Private equity group Warburg Pincus has agreed to acquire a 35% stake in Swiss fintech firm Avaloq from existing shareholders.
Avaloq founder and CEO Francisco Fernandez will retain a 28% stake in the company, while management and employees will retain another 27% holding.
The deal values the company at more than CHF1bn, though detailed financial terms were not disclosed.
Warburg Pincus will collaborate with Avaloq to speed up the fintech’s growth and value creation strategy. The deal is expected to close in the second quarter of 2017.
As part of the deal, Fernandez will take up the role of chairman, while Jurg Hunziker will assume the role of deputy CEO and group chief markets officer.
Warburg Pincus managing director and head of Europe Daniel Zilberman said: "With its focus on innovation, we believe that Avaloq is uniquely qualified to take advantage of growing demand for cutting edge software and outsourced services in the financial industry. We look forward to partnering with Francisco, Jürg and the rest of Avaloq's talented team as the company enters a new and exciting stage in its international growth path."
“In evaluating potential partners to support us with our growth strategy, we put special emphasis on company culture, and Warburg Pincus perfectly matches the Avaloq values. They will enable our team to provide the best possible digital banking technology and innovative services also in the future,” Hunziker said.
In addition, Avaloq is setting up a European Advisory Board to support its growth initiatives. The board will comprise Jacques Aigrain, former of Swiss Re CEO Jacques Aigrain, Santander Italy CEO Stefano Boccadoro, former Deutsche Bank CFO Stefan Krause, and former Banco Santander CEO Javier Marin.