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Crealogix said last year it wants to use Innofis to expand its client base as well as enter the digital banking market in the Middle East, where the Spanish firm has several softwre clients. 

Fragmented Offering

The most recent acquisition didn't do much to sharpen Crealogix's product and software offering, which is now comprised of solutions ranging from payments and advisory to front-end products for e- and mobile banking as well as digital training and education tools and technology. Its e-banking clients in Switzerland include Raiffeisen and VZ Vermoegenszentrum, while UBS uses Crealogix's e-learning application to get its bankers fit for MiFID II. 

The firm's revenue rose 18 percent last year to 75 million francs – derived from Switzerland and from international markets in equal parts. Crealogix is reliant on license sales, as the industry shifts towards selling software and digital solutions as services – a move which requires heavy investment, but enables firms to scale up.

Unlike some rivals, Crealogix is at the beginning of the development. The firm would also have to spend heavily in order to support its current growth phase and become a digital banking market leader.

Little Firepower

Does Crealogix have the financial wherewithal to realize its international growth plans? Its equity ratio stands at 37 percent and it generated free cash flow of 7 million francs – not hefty enough for massive moves.

The situation is fodder for speculation that Crealogix might look for a cash-rich investor or entertain a sale. Avaloq also fed chatter nearly two years ago when it unveiled expansion plans as well as a strategy to increasingly focus on outsourcing nearly two years ago. Private equity house Warburg Pincus took a stake in the Swiss banking software firm last year.

Crealogix admits it could go a similar route. «We are open to taking a new investor on board in order to get the financial resources we need to further develop Crealogix,» Richle said. The firm doesn't want to sell out entirely, but could sell part of itself.