Avaloq

History

2020: NEC purchased Avaloq for $2.2 billion

On October 5, 2020 the Japanese telecommunication corporation NEC announced acquisition of the Swiss software developer for financial transactions of Avaloq. The transaction is estimated at 2.05 billion Swiss francs ($2.2 billion).

NEC redeems 100% of Avaloq. To the transaction a 45 percent share in Avaloq financial technical-company belonged to Warburg Pincus investment group. The remained securities belonged to the CEO of Avaloq Francisco Fernández and also several investors.

The CEO of NEC corporation Takasi Niino noted that Avaloq technologies will be used for transformation of the outdated Japanese state systems. Avaloq will also help the company to enter the new markets outside Europe. At the same time the transaction will not lead to staff reduction, the management of Avaloq will remain the same.

NEC purchased software developer for Avaloq giant banks for $2.2 billion

Japan lags behind in the plan of digitalization of the financial sector, and it will be a considerable trend — he said.

NEC separates my aspirations to that Avaloq continued to create the future of the financial industry, continuing to invest heavily in research and development, said in the statement of the founder of Avaloq Francisco Fernández.

According to CNBC, the transaction became a part of long-term restructuring of NEC which caused liquidation of the unprofitable enterprises and reduction of jobs. To this transaction the Japanese corporation purchased the Danish IT company KMD for $1.2 billion and the British software provider Northgate Public Services for 475 million pounds sterling.

Besides, to this NEC received investments in the amount of 64.5 billion yens ($560 million) from the Japanese telecommunication company Nippon Telegraph and Telephone (NTT) for activation of the efforts on development of wireless technologies of fifth generation (5G).^[1]

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