Basware Corporation has on March 31, 2016 signed an agreement to acquire US based Verian Technologies LLC ("Verian"), a leading cloud-based e-procurement solution provider in the fast growing purchase-to-pay market. The acquisition will further strengthen Basware's market position in the US and is a strong fit with Basware's strategy to grow cloud business revenues in key markets. Verian will add new talent and additional e-procurement capabilities to Basware. The acquisition will extend Basware's network by offering our market leading commerce network and financing services to Verian's broad customer base.
Verian, headquartered in Fort Mill, South Carolina, is a leading provider of cloud-based and Software-as-a-Service procure-to-pay solutions with more than 150,000 users. Verian employs 75 people in the US.
The acquisition price is approximately USD 36.0 million (EUR 31.8 million equivalent). In 2015, the net sales of the acquired business amounted to approximately USD 10.5 million.
"Verian is a strong fit with Basware's strategy, cloud-focused business and culture. The acquisition will strengthen Basware's sales presence in the US, add new customers, talent and additional e-procurement capabilities to support the future growth of the two companies combined and the growth of Basware's network. Verian has a strong position in the industry with its 100% cloud-based purchase-to-pay and e-procurement solutions, with an annual SaaS subscription revenue growth rate of approximately 40 percent. Jointly we will continue to enable our customers to buy and pay for goods and services in a simplified, paperless, and cost-efficient way, through the network", says Esa Tihilä, CEO, Basware Corporation.
The transaction is expected to be completed on April 1, 2016. Part of the acquisition price will be paid in the form of shares of Basware. On the basis of the authorization granted by the annual general meeting of shareholders of Basware on March 15, 2016, Basware's Board of Directors will decide on the issuance of 180,707 new shares of Basware to the major owners of Verian, for a total value of approximately EUR 7.1 million based on Basware's closing share price of EUR 39.09 on March 30, 2016. The remainder of the consideration will be funded with cash. In 2016, Basware expects the non-recurring transaction and integration related costs of the acquisition to amount to c. EUR 1 million. The transaction is expected to be earnings per share accretive from 2017 onwards.
For more information, please contact:
Esa Tihilä, CEO, Basware Corporation
Tel. +358 40 480 7098
Basware (Nasdaq: BAS1V) is the global leader in providing networked purchase-to-pay solutions, e-invoicing and innovative financing services. Basware's commerce and financing network connects businesses in over 100 countries and territories around the globe. As the largest open business network in the world, Basware provides scale and reach for organizations of all sizes, enabling them to grow their business and unlock value across their operations by simplifying and streamlining financial processes. Small and large companies around the world achieve significant cost savings, more flexible payment terms, greater efficiencies and closer relationships with their suppliers. Find out more at www.basware.com/investors.
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Verian is a worldwide leader in purchase-to-pay solutions. Creating visibility and control over clients' indirect spending, Verian helps organizations achieve dramatic cost savings and contract compliance. Verian drives value beyond implementation by helping organizations bring every pocket of spend under management with our proven See-Manage-Save Approach. www.verian.com