Global purchase-to-pay and e-invoicing company Basware has acquired B2B e-procurement network Procserve for approximately €25.9 million.
The Basware Corporation signed the agreement to purchase the UK-based company today.
Procserve is primarily an e-procurement solution provider for the UK public sector and has been operating in that market for almost a decade. In 2014, its net sales amounted to approximately €9.6 million. The company, which employs 61 people, runs e-procurement networks used by more than 33,000 organisations to buy, sell, and share information within online communities.
The Basware Corporation, already a leading e-invoicing operator in the Nordics, Germany and the Benelux market, said the purchase will make it the market leader for the UK public sector.
The companies said in a statement that their existing networks will complement each other and “enable government bodies to operate more efficiently by automating the purchase-to-pay process, freeing up time and money that can be invested in frontline services”.
On 27 March, the Small Business, Enterprise and Employment (SBEE) Bill gained Royal Assent. This new law, the companies said, paves the way for widespread adoption of e-invoicing and e-procurement in the UK public sector.
Basware Corporation CEO Esa Tihilä, said: “We have witnessed a continued push from governments and the public sector, including in the UK, to adopt e-invoicing. Procserve has a very strong and recognised position and is a well-known service provider among governmental entities in the UK.”
Procserve CEO Nigel Clifford, added: “With annual expenditure of almost three quarters of a trillion pounds, the public sector is a key driver of the wider UK economy. Simplifying payment processes with e-procurement and e-invoicing will not only free up vital funds for public services, it will also improve financial transparency in government bodies at a time when taxpayers are demanding more accountability."
Basware anticipates that transaction and integration-related costs will exceed savings this year. In 2016 it expects cost synergies to be marginally net positive and said savings will relate to, for example, the creation of joined IT infrastructure and facilities.