Flywire Corporation a global payments enablement and software company, announced that it has acquired Invoiced, a SaaS platform that enables B2B finance teams and the “Office of the CFO” to automate the critical order-to-cash process. The acquisition is expected to build on Flywire’s existing B2B payments business by enhancing the software suite it provides to its global clients and target segments. Flywire plans to expand on Invoiced’s successful track record of providing invoicing software to a diversified client base across industries and geographies, and reinforces its commitment to powering software and payments to its target B2B segment, which Flywire estimates to be responsible for approximately $10 trillion in global payment volume.
Invoiced’s SaaS platform empowers B2B finance teams to automate A/R processes by managing invoices, communicating with payers, and reconciling payments to their Enterprise Resource Planning (ERP) systems. Invoiced does this through deep integrations with leading accounting systems and ERPs, including Oracle’s NetSuite, Sage Intacct, and Microsoft Business Dynamics. With a diversified global client base, Invoiced has a successful track record of delivering mission-critical software, having recently been named the #1 2024 A/R Automation Software by G2 Crowd. The combination of Invoiced’s A/R automation software with Flywire’s proprietary global payment network – which supports diverse payment methods in more than 140 currencies across 240 countries and territories around the world – is expected to provide the B2B payments industry with a combined full-suite software and payments solution that streamlines workflows for finance departments.
“We seek M&A opportunities that will help us enhance our value proposition and strengthen our financial performance, while underscoring our core thesis that software drives value in payments,” said Mike Massaro, Flywire CEO. “We believe Invoiced is an ideal software complement to our existing B2B payments business. Invoiced will help us significantly accelerate our product roadmap, and its Accounts Receivable product focus has strong alignment with Flywire’s global payment acceptance capabilities.”
Digital transformation efforts drive demand for automated A/R processes
Businesses are increasingly investing in Accounts Receivable (A/R) solutions to improve their financial operations and cash flow management. According to industry research, the global Accounts Receivable Automation revenue market size is estimated to grow from USD 3.3 billion in 2022 to USD 6.5 billion by 2027, at a compound annual growth rate of 14.2% during the forecast period. This investment includes expenditures on software, cloud services, and integration with existing financial systems, underscoring the critical role of A/R solutions in enhancing efficiency, reducing errors, and supporting better financial decision-making. Additionally, the global push for compliance with tax regulations and the need to streamline cross-border transactions further enhance the demand for sophisticated invoicing solutions.
Complements strong organic growth
The acquisition of Invoiced is a continuation of Flywire’s long-term plan to supplement its strong organic growth and expand across business lines. Flywire expects Invoiced to add approximately $2M of revenue with software-like gross margins in FY 2024, and while Invoiced has healthy Adjusted EBITDA margins, Flywire expects to reinvest the majority of the margin dollars this year to grow the combined business. More details will be shared on the upcoming earnings call scheduled for August 6, 2024.
SOURCE: GlobeNewsWire