François Jeannet interviewed on mas’ role in the BSI/Avaloq acquisition (08/2011)

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The following interview was conducted by Pius Bienz and posted on his blog.

On August 31, 2011, a major transaction in the Swiss IT resp. BPO sector was announced: Avaloq, the leading core banking software vendor, took over B-Source, one of the key providers of bank BPO services. The size of the transaction and its strategic relevance for the industry are reasons enough to address it here. In addition, this deal offers the opportunity to ask some fundamental questions about the (Swiss) bank BPO market.

The expert we interviewed about this transaction was directly involved in it: François Jeannet is a Founding Partner of ‘management and advisory services (mas)’, a leading Swiss consulting firm, who supported BSI, i.e. the Board of B-Source, during the whole process.

The interview will be presented in two parts: in the current post, after a short introduction (see video 1), the strategic objectives of the parties involved are presented – including from the client perspective (see video 2). In a second post to come, the transaction will be positioned in the context of the current evolution of the Swiss banking industry and the consequences for the BPO segment. Finally, the role and added value of ‘mas’ as an external advisor will be analysed with regards to this type of strategic decision.

Introduction

Strategic objectives

management & advisory services’ mandate started with the assessment of several strategic development options. Based on the choice made by the Boards of B-Source and BSI, the role of mas was to lead the project from the establishment of the letter of intent to the closing of the deal, in close collaboration with BSI’s Corporate Finance Department.

After a long period of small moves in the area of Banking BPO in Switzerland, BSI and Avaloq undertook a major step that may be a sign the long expected restructuring and consolidation of this industry has begun. This is good news for banks looking to outsource their IT and back offices, as it is preferable to have a smaller number of solid service providers on the market that are larger and therefore capable of leveraging economies of scale, allowing for cost advantages for their clients and their own profitability, which is a condition for sustainability in the long run.

This is the second part of the interview with François Jeannet who supported BSI, i.e. the board of B-Source, during the transaction.

The first part of this interview gives an overview of the transaction and analyses the strategic objectives of the parties involved. In this second post, the transaction is positioned in the context of the current evolution of the Swiss banking industry and the consequences for the BPO segment. Also, the role and added value of ‘mas’ as an external adviser is analysed with regards to this type of strategic decision.

The context of the Swiss banking BPO industry

The role of ‘mas’ as an external adviser

Please find further details in the official press release and don’t hesitate to contact us for further explanation.

PDF  Official Press release – Zurich/Lugano, August 31, 2011: Avaloq acquires a majority stake in B-Source from BSI

http://www.b-source.ch/en/