Swiss fintech firm Avaloq is weighing a sale or an initial public offering (IPO) next year, reported Reuters.
The move comes as a response to its largest shareholder Warburg Pincus’ plans to sell its stake.
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Sources told the news agency that Warburg Pincus will auction off its 45% Avaloq holding early next year.
However, Avaloq and Warburg Pincus did not confirm the development.
Warburg Pincus, an American private equity group, acquired a 35% interest in Avaloq in March 2017. In November of the same year, it purchased an additional 10% in the Swiss fintech.
Financial details of the transactions were not divulged at that time.
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By GlobalDataAvaloq founder Francisco Fernandez, senior management and its employees own the majority stake in the company.
Earlier this year, Avaloq CEO Juerg Hunziger hinted at the possibility of an IPO or sale within four years.
Avaloq focuses on delivering core banking software, software as a service (SaaS) and business process as a service (BPaaS) solutions.
According to the company’s website, Avaloq offerings are used by more than 150 clients with $4.5 trillion in assets under management.
Its clientele includes Barclays, BBVA, HSBC, Deutsche Bank, Rothschild, Societe Generale and Vontobel.
In July, the Swiss firm partnered with cybersecurity technology company OneSpan to equip its banking clients with more capabilities to control financial fraud.
This year, Avaloq also launched avaloq.one platform to improve collaboration between fintech companies and financial institutions.
