Basware Corporation, stock exchange release, April 8, 2015 at 09:00
Basware acquires UK's leading e-procurement solution provider for the public sector Procserve
Basware Corporation has on April 8, 2015 signed an agreement to acquire Procserve, the leading e-procurement solution provider for the public sector in the UK. The acquisition price is approximately EUR 25.9 million. In 2014, the net sales of the acquired business amounted to approximately EUR 9.6 million.
"Basware is the global leader in providing purchase-to-pay and e-invoicing solutions and the leading expert for the public sector to support their e-invoicing and e-procurement initiatives across Basware markets. We have witnessed a continued push from governments and public sector, including the UK, to adopt e-invoicing as the technology is becoming more commonplace and the benefits are realised more widely. Procserve has a very strong and recognised position within the public sector and among e-procurement service providers and is a well-known service provider among governmental entities in the UK", explains Esa Tihilä, CEO, Basware Corporation. "As part of its strategy, Basware continuously supports organic growth with acquisitions in its key markets. This acquisition will make Basware the market leader for the public sector in the UK. Through the acquisitions over the recent years, Basware is already the leading e-invoicing operator in the Nordics, the Benelux market and Germany, and now Basware significantly strengthens its foothold in the UK."
Procserve, headquartered in London, positions itself as the leading eProcurement software solution provider focused on the public sector in the UK. Procserve's eProcurement networks are used by over 33,000 organisations to buy, sell, and share information within online communities. Procserve employs 61 people.
"By driving technology strategies underpinned by e-invoicing, the governments everywhere have a fundamental opportunity to boost economies, prevent fraud and ensure transparency in business. In the UK, e-invoicing is mandated from 2016. Public sector organisations in the UK process millions of payments each year, representing a significant allocation of public resources", says Tihilä. "Procserve's and Basware's cloud-based e-procurement solutions as well as Procserve Commerce Network and the open Basware Network complement each other seamlessly and they will 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. Basware and Procserve are both part of UK government's G-Cloud Digital Marketplace."
In 2015 the company expects the transaction and integration related costs to exceed the savings. In 2016 the company expects the cost synergies to be marginally net positive. The savings relate for example to the creation of joined IT infrastructure and facilities.
For more information, please contact:
Esa Tihilä, CEO, Basware Corporation
Tel. +358 40 480 7098
NASDAQ OMX Helsinki Ltd