OB10 listing – it gets even more interesting

OB10 listing – it gets even more interesting

Posted by Pete Loughlin in AP Automation, e-invoicing, Electronic Invoicing, Spend Analysis 04 Sep 2013

The news that OB10 is to go public broke last night – actually a little prematurely – but now it’s official and Tungsten and OB10 have announced their intentions. I spent 20 minutes on the phone with a delighted Luke McKeever, OB10’s CEO, earlier today to understand the details of the deal that values OB10 at £99 million.

Actually, the details are a little mundane – their IPO is of course subject to raising the cash – but assuming they do it will be used to buy out existing shareholders, to build bigger better infrastructure and technology and bolster Express Payments with funds to directly fund some new and innovative supply chain finance offerings.

“That’s not mundane” you might think – but it is – it’s positively pedestrian compared to what Luke told me they are going to be doing in addition to all of this.

Purchasing Insight logoOK – even the IPO isn’t really mundane and I’m genuinely excited for the OB10 management team who have pulled off a brilliant deal with Tungsten. And make no mistake, this is no “exit” for the founders. This is just the next step. Even some of the old private investors are keen to retain in share in what is promised to be an exciting future.

So what was it that Luke mentioned that made that all fade into mundanity? It is this – spend analytics.

Tungsten are bringing something very interesting to the party – Tungsten analytics. I’m looking forward to getting sight of this toolset. It promises to be able to offer OB10 customers deep insight into not only their own spend profile but also allow them to benchmark their spend. Think about it, the amount of spend data that a supplier network has is phenomenal and with the right tools deployed in the right way that data can become extremely valuable.

The Tungsten deal doesn’t just give OB10 the cash to grow. It doesn’t just allow them to establish themselves as an important supply chain finance player,  it’s going to transform them from being a highly specialist e-invoicing network into powerful partner that can support their customers’ total spend management.

Pete Loughlin can be found on twitter @peteloughlin

  • Enrico Camerinelli September 4, 2013 at 2:41 pm /

    Spend management is not new as you know. Ariba has built its brand and market position on it. Interesting to see whether the “new” OB10 will have in its strategy the aim to implement what I called B2B Payments Networks in a recent blog http://www.finextra.com/Community/FullBlog.aspx?blogid=7663

  • john mardle September 4, 2013 at 6:48 pm /

    Fascinating and may threaten the likes of C2FO in the US and CrossFlow Payments in the UK?

  • Richard Fitzwilliam September 4, 2013 at 9:32 pm /

    Pete, how does your current employer feel about their data being sold?
    Used by a competitor?

    This aspect of networks had concerned me.
    This is not a Facebook picture of my cat – it’s corporate sensitive data.

  • Tony Duggan - Crossflow Payments September 6, 2013 at 10:11 am /

    Enrico – The strategy which you highlight in your Finextra article reflects the business model of Crossflow Payments. The above article written by Peter Loughlin along with other media attention, highlights that there is a huge opportunity for alternative solutions.

    Unlike other providers we implement Peer-to-Peer funding alongside our free integrated cloud transaction processing platform to support the supply chains of SME’s. This creates a ‘win-win’ situation for all parties involved.

  • john mardle September 6, 2013 at 12:21 pm /

    Tony,
    This could be a real game changer, particularly in the UK.

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