SAP SE (NYSE: SAP) announced its intent to acquire a majority stake of Taulia, a leading provider of working capital management solutions. The move is aimed at giving companies better access to liquidity and improving their cash flows.
The acquisition expands SAP’s Business Network and strengthens SAP’s solutions for the CFO office. Taulia will operate as an independent company with its own brand in the SAP Group; Cédric Bru will remain CEO of Taulia, SAP CFO Luka Mucic will become Chairman of the Board.
Taulia offers early payment through supply chain finance, dynamic discounting and accounts receivable finance. Challenging economic conditions have significantly increased demand for early payment and the market for working capital management has seen strong growth.
Taulia is recognized for its leading technology and has one of the broadest platform and solution portfolios in the working capital management market.
SAP to reap big from Taulia’s strong ecosystem
SAP CFO Luka Mucic was positive of acquiring Taulia and made these remarks.
“Taulia strengthens our portfolio and adds value to a point that is key to every company: financial flexibility and stability. They contribute to making supply chains more resilient.”
“By combining the deep working capital management expertise of Taulia with SAP’s broad CFO solution portfolio and the integration into our core business software and Business Network solutions, we are well positioned to become a leader in working capital management.”
“We will offer these capabilities at scale to help businesses improve their financial position.”
SAP will strengthen the integration with Taulia, both for the SAP Business Network and the CFO solution suite, to become the core of SAP’s working capital management portfolio.
Taulia’s solutions will continue to be available standalone so that non-SAP customers can continue to benefit from Taulia’s portfolio. Cédric Bru, Taulia CEO is happy to work with SAP.
“I am delighted by our combination with SAP and its broadened ecosystem to serve more businesses and contribute to SAP’s vision. Cash is the oxygen businesses need to breathe during challenging economic cycles and growth sprints to better horizons.”
“Coming together with SAP will help accelerate Taulia’s mission of helping businesses thrive by unlocking liquidity trapped in supply chains especially in these uncertain times.”
Despite SAP onboarding, banks remain strategic partners
While SAP is acquiring a controlling majority of Taulia, J.P. Morgan’s relationship with Taulia remains unchanged, and the bank will continue to maintain its equity stake in the fintech.
“This news is exciting for both Taulia, our successful strategic partner, and SAP as the new majority owner,” said Stuart Roberts, Global Head of Trade & Working Capital, J.P. Morgan.
“With SAP, we expect the strategic alliance between J.P. Morgan and Taulia will unlock new opportunities for us to serve our clients, and to inject and redeploy liquidity to suppliers as the world continues to manage impacts from the pandemic on the global supply chain.”
SAP will invite additional financial institutions to run their clients’ working capital management business on the platform. The setup as an independent company will provide flexibility to invite further strategic banking partners to also become equity partners in Taulia.
The move also benefits the SAP ecosystem: As suppliers, SAP customers can improve their liquidity through early payment options with predictable off-balance sheet funding.
As buyers, they can make full use of payment terms while strengthening their relationship with suppliers. Funders, such as banks, can pursue attractive investment opportunities in short-term financing of large credit-worthy businesses.
SAP intends to embed a range of financial services for banks and insurance companies into platforms. SAP’s strong partner ecosystem, particularly SAP Fioneer will play a key role.
SAP and Taulia didn’t disclose financial details of the transaction.
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