Quadient has acquired YayPay, a company that offers SaaS accounts receivable (AR) automation solutions for $A28 million in cash. The acquisition of YayPay will expand Quadient’s Business Process Automation offer, complementing its cloud-based platform Quadient Impress, a multichannel document automation platform for small and medium businesses.

YayPay, founded in 2015, provides a combination of automated invoice delivery paired with collections management, credit assessment, payment and cash application solutions, delivering a comprehensive cloud-based platform to more than 3,000 users globally.

YayPay’s solution also combines realtime reporting with artificial intelligence to provide companies insight into future payer behaviour and how it impacts their cash flow, helping them reduce write-offs and Days Sales Outstanding (DSOs). YayPay is based in New York and has a team of nearly 60 people.

“The YayPay team has built the most innovative SaaS solution, relying on powerful artificial intelligence and data analytics technologies” added Alyna Wnukowsky, chief solution officer, Business Process Automation solutions, Quadient.

“This acquisition is an investment in both technology and people – we are excited to welcome a team to Quadient that brings with them significant expertise in the Accounts Receivable Automation market and a best-in-class SaaS platform.”

Market forces in 2020 have accelerated the rate at which companies of all sizes are looking for ways to streamline business processes so they can focus on high value tasks associated to their growth.

According to global market intelligence firm IDC, the SaaS Financial Applications market, including accounts payable and accounts receivable software, is experiencing year-on-year double-digit growth and was valued at USD 11 billion in 2018.

A recent survey of Quadient customers found that 50% of documents being processed through mailing equipment are invoices or invoice-related, providing a natural connection point with AR teams.

The Quadient customer base has also confirmed strong demand for new Business Process Automation solutions. With many companies bogged down with manual legacy administrative processes, YayPay’s aim is to simplify the order-to-cash process not only to free up valuable staff resources but also to improve cashflows, eliminate errors and strengthen overall employee and customer engagement.

Finally, approximately one third of existing YayPay customers are also Quadient mail equipment customers, highlighting the strong synergy between the two customer bases.

At the closing of the transaction, Quadient owns a c.87% majority stake in the parent company of YayPay, with the two founders becoming minority shareholders. Quadient has a mechanism to increase its ownership up to 100% in the coming years.

The purchase price, excluding transaction-related costs, amounts to more than €17 million. The acquisition will be financed entirely in cash, without recourse to additional debt.