Mergers & acquisitions advice in connection with the acquisition of a minority stake in a banking solutions company
Strategic and financial advisory mandate in connection with the acquisition of a minority stake in a Swiss banking software publisher by a cantonal banking institution.
Mandate description
Mergers & acquisitions advisory mandate conducted on behalf of a Swiss Regional Bank in the context of the acquisition of a strategic minority stake In the capital of a tech company specialized in the development of integrated banking solutions.
This operation was aimed at strengthen the collaboration between the bank and the technology company, already a historical partner, and to consolidate the position of the purchaser within the Swiss fintech ecosystem.
The target company, active for several decades, is equipping today a number of financial institutions and occupies a central position in the field of digital banking platforms.
The operation was part of a long term investment strategy, oriented towards innovation, cybersecurity and the digital transformation of banking infrastructures.
Key issues
The main challenges consisted of:
• analyze the strategic value of a minority stake in a technology company operating in a highly concentrated market;
• model value creation scenarios linked to technological cooperation and equity participation;
• structure the transaction to ensure regulatory compatibility and appropriate governance within the target's board of directors;
• assess the conditions for entry into capital in a context of sustained valuation of the fintech sector;
• and anticipate regulatory implications linked to changes in the Swiss legal framework governing banking software infrastructures and data protection.
Approach and results
The mandate covered the entire transaction process:
- strategic and financial analysis of the investment opportunity;
- review of financial statements and modeling of valuation scenarios;
- coordination of regulatory and technological due diligence;
- negotiation of contractual terms and preparation of shareholder agreements.
The purchaser finalized the transaction under favorable conditions, while securing institutional representation within the target's governance.
This transaction illustrates a targeted and sustainable investment approach, aligned with the desire to modernise banking services and support local innovation.
The transactions shown include those completed by, or with the involvement of, Hectelion team members in current or previous professional roles. They are presented for illustrative purposes only and do not imply exclusive responsibility by Hectelion.
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The transactions presented were carried out by, with the contribution of, or with the participation of members of the Hectelion team in the context of functions performed currently or previously.