10 Jul Basware on the acquisition trail
Basware is looking in good shape according the their H1 2011 interim report and Q2 earnings, just released and it seems to be in an acquisitive mood. Their numbers show continued consistent growth in financial results with a net sales growth of 7.2% to EUR 53 million compared to H1 last year.
In the first half of the year, Basware saw a growth of 43% for its Connectivity Services and Software as a Service (SaaS) operations, with the volume of e-invoice and purchase message transactions through the services equating to EUR 9.4 million. In the second quarter, transaction volumes and start-up fees for services increased by 80.5%, equating to a growth of 38.8%. Geographically, Basware saw strongest growth in North America and Australia, which grew by 14% in H1 2011.
Basware CEO, Ikka Sihvo commented: “Sales of SaaS solutions reached a record high number, which will continue to have a positive impact on the development of services net sales in the future. The shift in the demand from license sales to SaaS solutions has grown stronger during 2011, as shown by the substantial increase in transaction volume, which will support our long-term growth target of 50% in SaaS and Connectivity Services. Basware software offers a competitive edge, thanks to the integrated offering consisting of new added-value products and services.”
As a footnote to Basware’s press release they claim that for the rest of 2011, they are aiming to consolidate their international growth by increasing their focus on acquisitions in their strategy and organization, and to strengthen this activity, a new executive team-level M&A function has been established.
There is a mood of optimism about the growth of B2B generally, e-invoicing in particular, and Basware’s figures are a reflection of this. There is considerable opportunity for consolidation amongst the supplier networks especially in Basware’s home territory in Europe and this, together with the huge acquisition that Ariba made last year with Quadrem, the fact that banks are beginning to sit up and take notice, points to what could be an interesting and exciting ride for many over the next 18 months.