Avaloq and NEC Corporation recently announced the closing of the acquisition of Avaloq by NEC.
FREMONT, CA: Avaloq, a Swiss-based international pioneer in wealth management technology and digital banking solutions, and Japan-based NEC Corporation recently announced the closing of the acquisition of Avaloq by NEC. The integration of their shared vision, technical capabilities, and global reach, each being a market leader in their sector, will accelerate the long-term growth, international expansion, and value creation strategy of both companies.
The acquisition was first announced in October 2020, and the transaction was completed on December 22, 2020, following receipt of the necessary regulatory approvals. NEC currently owns 100 percent of Avaloq's shares, which includes 45 percent previously owned by Warburg Pincus, a private equity company, and the remaining shares owned by Francisco Fernandez, the founder of Avaloq, and by employees.
Established in 1985, via Business Process as a Service (BPaaS) and Software as a Service (SaaS) along with on-site solutions, Avaloq offers robust cloud solutions for banks and asset managers around the world. The vision of Avaloq for the future of wealth management is to preserve an investor's human relationship with a consultant, strengthen the relationship through technology, and increase interaction and satisfaction. The democratization of wealth management would enable more consumers to access a higher amount and quality of investment strategy and advice that was once restricted for individuals of ultra and high net worth only.
NEC Corporation has formed a new Board of Directors as part of the merger, with NEC Executive Vice President Masakazu Yamashina as Avaloq's new Chairman. In addition to the new Chairman, the board will have four new members: Tomoki Kubo, Tomonori Hira, Daichi Iwata, and Asako Aoyama. Francisco Fernandez and Peter Schopfer will continue as the members of Avaloq Group AG's board of directors.
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."