21 December 2017
Avaloq strengthens its governance: Francisco Fernandez hands over Group CEO position to Juerg Hunziker, and concentrates on Group Chairman role
Francisco Fernandez had onboarded Juerg Hunziker as the Deputy Group CEO and Group CMO in 2016. After two years of successful collaboration he has appointed Juerg Hunziker as Avaloq’s new Group CEO, effective 1 January 2018. Francisco Fernandez will concentrate on his role as the Group Chairman and focus on innovation, strategy and acquisitions. Avaloq is further strengthening its corporate governance to facilitate growth and has a well attuned leadership team to prepare the company for a potential IPO in the coming years.
Avaloq’s mission is to enable banks to operate in an efficient and fully compliant way, and to facilitate their digital transformation. Avaloq empowers the financial sector by industrialising its operations, both through scalable services and through leading cloud-based software solutions, delivered as a service.
On its journey to fulfil that mission, Avaloq has successfully transformed towards an integrated service provider. Over two thirds of the company’s revenues originate from the Software as a Service (SaaS) and Business Process as a Service (BPaaS) offerings. Avaloq will build on this business model that provides long-term predictable revenues and will continue to consequently drive the extension of its network of service centres.
Leader in SaaS and BPaaS for the financial industry
The success of the transformation is also reflected in the financial results: Avaloq is on track for 2017 and on target for achieving an all-time high in terms of revenues, profitability and liquidity. Highlights of its H1 2017 results, announced in August, included an increase in adjusted EBITDA of 257% to CHF36.3 million and a 3% increase in total revenue year-on-year to CHF253.1 million. On its journey to the capital market, Avaloq has strengthened its capital and shareholder structure. In March 2017, Avaloq welcomed global private equity firm Warburg Pincus as a new shareholder. In the same spirit of consequent governance, Avaloq has recently turned its cooperation model with Swiss banking group Raiffeisen, which was a shareholder since 2015, into a pure customer-supplier relationship.
As Avaloq is about to enter the next phase in accelerating growth – both organically and through potential acquisitions – the company is implementing a new governance structure that strengthens both its operational and strategic management.
Francisco Fernandez, Chairman of the Board of Directors at the Avaloq group since summer of 2017, will concentrate on this role going forward and thus continue the future development of Avaloq in the spirit of the group’s governance. He hands over the position of Group CEO to Juerg Hunziker.
Executing the growth strategy with the customer at the centre
Francisco Fernandez will focus on the long-term strategy for Avaloq and the continuation of its steep growth rate, as well as on innovation and acquisitions. Juerg Hunziker will lead the execution of the Avaloq strategy, harnessing the power and the capabilities of the over 2,000 Avaloq staff (FTE). He will focus on expanding the company’s global business and facilitate the integration of new business following potential acquisitions. Pursuing Avaloq’s international expansion will be a further key focus area for Juerg Hunziker, while also working closely with the already strong customer base in Switzerland.
Juerg Hunziker is a diligent and proven expert and experienced international manager that stands out through his strong execution skills. His impressive track record at SunGard is further proof of his ability to keep the customer at the centre of all activities and focusing on customer engagement.
Francisco Fernandez says: “Today, Avaloq is stronger than ever. Juerg and myself are a well attuned team, and with him as the Group CEO, we have found the perfect setup to drive Avaloq’s growth. Juerg knows how to consequently execute a strategy. He is a very strong leader, a pragmatic entrepreneur and a true industry expert. I will continue to dedicate all my energy to the acceleration of Avaloq’s growth, success and driving innovation.”
Juerg Hunziker adds: “I am honoured by my appointment and humbled by the trust placed in me. Avaloq is perfectly positioned for future growth. Following in the footsteps of a visionary like Francisco is a unique chance I am very much looking forward to. Together with the great Avaloq team, we will continue to turn Francisco’s vision into reality and serve the industry with the technology and services it needs today and tomorrow.”