Japan’s NEC Corp. has agreed to buy Swiss banking software outfit Avaloq Group AG for $2.23 billion, the companies announced on Monday.
Avaloq, founded in 1985, has more than 150 clients, including names like Deutsche Bank AG and HSBC Holdings, with roughly $4.9 trillion in managed assets, according to a statement from private equity firm Warburg Pincus LLC, which holds a 45% stake in the company. Bloomberg News reported the planned announcement a few hours prior.
Financial technology, or fintech, firms like Avaloq have been attracting ever more attention in recent times, and the coronavirus era’s push to more remote work has made cloud-based software-as-a-service solutions more essential to continuing uninterrupted operations.
NEC was the winner of a competitive auction and completion of the deal is expected in early 2021, subject to regulatory approval.
Technology dealmaking has held up relatively well amid the pandemic downturn, with more than $120 billion of transactions announced in Europe since the start of the year, according to data compiled by Bloomberg.
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