy CEO of BSI) will remain on the B-Source Board of Directors. They will be joined by new appointees, Dr Didier Sangiorgio (Chairman of Avaloq Group AG), Philipp E. Achermann (Member of the Board of Directors Avaloq Group AG) and Francisco Fernandez (CEO of Avaloq). The general management of B-Source is unchanged, consisting of CEO Markus Gröninger, Andrea Bosetti, Andrea Frei, Joseph M. Kaister, Rainer Link, Matteo Marini, Frank Müller Erkelenz and Benjamin Stäheli. The Avaloq Executive Board, consisting of Francisco Fernandez (CEO), Enrico Ardielli, Adrian Bult, Klaus Rausch, Mathias Schütz and Ronald Strässler, remains also unchanged.
Dr Alfredo Gysi, Chairman of the Board of Directors of B-Source and CEO of BSI, says: "As the founder and very first customer of B-Source, we have successfully grown and developed the company to become one of Switzerland's leading providers of BPO services. Our objective was to secure an ownership structure for B-Source that would enable it to achieve sustained growth in an attractive market. The acquisition of a majority stake by our strong technology partner Avaloq will allow B-Source to seize even more opportunities in the BPO market.
This strategic move will give BSI the freedom to concentrate more heavily on its core competences and enable it to benefit from improved standards of performance and quality and take advantage of a cost efficient structure."
Markus Gröninger, B-Source CEO, says: "Merging Avaloq and B-Source will create benefits for customers that are demanding more integrated, high-performing IT and BPO solutions. The business rationale is undeniable and the new ownership of B-Source will accelerate growth in Switzerland and beyond."
The Avaloq subsidiary, B-Source, already settles almost all domestic and international transactions for BSI in Switzerland, Singapore, Luxembourg, Nassau and Monaco. In Switzerland, Reichmuth & Co Privatbankiers, NBAD Private Bank (Suisse) SA and QNB Banque Privée (Suisse) SA, all use the cutting-edge B-Source Master "powered by Avaloq".