ZURICH/FRANKFURT (Reuters) – Private equity group Warburg Pincus is working with Goldman Sachs and Barclays on the planned 2020 sale or initial public offering of Swiss banking software company Avaloq, people close to the matter said.
The buyout group, which owns 45% of Avaloq, is expected to launch an auction in the first quarter of 2020. Avaloq founder Francisco Fernandez, management and employees also hold shares in the company.
Warburg Pincus, Avaloq and the banks declined to comment.
Avaloq Chief Executive Juerg Hunziger had said this year that the company was preparing for an IPO or sale within the next two to four years.
Avaloq, founded in 1985 as BZ Informatik, supplies software for financial institutions such as Barclays, BBVA, Deutsche Bank, HSBC Rothschild, Societe Generale and Vontobel. Its software programs manage $4.5 trillion in client money.
In the first half of 2019, Avaloq reported a 5% year-on-year increase in revenues as well as core earnings, to 288 million francs in sales and adjusted EBITDA of 38 million.
Larger and more profitable rival Temenos trades at 25 times its expected core earnings.
Reporting by Oliver Hirt and Arno Schuetze. Editing by Jane Merriman