NEC Corporation (TSE:6701) agreed to acquire WP/AV CH Holdings I B.V. from A-family S.? r.l. and WP RR Financial Investments II B.V. for CHF 2.1 billion on October 3, 2020. NEC will fund the acquisition from its available cash, and that it will redeem Avaloq's outstanding debt in full. The transaction was structured as an auction of which NEC was the winner. WP/AV CH Holdings I B.V. reported net liabilities of CHF 137.4 million, total assets of CHF 664.5 million, net sales of CHF 609 million, EBITDA of CHF 69.2 million and operating profit of CHF 0.8 million for the year ending December 31, 2019. The team of Avaloq will be joining the NEC Group. This transaction will not lead to a reduction in Avaloq's workforce. As part of the?acquisition, NEC Corporation has installed a new Board of Directors with NEC's executive vice president, Masakazu Yamashina, as the new chairman of Avaloq. Along with a new chairman, there will be four new members to the Board, namely Tomoki Kubo, Tomonori Hira, Daichi Iwata and Asako Aoyama. Francisco Fernandez and Peter Schopfer will remain members of the Board of Directors of Avaloq Group AG. Avaloq group AG, subsidiary of WP/AV CH Holdings I B.V. will continue to operate as its own entity, headquartered in Switzerland. The transaction enables Avaloq to accelerate innovation and enlarge footprint around the globe. Transaction is subject to confirmation of necessary procedures and approvals for each organization and regulatory approvals. Transaction is expected to be completed by April 2021. Adrian Maguire of Kirkland & Ellis International LLP acted as legal advisor to Warburg Pincus LLC, indirect owner of WP/AV CH Holdings. Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. acted as legal advisor to NEC Corporation. Philippe Weber, Philipp Candreia and Andr?s Gurovits of Niederer, Kraft & Frey and Koki Yamada of Tokyo International Law Office acted as legal advisors to NEC Corporation. Heinz Sch?rer, David Oser, Marcel Dietrich, Georg Rauber and Luca Dal Molin of Homburger AG acted as legal advisor to WP/AV CH Holdings, A-family S.? r.l. and WP RR Financial Investments II B.V. Michael Trippel, Lukas Roesler, and Laura Widmer of B?r & Karrer acted as legal advisor to Avaloq group. Witzel Erb Backu & Partner Rechtsanw?lte acted as German legal advisor, Stephenson Harwood as UK legal advisor and Rajah & Tann as Singapore legal advisor to Avaloq.