Buyout firm Warburg Pincus has increased its stake in Swiss FinTech company Avaloq.
The firm has purchased Raiffeisen’s 10 percent stake, taking its total holding to 45 per cent. As part of the transaction, Avaloq will also buy up Raiffeisen’s 51 per cent stake in ARIZON in 2019.
ARIZON was founded at the end of 2014 as a joint venture between Avaloq and Raiffeisen. The company’s mission is to develop and operate a universal banking platform and provide processing services for the Raiffeisen Group. Under the agreement in principle, ARIZON would become a wholly-owned subsidiary of the Avaloq group.
Francisco Fernandez, Avaloq’s Group CEO and chairman of the board, said: “We are delighted to take our partnership with Raiffeisen to the next level and continue to support them for the long term with our banking technology and services. We are equally pleased to assume full ownership of ARIZON, which has proven its retail banking expertise in an impressing manner under the leadership of CEO Mathias Schütz, and we look forward to further advancing the platform.”
Back in March, Warburg Pincus acquired its initial 35% stake in Avaloq, with the deal resulting in reported $300m investment into the Zurich-based company.
Established in 1985, Avaloq is a technology-driven financial services provider for wealth management, universal and retail banks. The Avaloq Banking Suite comprises a fully integrated, modular banking solution of back, middle and front office functionalities and is successfully run in the most demanding financial centres in the world. It offers solutions to ensure financial institutions can comply with tightened regulations.
The company creates regulatory solutions for a number of areas from front office to back office in order to automate the application of compliance rules and regulations. It claims that its solutions enables a smooth client experience while improving the efficiency of middle and back office operations and thus lowering costs for banks.
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