The Swiss banking software firm has found a buyer which values the company at $2.23 billion. The move follows a fallout with its private equity owner of three years.
NEC Corporation is buying Avaloq in an acquisition which values the Zurich-based software firm at 2.05 billion Swiss francs ($2.26 billion) the Swiss firm said in a statement on Monday. The Japanese tech firm will operate Avaloq as its own entity based in Switzerland.
The deal means an exit for Warburg Pincus, which owns 45 percent, as well as for founder Francisco Fernandez, who owns 28 percent of Avaloq. The acquisition, which NEC and Avaloq expect to wrap within six months, means long-term stability for clients and employees, Avaloq said.
Since the private equity house took a major stake in 2017, Avaloq has sharpened strategy to shift into a more piecemeal software service model dubbed SaaS. The move has weighed on profitability, as has a high double-digit million cloud-based effort and a dividend to its shareholders in 2018.
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