NEC to acquire Swiss fintech firm Avaloq for $2.24 billion

NEC Corp. said Monday it will acquire Swiss financial software vendor Avaloq Group AG for 2.05 billion Swiss francs (¥236 billion) by April to strengthen its global financial services reach.

The information technology giant hopes to add Avaloq’s leading digital banking solutions to its own advanced biometric and artificial intelligence technologies to expand its offering to clients.

Competition among fintech firms is intensifying due to the ongoing digitalization of the financial sector, boosted by cashless payment services and the possibility of central banks establishing digital currencies.

The Swiss firm has a strong track record of developing software for financial institutions and currently does business with more than 150 customers in 30 countries, according to NEC.

NEC “aims to create new solutions that combine Avaloq’s software with NEC’s cutting-edge technologies” through its broad sales channels, NEC President and CEO Takashi Niino said in a statement.

The Japanese firm said it will complete the acquisition by purchasing a full stake in the Netherlands-based holding company of Avaloq upon the wrapping up of antitrust screenings in a number of countries.

The digitization of the financial industry is expected to have a broad impact on the sustainable development of the digital economy and society. NEC will acquire software and domain knowledge in the digital finance field through the acquisition of Avaloq, and enter this field globally, while strengthening its business in the digital government field.

Furthermore, NEC aims to expand its business and improve profitability, mainly in the digital government and digital finance areas, by globally developing SaaS business models that utilize software and technologies from throughout the NEC Group.

About NEC Corporation
NEC Corporation has established itself as a leader in the integration of IT and network technologies while promoting the brand statement of “Orchestrating a brighter world.” NEC enables businesses and communities to adapt to rapid changes taking place in both society and the market as it provides for the social values of safety, security, fairness and efficiency to promote a more sustainable world where everyone has the chance to reach their full potential. For more information, visit NEC at https://www.nec.com.

About Avaloq
Founded in 1985, Swiss-based Avaloq is a global leader in digital banking solutions, core banking software and wealth management technology. Avaloq provides powerful cloud computing solutions for banks and wealth managers through BPaaS and SaaS. Avaloq is the only independent banking software provider to develop and also operate its own software.

Its established core banking system is complemented by three innovative digital platforms – Engage, Wealth and Insight – providing end-to-end digital solutions at a level of simplicity that will pave the way for the democratization of wealth management. To further spur innovation, Avaloq connects its clients with selected fintechs through the Avaloq.one Ecosystem, the company’s open banking marketplace.

More than 150 banks and wealth managers with around CHF 4.5 trillion in assets managed worldwide trust Avaloq for its award-winning products and services. Avaloq has its headquarters in Zurich, Switzerland and employs more than 2,000 people around the world.