SAP, the largest software company in Europe, is strengthening its activities in the financial sector. The majority stake in Taulia acts as a vehicle for the intended acquisition.
San Francisco-based company specializing in software to improve liquidity, working capital, and working capital. Simply put, suppliers should get their money quickly.
Additionally, Taulia’s financial engineering solutions support things like supply chain financing, dynamic discounting, or accounts receivable financing. Funding for receivables is provided through financial partners, including JP Morgan or UniCredit. This covers the time period between the very fast settlement of supplier payments and the settlement of invoices by buyers later during the payment period.
An independent company in the SAP group
According to information from SAP Taulia is set to become the core of the SAP working capital management portfolio. Integration will be enhanced with the CFO’s suite of solutions and business network, which includes the Ariba procurement platform. Additionally, future subsidiary company solutions must continue to be available independently in order to serve non-SAP customers. In fact, Taulia’s current business already shows a certain SAP bias, as more than 80 percent of US fintech clients are Walldorf-based ERP users.
The parties involved agreed not to disclose the financial details of the deal. According to reports from Business Journal, it should cost SAP less than $1 billion to acquire about 95 percent of Taulia. JDMorgan will remain at the top of the list of shareholders, as will Cedric Brou, president of Taulid. SAP says it is open to other financial institutions to become strategic partners and shareholders in Taulia. However, the Walldorf-based company does not want to give up its majority stake.