Sidetrade acquires US-based CreditPoint Software to disrupt B2B
credit risk market
Acquisition catalyzes disruptive real time B2B credit
risk management solutions
Enhances Sidetrade’s offer with the most advanced
solution and responds to booming B2B e-commerce market
Sidetrade strengthens position in North
America
Accretive acquisition
Sidetrade (Euronext
Growth: ALBFR.PA), the global leader in AI-powered Order-to-Cash
solutions, has announced that it has finalized an agreement to
acquire the entire business of CreditPoint
Software, a leading provider of
real time B2B credit risk management solutions.
Two years on from the Amalto takeover, Sidetrade
gains a stronger foothold in North America with the acquisition of
CreditPoint Software activities.
Olivier Novasque, CEO of
Sidetrade, said: "By acquiring
CreditPoint Software, Sidetrade has undoubtedly enhanced its
solution for B2B credit risk management and we are in pole position
to take advantage of the boom in B2B e-commerce. After placing
artificial intelligence at the core of our Collection, Disputes and
CashApps solutions, we are now shaping the future of B2B credit
risk management together with CreditPoint Software's teams as we
build on the analysis from our Data Lake of over $4.6 billion worth
of B2B transactions. Our technological advantage in AI over our
competitors will only continue to assert itself and become even
more evident. Working in tandem, the talents and technologies of
both groups will enable Sidetrade to cement its global leadership
position in Order-to-Cash.”
Introducing CreditPoint Software and its
state-of-the-art platform for instant credit risk
management
Founded in 2006 in the city of Tulsa, Oklahoma,
CreditPoint Software is an American software company specializing
in comprehensive B2B credit risk management solutions.
Following a decade of substantial R&D
investment, CreditPoint Software has developed one of the
world-leading cloud-based platforms that leverages real time
connection and monitoring for over 20 credit rating agencies
worldwide including Dun & BradstreetTM, CreditsafeTM,
ExperianTM, EquifaxTM, TransUnionTM as well as S&P and
MoodysTM. By standardizing external data from multiple sources
within a single repository, CreditPoint Software makes it possible
for companies to combine this information with their internal
financial and customer data on credit risk exposure. This enables
Credit Management teams to automate and streamline decision-making,
thanks to the platform's unlimited configuration options, resulting
in the ability to auto decide up to 100% of initial, increase and
renewal decisions. The CreditPoint suite of products also includes
highly configurable personalized credit application templates.
Supported by customizable business rules and
data points, the decision engine within CreditPoint Software
secures compliance with internal credit delegations based on
delegation of authority. CreditPoint Software also schedules
regular reviews of current credit limits for existing clientele,
while providing the option for sales teams and organizations to be
made aware of credit availability so they may potentially generate
additional sales. The end result: selling more to the best
customers and pricing risk into the customers that may not be as
healthy financially as others.
What's more, CreditPoint Software's "Onboarding
Credit Application" facilitates the initial process for customers
to apply for a credit line, irrespective of whether the B2B
purchasing experience is delivered offline or online. In an
increasingly digitalized landscape, where digital transformation is
key, providing real-time credit approval during the onboarding
process of new customers becomes an essential competitive advantage
for all businesses.
To date, CreditPoint Software has an active
portfolio of around 30 customers in North America and serves
multinationals such as Nutrien, BP, Edelman and Caterpillar.
In the fiscal year 2023, CreditPoint Software
expects to break even, with revenue topping the $2 million
mark.
John C. Powers, CEO of CreditPoint
Software, commented:
"This deal with Sidetrade is a major step
forward in our commitment to providing leading-edge solutions for
B2B credit risk management. In today's uncertain economic
environment, companies seek efficient solutions that anticipate
risks and automate decisions to secure and increase their revenue
streams. By leveraging Sidetrade's Data Lake with its predictive
payment intelligence map of 21 million companies worldwide, we will
deploy artificial intelligence in all our decisioning to provide
companies with the risk management solution of the future.
Propelled by Sidetrade's sales force and implementation resources,
we will further expand this new offering throughout the United
States and bring it to the European market for the first time."
Contextualizing CreditPoint Software,
the solution designed for the B2B e-commerce boomWhile
McKinsey & Company estimated that the majority of B2B
corporations had next to no e-commerce capabilities at the start of
the pandemic, the past two years have seen a rapid trend reversal.
In its 2021 B2B Pulse Report, the US consulting firm found that 65%
of B2B companies across all sectors offer e-commerce
capabilities.
