SAP expands its working capital management portfolio with an acquisition

SAP has reached an agreement to acquire a majority stake in Taulia, a provider of working capital management applications and services, to expand SAP’s Business Network portfolio and strengthen its offerings for the Director’s Office financial.

Taulia, based in San Francisco, will continue to operate as an independent company with its own brand within the SAP group. Cedric Bru will continue as CEO of Taulia while SAP CFO Luka Mucic will join Taulia’s board.

Terms of the acquisition were not disclosed. JP Morgan will retain a minority stake it holds in Taulia and will pursue a strategic alliance with the company.

[Related: Google Cloud Now A ‘Rise With SAP’ Strategic Cloud Partner]

News of the Taulia deal came as apps giant SAP reported sales rose 6% in the company’s fourth quarter, which ended December 31, 2021. Those gains were fueled by double-duty growth. cloud revenue figures and the early success of the company’s Rise with SAP business. cloud transformation and migration software and services that were announced a year ago.

“For a perfect trimester, all solutions must disappear. And that is indeed what has happened with double-digit revenue and cloud backlog growth across all of our major product categories,” CEO Christian Klein said in a Thursday call with financial analysts.

“This performance sets us up well for 2022. We expect cloud revenue to continue accelerating, with growth of up to 26% reflected in our forecast. These are very strong results during a challenging time for most businesses. demonstrate the trust our customers place in SAP and the unique value we deliver by helping them meet an unprecedented set of challenges,” said Klein.

Taulia’s working capital management solutions and services help businesses manage cash, improve liquidity, and gain better visibility into invoices and payments. The services offer e-invoicing, accounts receivable financing and dynamic discounting capabilities, helping buyers and suppliers “accelerate payments, improve supply chain health and unlock stranded cash”, depending on the company.

“Taulia strengthens our portfolio and adds value to a key point for every business: financial flexibility and stability. With this, they help make supply chains more resilient,” Mucic said in a statement. “By combining Taulia’s deep expertise in working capital management with SAP’s extensive portfolio of CFO solutions and integration into our core management software and enterprise network solutions, we are well positioned to become a leader in working capital management.”

Taulia is already an SAP partner with its solutions integrated into SAP software. More than 80% of Taulia’s customer base uses SAP ERP applications with Airbus, Nissan and AstraZenaca among their joint customers, according to SAP.

SAP said it will “strengthen the integration” between its own applications and Taulia, for both the SAP Business Network and CFO suite of solutions, “to become the core of SAP’s working capital management portfolio. SAP said it would continue to offer Taulia’s solutions on a stand-alone basis for non-SAP customers.

For the fourth quarter of fiscal 2021 (ended December 31, 2021), SAP reported revenue of €7.98 billion (US$8.89 billion), up 6% from to 7.54 billion euros (8.40 billion US dollars) in the fourth quarter of fiscal 2020. The company, however, reported a 25% drop in fourth-quarter profit to 1.45 billion euros (1.61 billion dollars) against 1.93 billion euros (2.16 billion dollars) a year earlier.

Fourth-quarter cloud revenue was 2.61 billion euros ($2.91 billion), up 28% year-on-year, SAP reported. Some 1,300 SAP S/4HANA customers were added during the quarter, about half of which were net new customers, bringing the total number of S/4HANA customers to more than 18,800.

The company entered into Rise agreements with SAP with 650 customers in the fourth quarter, bringing the total to 1,300, including Mahindra & Mahindra, CVS, Panasonic and Siemens. SAP said Rise with SAP was a major sales driver for S/4HANA Cloud during the quarter.

“Clearly, RISE is a resounding success in the market. And we’re just getting started,” Klein said on the earnings call. “Our massive on-premises installed base of over 30,000 ERP customers presents a significant opportunity for our RISE offering with SAP as these customers begin their cloud transformation. At the same time, RISE is attracting many new customers. »

For the full fiscal year 2021 (ended December 31, 2021), SAP revenue of €27.84 billion (US$31.03 billion), up 2% from 27, €34 billion (US$30.47 billion) in fiscal 2020. Profit for the year was €5.38 billion (US$6.00 billion) up 2% from compared to 5.28 billion euros (5.89 billion US dollars) a year earlier.

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