GTR can reveal that the recently announced Tungsten Corporation/DocuSphere acquisition cost US$6.5mn.
The global electronic trading network completed the acquisition of DocuSphere, an accounts payable automation solutions provider, in September 2014 but more details have been revealed in a GTR exclusive interview with Tungsten Network’s Americas CEO, Rick Hurwitz.
Hurwitz disclosed to GTR that the acquisition totalled US$6.5mn and that it significantly extends Tungsten’s invoice-automation technologies to help companies streamline their accounts payable functions. He says that it will also assist firms to adhere to tax and regulatory compliance and have greater transparency of the entire invoice-to-pay process.
GTR was informed that the acquisition took “numerous months to complete” as there was a substantial due diligence process between the two companies.
“The market was pleased to see that Tungsten is expanding its portfolio of invoicing, payment, finance and analytics solutions,” adds Hurwitz. “By joining forces with DocuSphere we have introduced complementary skills and technology that will strengthen the Tungsten offering and continue to help our clients automate their accounts payable systems.”
Commenting on how Tungsten’s growth will be determined by the speed of e-invoicing implementation, Edmund Truell, Tungsten group’s CEO, says: “Our recent acquisition of DocuSphere, a provider of AP automation solutions, enhances our control of implementation by reducing our reliance on third parties. It also introduces new revenue opportunities and helps customers achieve straight-through processing.”
Since being admitted to trading on the London Stock Exchange’s AIM on October 16, 2013, Tungsten has attracted £160mn of gross new money and a market capitalisation of £225mn, which sits close to £400mn today.
The funding for the Tungsten acquisition came from recently raised AIM funds, Truell said in the company’s latest AGM: “We recently raised another £12mn… with part of the proceeds being used to finance the acquisition of DocuSphere, a complementary business that that will enable us to generate revenues from large contract wins faster.”
Hurwitz disclosed to GTR: “There are roughly 80 to 100 customers using DocuSphere’s own software technologies. Not all of these are what Tungsten would call ‘buyer customers’ relative to accounts payable (AP) processing, as some are using the software in other ways outside of AP.”
Tungsten’s focus in the coming year is to continue to invest heavily in people, infrastructure and working capital.
The Tungsten group has already launched a large-scale recruitment and retention programme and the company plans to hire 100 people this year.
It is also seeking on becoming compliant in new countries, including India, China, Qatar, Chile and Japan.