Flywire has announced plans to acquire Invoiced, aiming to strengthen its B2B payments division. This move is expected to enhance Flywire’s software suite for its global clients and target market. Flywire estimates this market to encompass around $10 trillion in global payment volume.
Invoiced Integrates Major Systems
Invoiced offers a SaaS platform designed to automate Accounts Receivable (A/R) processes. The platform handles invoice management, payer communication, and payment reconciliation.
It integrates with major accounting and ERP systems, such as Oracle’s NetSuite, Sage Intacct, and Microsoft Business Dynamics. Invoiced’s diverse client base and recent recognition as the top A/R automation software by G2 Crowd highlight its successful track record.
Flywire intends to combine Invoiced’s A/R automation capabilities with its own global payment network. This network supports various payment methods in over 140 currencies across 240 countries and territories. The merger is projected to deliver a comprehensive software and payments solution, aiming to streamline finance department workflows.
Investment in A/R Rises
Investment in A/R solutions is growing as businesses seek to improve financial operations and cash flow. Industry research estimates the global A/R Automation market will increase from USD 3.3 billion in 2022 to USD 6.5 billion by 2027, with a compound annual growth rate of 14.2%.
This growth reflects the importance of A/R solutions in boosting efficiency, reducing errors, and supporting financial decisions. The need for compliance with tax regulations and streamlined cross-border transactions further drives demand for advanced invoicing solutions.
The acquisition aligns with Flywire’s strategy to enhance its organic growth and expand its business lines. Flywire anticipates Invoiced will contribute approximately $2 million in revenue with software-like gross margins in FY 2024.
Despite Invoiced’s strong Adjusted EBITDA margins, Flywire plans to reinvest most of these funds to support business growth. Further details will be provided in the upcoming earnings call scheduled for August 6, 2024.
