– SWITZERLAND, Zurich – Avaloq, an international fintech company and a leader in integrated and comprehensive banking solutions, announces that it has entered into an agreement for Warburg Pincus, a global private equity firm focused on growth investing, to acquire a ~35% shareholding in the company from existing shareholders. The transaction values Avaloq in excess of CHF 1 billion and allows the firm to rebalance its shareholding structure and bring in an experienced partner in Warburg Pincus to help facilitate the next phase of growth and value creation, with an investment horizon of 7 years and a potential public listing of Avaloq in the coming years.
Avaloq serves banks and wealth managers worldwide, having largely completed a transformation from a pure software company to an integrated service provider.
As part of the transaction, Avaloq founder and Chief Executive Officer Francisco Fernandez will also assume the role of Chairman. Jürg Hunziker will serve as Deputy CEO and Group Chief Markets Officer (CMO). Warburg Pincus will nominate two individuals to join Avaloq’s Board of Directors.
Concurrent with the transaction, Avaloq is creating a European Advisory Board to support the company’s strategic initiatives and growth witch will include:
- Jacques Aigrain, former Chief Executive Officer of Swiss Re and Chairman of LCH.Clearnet,
- Stefano Boccadoro, the former General Manager of Cassa Lombarda Bank and Chief Executive Officer of Santander Italy,
- Stefan Krause, former Chief Financial Officer of Deutsche Bank and BMW and
- Javier Marin, former Chief Executive Officer of Banco Santander.
Francisco Fernandez, commented: “I am delighted to welcome Warburg Pincus as shareholders in Avaloq and look forward to partnering with them as we accelerate the growth of the business. Their global presence, in the US, Europe and years of experience in Asia, combined with their extensive experience in financial services and software, and large network in the broader banking and wealth management industry will be invaluable as we enter a new stage in the development of Avaloq and its geographic expansion. While Avaloq’s management, employees and current Board of Directors retain the majority by means of shares and governance, we will leverage Warburg Pincus’ expertise to continue our path for capital market readiness.”
Daniel Zilberman, a Managing Director and Head of Europe at Warburg Pincus, said: “With its focus on innovation, we believe that Avaloq is uniquely qualified to take advantage of growing demand for cutting edge software and outsourced services in the financial industry. We look forward to partnering with Francisco, Jürg and the rest of Avaloq’s talented team as the company enters a new and exciting stage in its international growth path.”
Adarsh Sarma, a Warburg Pincus Managing Director, said: “Avaloq benefits from best-in-class technology which will form the basis for future growth in the core wealth management and private banking business as well as in the broader retail and commercial banking sector. In partnering with Avaloq, we will draw upon our deep financial services and software experience to accelerate the growth of the company.”
Jürg Hunziker, Deputy Chief Executive Officer and Group CMO of Avaloq, commented: “The technology and service market for the financial industry is growing rapidly and I believe that there are tremendous opportunities for further growth of the business. I look forward to continuing to drive Avaloq’s international growth. In evaluating potential partners to support us with our growth strategy, we put special emphasis on company culture, and Warburg Pincus perfectly matches the Avaloq values. They will enable our team to provide the best possible digital banking technology and innovative services also in the future. Thanks to our very loyal customers and highly committed employees we have achieved a leading position in the market and are now ready for the next step.”
About Avaloq
The Avaloq group is an internationally leading fintech company. With its core banking software, the Avaloq Banking Suite, and its international network of BPO centres, Avaloq brings trustworthy and efficient banking to the world, delivered through great user experience. With its integrated BPO services, Avaloq is the only independent provider for the financial industry to both develop and operate its own software.
About Warburg Pincus
Warburg Pincus is a leading investor in the financial services and fintech sectors, with over USD 10 billion invested in over 90 companies in these sectors (nearly 20 of which are banks).
Warburg Pincus’s notable financial services and fintech investments include: AllFunds Bank, Arch Capital, China Huarong Asset Management, FIS/Metavante, HDFC, Interactive Data Corporation, Mellon Bank, Network International, Elavon, Sterling Financial Corp, Santander Consumer USA, Wall Street Systems, Webster Bank and many others.
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