Europe’s largest software company SAP is strengthening its activities in the financial sector. The majority stake in Taulia serves as a means to the intended takeover.
The San Francisco-based company specializes in software to improve liquidity, working capital and working capital. To put it simply, suppliers should get their money faster.
In addition, Taulia’s financial engineering solutions support things like supply chain financing, dynamic discounting, or accounts receivable financing. The necessary financing of the receivables is provided through financial partners, including JP Morgan or UniCredit. These cover the time between a very rapid settlement of supplier payments and later settlement of invoices by buyers within the payment period.
Independent company in the SAP group
According to SAP, Taulia will become the core of the SAP Working Capital Management portfolio. The integration with the CFO solution suite and the business network, which includes the procurement platform Ariba, is to be strengthened. In addition, the solutions of the future subsidiary should continue to be available independently in order to serve non-SAP customers. In fact, Taulia’s current business is already showing a certain SAP bias, as more than 80 percent of the US fintech’s customers are users of a Walldorf-based ERP system.
The parties involved have agreed not to disclose the financial details of the transaction. According to reports from business gazettes, it should cost SAP less than a billion US dollars to get about 95 percent of Taulia. JDMorgan will remain on board to shareholders, as will Taulid boss Cédric Bru. SAP says it is open to other financial institutions becoming strategic partners and shareholders of Taulia. However, the Walldorf-based company does not want to give up its majority stake.
(fo)