Taulia’s solutions will continue to be made available as standalone to allow its non-SAP customers to benefit from its portfolio
SAP headquarters in Walldorf, Baden-Württemberg, Germany. (Credit: MichaelBr90/Wikipedia)
German software company SAP is set to acquire a majority stake in the US-based working capital management solutions Taulia.
Headquartered in San Francisco, California, Taulia provides early payment through supply chain finance, dynamic discounting and accounts receivable finance.
SAP said that Taulia has one of the broadest platform and solution portfolios in the working capital management market. It has also established an ecosystem of financial partners, including J.P. Morgan, UniCredit and other high-profile banks, to offer the required funding.
The transaction is expected to expand SAP’s Business Network and strengthen SAP’s solutions for the CFO office.
Following the completion of the transaction, Taulia will continue to operate as an independent company within the SAP Group.
SAP CFO Luka Mucic said: “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.
“By combining the deep working capital management expertise of Taulia with SAP’s broad CFO solution portfolio and the integration into our core business software and Business Network solutions, we are well positioned to become a leader in working capital management.
“We will offer these capabilities at scale to help businesses improve their financial position and seize growth opportunities.”
Taulia has been one of the main partners for SAP, with over 80% of its customer base using an SAP enterprise resource planning (ERP) system.
The company’s solutions will continue to be made available as standalone to allow its non-SAP customers to benefit from its portfolio.
The acquisition is also expected to benefit the SAP ecosystem, as it enables suppliers and SAP customers to enhance their liquidity position through early payment options with predictable off-balance sheet funding.
SAP stated that the transaction will keep JP Morgan’s relationship with Taulia unchanged and the bank will continue to maintain its equity stake in the fintech.
J.P. Morgan trade and working capital global head Stuart Roberts said: “With SAP, we expect the strategic alliance between J.P. Morgan and Taulia will unlock new opportunities for us to serve our clients, and to inject and redeploy liquidity to suppliers as the world continues to manage impacts from the pandemic on the global supply chain.”