Digital & Technology

Avaloq and Raiffeisen Switzerland enhance their partnership

Warburg Pincus to acquire Raiffeisen’s 10% stake in Avaloq. Further, Avaloq will acquire 51% of the joint venture ARIZON from Raiffeisen Switzerland as of 1 January 2019, which would give Avaloq 100% ownership of ARIZON.

The Avaloq group announced that it will bolster its existing partnership with Raiffeisen Switzerland into a value additive, long-term and pure client-supplier relationship.

In order to establish a pure long-term client relationship, Warburg Pincus will acquire Raiffeisen’s 10 percent stake in Avaloq, increasing Warburg Pincus’ ownership stake in Avaloq to 45 percent. Avaloq’s employees, management, Board of Directors and Group CEO, Chairman of the Board and founder Francisco Fernandez will remain the majority shareholders in Avaloq.

Additionally, Avaloq is to acquire 51% of the joint venture ARIZON from Raiffeisen Switzerland as of 1 January 2019, which would give Avaloq 100% ownership of ARIZON.

Founded at the end of 2014 as a joint venture between Avaloq and Raiffeisen, ARIZON’s mission is to develop and operate a universal banking platform and provide processing services for the Raiffeisen Group.

Under the agreement in principle, ARIZON would become a wholly-owned subsidiary of the Avaloq group. ARIZON’s management would remain unchanged and there would be no reductions in headcount as a result of the transaction.

As part of the proposed transaction, ARIZON will enter into a service agreement with Raiffeisen through the end of 2024 for the further development of the banking platform and delivery of processing services.

As part of a previous agreement between Avaloq and Raiffeisen Switzerland, 255 Raiffeisen banks in Switzerland will be migrated to the universal banking platform developed and operated by ARIZON.