One of Europe’s leading niche financial software companies is gearing up for sale or flotation in 2020, following the decision of its main external shareholder to seek an exit after nearly three years.
Swiss-based Avaloq is in the early stages of considering its options in the light of Warburg Pincus’ wish to sell its 45% stake. Most of the rest of the shares are held by management and staff. No appointment has yet been made of an adviser to handle the process, and no deal will take place until next year, but unofficial sources say that preparations are now gaining momentum.
Avaloq provides software as a service (SaaS) and business process as a service (BPaaS) solutions to banks and wealth manager. It claims that its services are used by more than 150 banks, which in aggregate manage more than CHF 4,500bn of assets.
From an initial base in Switzerland and Germany it has now expanded across Europe and the Far East and has ambitions for further geographic expansion. Last year it generated underlying EBITDA of CHF90m from sales of CHF579m and it had net cash of CHF144m at its last year-end.
Neither Avoloq nor Warburg Pincus is willing to comment.