The acquisition combines NEC and Avaloq’s and individual technological strengths in their respective fields
NEC's Kobe system centre. (Credit: Nkns/Wikipedia.)
Japanese IT firm NEC has completed the acquisition of Swiss-based digital banking and wealth management technology provider Avaloq.
With the acquisition, the companies are expected to combine their individual technological strengths in their respective fields.
Initially announced in October 2020, the transaction was closed after receiving the relevant regulatory approvals.
Initially announced in October 2020, the transaction was closed after receiving the relevant regulatory approvals.
Avaloq CEO Jurg Hunziker said: “Avaloq will be entering a new era together with NEC. This transaction has generated much interest and we truly believe that NEC is the best partner for our business.
“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. I am very much looking forward to starting this new part of our exciting growth journey together with NEC.”
Avaloq offers cloud-based solutions for global banks and wealth managers
Established in 1985, Avaloq offers cloud-based solutions for global banks and wealth managers through business process as a service (BPaaS) and software as a service (SaaS) in addition to on-premise solutions.
The company aims to maintain the investor’s human relationship with an advisor, enhance it through technology and to increase engagement and satisfaction.
With the democratisation of wealth management, access to investment strategies and advice has been enhanced, which was previously available only to ultra and high net worth individuals, said the company.
NEC is engaged in the integration of IT and network technologies, through its offices located in more than 50 countries.
The company now holds 100% of Avaloq’s shares, including the 45% previously held by private equity firm Warburg Pincus, along with the remaining shares by Avaloq’s founder Francisco Fernandez and by employees.
NEC executive vice president and Avaloq new chairman Masakazu Yamashina 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.”