SAP to Secure Majority Stake in Working Capital Firm Taulia

Business processes software firm SAP is planning to secure a majority stake in working capital management company Taulia for undisclosed terms, according to a press release on Thursday (Jan. 27).

The acquisition will support the further expansion of SAP’s business network and its tools to assist chief financial officers and help both firms offer clients enhanced access to liquidity and better cash flows.

Under deal the deal, Taulia will continue to operate independently under its branding as part of the SAP Group. Cédric Bru will remain CEO of Taulia and SAP CFO Luka Mucic will become Chairman of the Board.

See also: 25% of CFOs Update Forecasts on a Weekly Basis

“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,” SAP CFO Luka Mucic said.

“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,” Mucic added.

Taulia offers early payment by tapping supply chain and accounts receivable finance, as well as dynamic discounting. The firm has partnerships with numerous banks, including J.P. Morgan and UniCredit. The demand for working capital management and early payments has escalated due to supply change disruptions and a strained economy.

Read more: As Business Payments Go Digital, Buyer-Supplier Relationships Get Stronger

Bru said that combining with SAP will enable both firms to work with more businesses, further SAP’s vision, and hasten Taulia’s goal of “helping businesses thrive” by freeing up cash flow caught in the supply chain.

“Cash is the oxygen businesses need to breathe during challenging economic cycles and growth sprints. Coming together with SAP will help accelerate Taulia’s mission of helping businesses thrive by unlocking liquidity trapped in supply chains.”