The Swiss banking software company has a surprising and bulky side inheritance from its latest technology migration project: a 75-person operation in Duesseldorf.
The Zurich-based technology firm is taking over a 75-person operation in Duesseldorf from Apobank [Apotheker- und Aerztebank], according to «finanzszene.de» (in German). The operation is devoted to back-office administration and custody of securities, the finance portal reported.
Duesseldorf – Avaloq’s third office in Germany, after Berlin and Leipzig – is an offshoot of a costly four-year-long technology renewal process at Apobank. The pattern is reminiscent of its last big migration project, with Raiffeisen. The Swiss cooperative bank later bought Avaloq out of their joint venture, Arizon, despite plans for Avaloq to take over the entity.
Raises Questions
The move also questions over how successfully Avaloq is moving away from selling systems to banks and towards software services – which typically provide steadier income. A spokeswoman for Avaloq wasn’t immediately available for comment. Apobank saw its bill for the overhaul skyrocket to about 500 million euros ($548 million).
For Avaloq, the German lender represents a milestone as its major shareholder, private equity house Warburg Pincus, weighs up its exit options. The migration, scheduled for later this month after various delays, is a key proof point in the German market, where Avaloq suffered a setback when it lost BHF Bank as a client four years ago.
