Swiss banking software program firm Avaloq prepares for 2020 sale: sources

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FRANKFURT/ZURICH (Information) – Swiss banking software program firm Avaloq is beginning preparations for a 2020 sale or preliminary public providing as its non-public fairness shareholder Warburg Pincus seeks an exit, folks near the matter mentioned.

The buyout group, which owns 45% of Avaloq, is anticipated to mandate advisers quickly to deal with the divestiture, the sources mentioned, including that an public sale might launch in early 2020.

Avaloq founder Francisco Fernandez, administration and workers additionally maintain shares within the firm.

Avaloq and Warburg Pincus declined to remark.

Avaloq Chief Government Juerg Hunziger had mentioned this 12 months that the corporate was getting ready for an IPO or sale inside the subsequent two to 4 years.

Avaloq, based in 1985 as BZ Informatik, provides software program for monetary establishments equivalent to Barclays, BBVA, Deutsche Financial institution, HSBC, Rothschild, Societe Generale and Vontobel. Its software program programmes handle $four.5 trillion in consumer cash.

Within the first half of 2019, Avaloq posted a 5% year-on-year enhance in revenues in addition to core earnings, to 288 million francs in gross sales and adjusted EBITDA of 38 million.

Bigger and extra worthwhile peer Temenos trades at 25 occasions its anticipated core earnings.

Reporting by Arno Schuetze and Oliver Hirt, Enhancing by Michael Shields