Add-on Acquisition • Software

NEC Acquires Avaloq Group AG

On December 23, 2020, NEC acquired software company Avaloq Group AG from Warburg Pincus

Acquisition Context
  • This is NEC’s 4th transaction in the Software sector.
  • This is NEC’s 1st transaction in Switzerland.

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M&A Deal Summary

Date December 23, 2020
Target Avaloq Group AG
Sector Software
Buyer(s) NEC
Sellers(s) Warburg Pincus
Deal Type Add-on Acquisition

Target Company

Avaloq Group AG

Zürich, Switzerland
Avaloq provides powerful cloud solutions for banks and wealth managers around the globe through the business process as a service (BPaaS) and software as a service (SaaS) along with on-premise solutions. Avaloq's vision for the future of wealth management is to maintain the human relationship an investor has with an advisor, to enhance the relationship through technology, and to increase engagement and satisfaction. The democratization of wealth management will allow more people to have access to a greater quantity and quality of investment strategies and advice that was once reserved for ultra and high net worth individuals only. Avaloq Evolution was formed in 1985 and is based in Zürich, Switzerland.
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Buyer Overview 1

Buyer

NEC

Tokyo, Japan

Category Company
Founded 1899
Sector Technology Hardware
Employees104,194
Revenue 3.42T JPY (2025)
DESCRIPTION
NEC's office in Santa Clara, California.
NEC's office in Santa Clara, California.

NEC is a global provider of IT hardware and solutions. The Company also offers systems integration services, such as systems implementation and consulting services. NEC was founded in 1899 and is based in Tokyo, Japan.


Deal Context for Buyer #
Overall 10 of 14
Sector: Software 4 of 6
Type: Add-on Acquisition 9 of 13
Country: Switzerland 1 of 1
Year: 2020 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-08-28 SINCERE

Tokyo, Japan

SINCERE is engaged in recycling and building maintenance business. SINCERE was founded in 1969 and is based in Tokyo, Japan.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-10-01 Capita Secure Solutions and Services

London, United Kingdom

Capita Secure Solutions and Services is a provider of software and solutions to the emergency services and justice sectors. Capita Secure Solutions and Services is based in London, United Kingdom.

Buy -

Seller Profile 1

SELLER

Warburg Pincus

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1966
PE ASSETS 83.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Warburg Pincus is a mega-sized, global private equity firm focused on investment opportunities across North America, Asia, and Europe. Warburg will consider investing at various company stages, from early-stage opportunities to distressed situations. Warburg Pincus is organized by industry groups. Verticals include financial services, healthcare, technology, media & telecommunications, energy, consumer & industrial, and real estate. Within financial services, Warburg will consider asset/wealth managers, banks, exchanges, financial technology, insurance, transaction processing, private banking, and specialty/consumer finance. Within healthcare, specific areas of interest include medical devices, healthcare services, and biotech/pharmaceuticals. Within technology/media/communications, Warburg targets software, media/internet/information, financial technology, telecom, business services, and systems/semiconductors. Within energy, specific areas of interest include oil/gas exploration, power generation/transmission, and alternative energy. Warburg Pincus raised its first fund in 1966 and is based in New York City.


Deal Context for Seller #
Overall 206 of 265
Sector: Software 16 of 23
Type: Add-on Acquisition 69 of 97
Country: Switzerland 1 of 1
Year: 2020 13 of 13
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2020-12-09 AA

Basingstoke, United Kingdom

AA is a provider of insurance broking, insurance underwriting and driving services. AA was founded in 1905 and is based in Basingstoke, United Kingdom.

Buy £3.8B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2021-01-01 Aquila Air Capital

New York, New York, United States

Aquila Air Capital is a specialty finance platform focused on providing asset financing in partnership with industry participants as well as purchasing and leasing aircraft, engines and other aviation equipment. Aquila Air Capital is based in New York City.

Buy -