Updated: Basware-Tradeshift Talks for M&A Fall Through

Global Risk Management Solutions (GRMS)

Procure-to-pay provider Basware on Thursday announced that Tradeshift’s talks to buy it have been called off.

“Tradeshift has recently informed Basware that it will be unable to proceed given conditions in the capital markets,” Basware said in a press release. “On this basis, the Board of Directors of Basware has terminated its discussions with Tradeshift.”

In November, Finland-based Basware confirmed that it was in talks to be acquired, but it didn’t disclose the other company. Later, reports indicated that Tradeshift, a U.S.-based provider of solutions for supply chain payments and marketplaces, was seeking to buy Basware.

Spend Matters founder and analyst Jason Busch expects more M&A activity even though this deal didn't go through.

"Tradeshift's acquisition run at Basware interjected some excitement into the procure-to-pay technology sector," Busch said Thursday. "It was representative of increasing M&A interest in the procurement solutions market, as well as its adjacencies such as accounts payable automation and trade financing.

"Even as Tradeshift and Basware go their separate ways (for now), we expect to see increased M&A activity throughout 2019 as similar size or even larger transactions take shape. In the meantime, both Tradeshift and Basware have the potential to go from strength to strength as they continue to position their individual capabilities and value proposition to procurement and finance organizations worldwide — not to mention suppliers."

Basware said it is confident in its future.

“Basware has a strong independent organic strategy and is well positioned to further expand its leadership position in this market,” said Basware Chairman Ilkka Sihvo.

The investor Arrowgrass acknowledge in a press release that the talks had stopped, and it gave details of its part in the negotiations.

Arrowgrass said the "irrevocable undertaking that it signed with Tradeshift to accept an offer for the approximately 25% of Basware shares that it owns, were the offer to be made by 28th February 2019 at a price of at least €46.5 per Basware share, terminates today."

And the investor said a Basware deal is still needed.

"Arrowgrass believes that the value of Basware will be maximized for all Basware shareholders through a combination of Basware with a strategic purchaser or the acquisition of the company by private equity," the press release says. "Arrowgrass will work constructively with the Board of Basware and its advisers to ensure that all strategic alternatives are actively pursued."

This a developing story. Check back for updates.

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Voices (2)

  1. James Montgomerie:

    Tradeshift couldn’t raise the dosh maybe? Or found something in the Basware numbers? Or was it a disruptive manoeuvre from the beginning ? Also what is happening with Proactis share price collapse. Thought SpendMatters would be onto that.

    1. JP Morris:

      Hi, Spend Matters UK has this update on Proactis — and Basware — stock prices falling. We’ll have the news in Afternoon Coffee later today. http://spendmatters.com/uk/in-case-you-missed-it-basware-tradeshift-proactis-tungsten-accenture-wax-digital-roundup/

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