Publicly held French company Quadient on Wednesday announced the acquisition of YayPay, a software-as-a-service, accounts receivable (AR) automation solutions provider that was named a Tech Company to Watch by CFO in 2019.
Quadient said the acquisition of New York-based YayPay will expand its business process automation products, notably 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. Its cloud-based platform serves more than than 3,000 users globally.
Quadient focuses on four key solution areas: Customer Experience Management, Business Process Automation, Mail-Related Solutions, and Parcel Locker Solution. 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 company said.
At the closing of the transaction, Quadient will own an 87% majority stake in the parent company of YayPay, with the two founders of YayPay becoming minority shareholders. Quadient has a mechanism to increase its ownership up to 100% in the coming years, the company said.
The purchase price, excluding transaction-related costs, amounts to more than $20 million. The acquisition will be financed entirely in cash, without recourse to additional debt.
Said Geoffrey Godet, chief executive officer of Quadient: “YayPay represents a crucial strategic piece of our overall portfolio and we are excited to offer this industry-leading financial technology to our customers to help them transform their accounts receivable processes. We welcome YayPay’s customers and look forward to helping the YayPay team accelerate their growth path by introducing the YayPay platform to Quadient’s extensive customer base, numbering over half a million.”
YayPay’s solution combines real-time reporting with artificial intelligence to provide companies insight into future payer behavior and how it impacts their cash flow, helping them reduce write-offs and days sales outstanding (DSOs). The YayPay software-as-a-service collections offering is designed for companies handling up to 500,000 invoices per month.
YayPay is integrated with a variety of ERP, billing, and customer relationship management platforms, including NetSuite, Sage, Quickbooks, and Salesforce.com.
As described in 2019 by CFO, after selling London-based Meridian Equity Partners in 2014 and taking a year off, co-founder Anthony Venus — with the help of YayPay co-founder and chief technology officer Eugene Vyborov — started working on a solution to a common accounts receivable problem: getting paid on time. The two took the scaffolding of their idea to TechCrunch’s Startup Battlefield contest and made it into the finals.
“We are thrilled to be joining the Quadient team and are looking forward to expanding YayPay’s solution even further with Quadient’s global footprint. Quadient is a strong strategic and cultural fit, aligned with our strategic vision to bring smart accounts receivable management to every business,” said Venus.
Quadient’s securities trade on Euronext Paris. The company has a market cap of more than $500 million.