Luxoft to set up new wealth management tech practice upon acquisition of Unafortis

Source: Luxoft

Luxoft Holding, Inc. (NYSE:LXFT), a leading provider of software development services and innovative IT solutions to a global client base, today announced that it has acquired UNAFORTIS, a Swiss-based wealth management consultancy specializing in Avaloq implementations and business consulting anchored in IT services.

Avaloq is a provider of fully integrated banking software for the back, middle, and front office. With a team of in-depth experts dedicated to Avaloq-related services, UNAFORTIS is one of its leading implementation partners. This acquisition therefore deepens Luxoft’s expertise in standardized software and enables Excelian, Luxoft Financial Services to target a growing global client base within the wealth management, private, and universal banking sectors.

In addition, Luxoft intends to offer Avaloq-based services beyond the predominantly Swiss-client base of UNAFORTIS. Luxoft therefore plans to work with Avaloq to develop more wealth management and private banking clients. In particular, Luxoft expects to build a 150 to 200-engineer global practice, taking advantage of synergies in the shared markets of Excelian and the recently acquired derivIT in the UK, APAC, Germany and North America, as well as the near and offshore - regionally adaptable - core capabilities of Luxoft.

“We are looking forward to UNAFORTIS joining our growing Luxoft team. It is a strategically important acquisition, helping us diversify financial services business outside of our core investment banking and capital markets presence,” said Dmitry Loschinin, President and CEO of Luxoft. “Its client base complements our own, creating mid-term cross-selling opportunities that can be scaled significantly through our delivery network. This will add another valuable premium services layer to our core application development and maintenance offering.”

Increased regulatory pressure, digital disruption and new entrants to the market have reduced margins for many banks. As a result, institutions are simplifying their operations by consolidating their IT platforms and implementing standard packaged solutions to boost profitability. Thus, Luxoft is responding to an increase in global demand for software solutions like Avaloq that set the standards for efficiency and lean solutions.

”We are very pleased with our alliance with Luxoft. We believe that both the company’s culture and domain expertise will make for a successful acquisition,” UNAFORTIS founding partners stated. “Our company has grown significantly in the last few years and still has a deep pipeline for further growth. We will help Luxoft grow its presence in wealth management and private and retail banking with the support of our highly skilled consultants.”

Francisco Fernandez, Group CEO and Chairman of the Board of Directors of Avaloq, welcomes Luxoft and UNAFORTIS embracing cooperation: “Avaloq is looking to expand its ecosystem of capable and knowledgeable implementation partners, as our software and our transaction processing offering is gaining popularity daily. We are convinced that Luxoft as a leading global IT services and consulting company, in combination with UNAFORTIS’ expertise as a full-service provider of Avaloq services, is best positioned to provide a strong execution scale and create multiple new business opportunities for the future growth of the Avaloq ecosystem.”

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