Proactis Holdings expands bePayd further into French market
(PHD ) said it has signed a commercial partnership agreement which will position the company’s early payment service, bePayd, further into the French market.
The business spend management solution provider said it has signed the commercial partnership agreement with EPSA, an international sustainable performance expert.
EPSA operates across 30 countries and is the parent company of Experbuy, the first bePayd customer. Under the agreement EPSA will market the Proactis early payment service, bePayd, further into the French market, thereby extending the market reach of bePayd.
Matthieu Gufflet, EPSA’s Founder, said: "EPSA strengthens its cash optimisation offer through this partnership. bePayd offers the opportunity to increase operating profitability to buyers and improve supplier working capital solutions. The supply chain is effectively reinforced."
Commenting on the partnership Tim Sykes, Chief Executive of Proactis, said: “It's a further validation of Proactis' value proposition and EPSA's expertise and reach into the enterprise class French market will help accelerate the deployment and shape of bePayd quickly."
Earlier this month, Proactis reached an agreement with Café Bidco, a new group jointly owned by Pollen Street and DBAY Advisors, on the terms of a recommended cash offer by Bidco which would value the company at approximately £74.9m on a fully diluted basis.
Both Pollen Street and DBAY said they consider there to be ‘significant scope’ for increased adoption of business spend management solutions as firms increasingly seek to digitise processes, in particular in the mid-market where such solutions are less highly adopted than amongst larger corporates.
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Following the recommended cash offer from Pollen Street Capital and DBAY which has been accepted by Proactis, the company will be valued at around £74.9m on a fully diluted basis.
In April 2021, Gartner predicted growth of 19% pa ($123bn) for enterprise cloud apps, thus providing a strong tailwind behind Proactis’s Saas-based B2B spend management software.
Shares in Proactis Holdings have increased by nearly 60% in value since the start of 2021. The stock was trading 1.19% lower this morning at 73.12p following the announcement.
Proactis creates, sells and maintains software and services, which enables organisations to streamline, control and monitor all indirect expenditure. Its solutions are used in around 1,100 buying organisations globally from the commercial, public and not-for-profit sectors.
Proactis previously adopted a new go-to market strategy for each of its US, France and Germany territories which is designed to replicate that of the UK and Netherlands.
In its recent FY20 results, Proactis noted that it had made ‘substantial headway’ after seeing the first sales of its mid-market single platform solution in Germany and France.
The group cited a ‘record year’ in new business total contract value ("TCV") after securing an aggregate of £14.6m (FY19: £11.3m), a 29% increase secured in ‘virtually all markets.’
Proactis said this demonstrates ‘the effectiveness of its strategy, the resilience of the business model and the ability of its teams to deliver despite a change in working practices.’
In recent weeks, the company announced that it has signed a 3-year contract with an unnamed major German DIY retailer to provide its business spend management solution.
The business spend management provider said the win represents ‘a strategically important milestone’ as the second new German customer to sign up under that new strategy.
Proactis, whose solutions are used in around 1,000 global buying organisations from the commercial, public and not-for-profit sectors, said the solution will be deployed in Germany initially before being rolled out into new territories through Central and Eastern Europe.
On 10 February, Proactis said it had signed a three-year contract with an oil and gas services business in North America which it said represents “a strategically important milestone.”
While the name of the customer and value of the contract remain undisclosed, the business spend management solution provider said the contract win is significant because the client is the first in North America to sign up under the Group's new go-to market strategy. The contract marks entry into a new significant territory, which is a stated objective for Proactis.
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