Software group SAP (Systems Applications and Products in Data Processing) announced it will acquire a large stake in Taulia. While the acquisition price was not disclosed, the Chief Executive Officer of SAP, Christian Klein affirmed it is below $1 billion.
The acquisition is expected to be finalized in March 2022.
Taulia is a privately held US firm with international branches across the United Kingdom, Germany, Australia and Bulgaria. Talia specializes in working capital management solutions.
Taulia is expected to operate under its own brand within the SAP group, Cédric Bru will remain as Taulia's CEO. It is worth noting that SAP's former CEO, Léo Apotheke is serving as an Independent Director at Tulia.
“Taulia strengthens our portfolio and adds value to a point that is key to every company: financial flexibility and stability. With that, they contribute to making supply chains more resilient,” the CFO of SAP, Luka Mucic commented on the deal.
Approximately 87% of Taulia's customers already use SAP Enterprise Resource and Planning (ERP) systems. Among these customers are Nissan, Airbus and AstraZeneca.
High Demand for Early Payments
Since the pandemic Taulia has seen moderate demand for early payments it is offering suppliers. If a buyer has 30 days to pay an invoice, the buyer may earn some discount if paid within 7 days.
This improves the cash flow of the supplier while the customer is content with the discount. The pandemic has contributed to the transition of such automated business solutions.
'Rise with SAP' cloud solution was a great success. Launched in 2021, over 1,000 customers joined SAP. Among the names that joined the cloud solution, you could find Adobe, Samsung SDS and Standard Chartered Bank.
The strong sales may have allowed SAP to expand its reach with the major stake in Taulia.
In an effort to replicate the 'Rise to SAP' success, SAP Cloud for Sustainable Enterprises was announced on 11 January, 2022. The pandemic certainly contributed SAP as seen in Q4 of 2021. The launch of new products and acquisitions strive to fully capitalize over the rare window that was opened by COVID-19.
