NEC Corporation announces completion of Avaloq’s acquisition

By Megha Bhattacharya

Japan-based NEC Corporation has announced the closing of its acquisition of Swiss FinTech Avaloq. The acquisition is expected to further the companies’ long-term growth, global expansion and value creation strategy. NEC first announced the acquisition in October 2020, which was followed by regulatory approvals.

The company will hold 100% of Avaloq’s shares including the 45% previously held by private equity firm Warburg Pincus, as well as the remaining shares held by Avaloq’s founder Francisco Fernandez and by employees. Avaloq will continue to operate as its own entity with its Swiss headquarters.

Masakazu Yamashina, Executive Vice President of NEC and new chairman of Avaloq, said, “With its 35-year heritage and focus on innovation in digital banking solutions, core banking software and wealth management technology, Avaloq is uniquely qualified to launch NEC into the Digital Finance field, which together with Digital Government, is one of the pillars for building NEC’s global growth. Our joint value proposition will build on Avaloq’s reliable digital finance products and the trust it has established amongst its clients, coupled with NEC’s cutting-edge technologies, global business network and digital government domain knowledge.”

NEC Corporation, as part of the acquisition, established a new Board of Directors with its Executive Vice President, Masakazu Yamashina, as the new chairman of Avaloq. Other members to join the Avaloq Board will be Tomoki Kubo, Tomonori Hira, Daichi Iwata and Asako Aoyama, while Francisco Fernandez and Peter Schöpfer will remain members of the board of directors.

Jürg Hunziker, CEO of Avaloq, said, “… Our solutions will only evolve for the better when leveraging NEC’s proven expertise with technologies related to Digital Identity, Artificial Intelligence, Verification, Blockchain, Cybersecurity, and Biometrics. In addition, our innovation capabilities will be elevated with NEC’s strong commitment to Research & Development, evidenced by the resources it has placed towards this, including dedicated facilities in Heidelberg, Germany.”

IBS Intelligence recently reported Avaloq’s announcement of Sberbank (Switzerland) going live with its Software as a Service solution. The implementation is expected to boost the financial institution’s growth project.