The transaction, which values Avaloq “in excess of 1 billion Swiss francs”, will see Warburg Pincus acquire 35 per cent of Avaloq from existing shareholders.
Avaloq, which services banks around the world with its software as a service (SaaS) solutions, said it agreed to the deal to “rebalance its shareholding structure” and “bring in an experienced partner ... to help facilitate the next phase of growth and value creation”.
The transaction is the “first step" towards a potential public listing of Avaloq in the coming years, the firm said in a statement.
“As part of the transaction, Avaloq founder and chief executive officer Francisco Fernandez will also assume the role of chairman. Jurg Hunziker will serve as deputy CEO and group chief markets officer,” Avaloq said.
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, Jurg and the rest of Avaloq’s talented team as the company enters a new and exciting stage in its international growth path,” Mr Zilberman said.