A DHL study also reported that by 2025, 80% of
all B2B sales interactions between suppliers and professional
buyers will take place digitally, representing a giant and
unprecedented leap forward. And in its 2022 report, Statista
expects total B2B e-commerce purchases to exceed $4.6 trillion in
2025. Clearly, e-commerce is no longer just a trendy new channel
for B2B companies to discover, but instead an essential effective
and strategic sales tool.
Compared to B2C e-commerce, B2B e-commerce
places more importance on credit and payment terms. A series of
checks must be performed in real time to validate an order.
However, managing such procedures instantly requires a step-by-step
process. The latter involves identifying the company, integrating
external financial data, decision-making and delegating approval
based on the total order amount.
Nevertheless, across the globe, very few
companies can implement a solution to overcome the limitations of
B2B e-commerce and offer a customer experience to match the B2C
shopping experience.
"The boom in e-commerce has revolutionized sales
and consumption patterns. In B2B, the growth of e-commerce requires
companies to find the right solution for the right emerging
expectation. You need to determine an acceptable payment delay to
minimize risk and instantly maximize sales." commented
Olivier Novasque, CEO of Sidetrade. "For B2B companies
that want to continue leading the way in their sectors, e-commerce
is no longer just a nice to have, but an essential requirement. We
will support them by utilizing our teams and the technology of
CreditPoint Software. No matter the sector, it is a pressing
need."
Focusing on the accretive acquisition of CreditPoint
Software asset
This acquisition will be made in cash for an
estimated €3 million and paid in part on the signing of the
agreement with the rest scheduled for end-2023, which is subject to
certain customer renewals. The amount includes an earn out based on
the sales achieved by Sidetrade for CreditPoint Software's solution
over the next three years.
Sidetrade is financing the transaction through
its cash position, which totaled €36 million (€12 million in
treasury shares) as of June 30, 2023.
The transaction is part of the Group's Fusion
100 strategic plan which targets Annual Recurring Revenue ("ARR")
of $100 million by end-2025. Not only is it a catalyst for
Sidetrade's product strategy, but also its target revenue for North
America of close to $14 million in 2023 which will bolster the
Group's presence in the United States.
Sidetrade
Contacts Investor Relations
Christelle Dhrif
00 33 6 10 46 72 00
cdhrif@sidetrade.com
Media
Relations
Rebecca Parlby
+44 7824 5055 84
bparlby@sidetrade.com
About
Sidetrade
(www.sidetrade.com)Sidetrade
(Euronext Growth: ALBFR.PA) provides a SaaS platform dedicated to
securing and accelerating cash flow. Sidetrade’s next-generation
AI, nicknamed Aimie, analyzes $4.6 trillion worth of B2B payment
transactions daily in the Sidetrade Cloud to predict customer
payment behavior and the attrition risk of more than 21 million
companies worldwide. Aimie recommends the best cash collection
strategies, intelligently automates actions on the Order-to-Cash
process, and dematerializes customer transactions to enhance
productivity, performance and working capital management. Sidetrade
has a global reach, with 300 talented employees based in Paris,
London, Birmingham, Dublin, Houston, and Calgary, serving global
businesses in more than 85 countries. Amongst them: Tech Data,
KPMG, Nespresso, Hearst, Expedia, Criteo, Manpower, Securitas,
Randstad, Engie, Veolia, Inmarsat, and Bidfood.Sidetrade is a
participant of the United Nations Global Compact and adheres to its
principles-based approach to responsible business.For further
information, visit us at www.sidetrade.com and follow us on Twitter
@Sidetrade.
About
CreditPoint Software
(www.creditpointsoftware.com)CreditPoint
Software was founded in 2006, by a former credit professional, who
realized there was a better way to help companies manage their
credit and collections processes. From small and medium-sized
companies, all the way up to Fortune 50, CreditPoint Software
serves a myriad of business types and sizes. With 20+ years of
experience, CreditPoint Software works with B2B companies to
minimize risk and reduce DSO by streamlining the credit risk
management process from decisioning to monitoring and collections.
CreditPoint Software has helped businesses across industries
increase workflow efficiency, gain transparency, and ultimately
save millions in bad debt reduction and productivity increases
In the event of any
discrepancy between the French and English versions of this press
release, only the French version is to be taken into account.
- Sidetrade acquires US-based CreditPoint Software to disrupt B2B
credit risk market
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