TOKYO — Japanese electronics giant NEC will purchase Swiss banking software developer Avaloq for 2.05 billion Swiss francs ($2.2 billion), the company said on Monday.
NEC plans to acquire all 52,488 shares of Avaloq’s parent company by April 2021, as it looks to leverage the Swiss company’s knowledge and digital finance software technology for growth.
Avaloq provides banking software mostly to private institutions and has a customer base in 30 countries. The company is known for its platform-based software as a service, or SaaS, and business process as a service, or BPaaS, for wealth management.
It has the biggest market share in wealth management software within Europe and the Asia-Pacific region. More recently, Avaloq has been accelerating its fintech business by forming partnerships with startups.
NEC President and CEO Takashi Niino said in a statement: “NEC will be placing great importance on building long-term relationships with Avaloq and its customers, and aims to create new solutions that combine Avaloq’s software with NEC’s cutting-edge technologies, such as its brand of biometric authentication solutions, ‘Bio-Idiom,’ the company’s AI technology brand, ‘NEC the WISE,’ and its innovative blockchain technologies.”
The statement also indicated that NEC wants to expand Avaloq’s software sales through the Japanese company’s own channels, including leading European tech company KMD, which NEC acquired in February 2019.
NEC said the impact of the takeover on earnings for the current fiscal year ending March 2021 is still under study.
NEC to buy Swiss fintech Avaloq for $2.2bn – Nikkei Asian Review