Target Information

Basware, a prominent leader in accounts payable (AP) automation and invoice processing for nearly 40 years, has successfully completed the acquisition of Glantus Holdings plc. This strategic move aims to revolutionize the financial technology landscape, particularly in AI-driven AP automation. Glantus specializes in audit recovery and fraud prevention in the North American and European markets, employing advanced AI technologies to assist businesses in recovering lost funds due to duplicate payments, missed discounts, cancelled invoices, incorrect pricing, refunds, and VAT reclaims.

The acquisition received formal approval from the High Court of Ireland on October 10, 2023, and finalized on October 18, 2023. Following this transaction, Glantus has been delisted from the London Stock Exchange, with both the Glantus board and shareholders expressing their support for the acquisition.

Industry Overview

The AP Automation market is currently experiencing rapid growth. Analysts project an annual increase of 10.8% over the next five years, anticipating a global market value of $5.8 billion by 2029. North America is expected to contribute $2.1 billion, while Europe is projected to account for $1.7 billion, together representing more than two-thirds of the worldwide market.

Compounding the growth of this sector are the persistent challenges posed by invoice fraud and overpayment errors. Reports indicate that over 70% of businesses fall victim to invoice or payment fraud each year, with AP teams being particularly vulnerable. Approximately 58% of these departments face compromises annually, mostly due to vendor impersonation scams.

To combat fraud effectively, automated AP processes are considered invaluable, with 72% of finance leaders affirming that such systems enhance their organizations' protective measures. The landscape for AP automation continues to expand, fueled by demand for improved efficiency and security in financial operations.

Rationale Behind the Deal

The acquisition of Glantus presents an opportunity for Basware to strengthen its position in the growing AP automation market. By integrating Glantus’s advanced expertise in audit recovery and fraud prevention, Basware will be able to deliver enhanced value to its customers, including cost-saving opportunities and improved fraud detection capabilities. Together, these firms aim to offer a comprehensive solution that addresses the complexities of invoicing and financial operations.

Investor Information

Basware has long been recognized for its commitment to innovation in financial technology. Under the leadership of CEO Jason Kurtz, the company aims to accelerate growth and enhance customer value by leveraging strategic partnerships and acquisitions. This move underscores Basware’s dedication to providing cost-effective solutions that meet the evolving needs of CFOs and finance teams.

Meanwhile, Maurice Healy, the Founder and CEO of Glantus, has endorsed the acquisition, acknowledging the alignment in goals and vision between the two companies. The collaboration is set to advance Basware's capabilities while benefiting Glantus’s existing client base.

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In our expert opinion, the acquisition of Glantus by Basware is a strategically sound investment that positions both companies favorably within the rapidly expanding AP automation market. The combined expertise in financial technology, particularly in audit recovery and fraud prevention, will enable Basware to enhance its service offerings and provide greater value to clients. This will ultimately lead to increased customer satisfaction and retention.

Moreover, the demand for errors and fraud prevention tools is at an all-time high, particularly as businesses grapple with the financial implications of such setbacks. Basware's initiative of integrating Glantus’s technology is timely, addressing a critical need in the industry while also providing a competitive advantage.

Lastly, the anticipated growth trends within the AP Automation sector further strengthen the argument for this acquisition. With projected market expansion and intense competition, the collaboration promotes a proactive approach that is essential for sustaining relevance and leadership in this dynamic field.

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