Why would Medius buy Wax Digital? (Part 3: Strategy and competitive landscape analysis for AP automation and invoice-to-pay)

This Spend Matters Nexus research brief explores the potential competitive impact of the Medius and Wax Digital combination on the AP automation and invoice-to-pay markets. It also explores the strategies that some providers within these groups are already pursuing (or may pursue) in response to customer requirements, competitive pressures and the desire to expand the overall total addressable market, or TAM, for the AP automation sector and related opportunities.

AP automation and invoice-to-pay vendors compete in a market that is growing and changing by the day. This market counts AP specialists such as Accrualify, AvidXChange, Beanworks, SAP Concur, Symbeo, MineralTree, Medius, Yooz and dozens of others, as well as broader procure-to-pay providers such as Basware, Corcentric, Coupa, Oracle, SAP Ariba and Tradeshift. I previously described this market as “hot, hot, hot.” And I stand by that hyperbole.

Some of these providers have chosen to focus on the core of AP workflow and invoice processing; others have coupled AP automation with adjacent areas (e.g., payments and/or financing); and still others are more dramatically attempting to expand the value proposition that links AP to broader finance (and even procurement) functions through expanded modules and capability, including to procurement.

If you are just coming up to speed on the Wax Digital-Medius combination, start here with this Nexus series — (Part 1: Company backgrounds, product strengths/weaknesses, deal rationale) and (Part 2: Wax strengths, customers, integration considerations). Free Spend Matters’ news coverage of the deal can be found here and here.

Jason Busch serves as Managing Director of Spend Matters Nexus, a research and advisory group that works with sponsors, CEOs and boards on due diligence, M&A strategy and product strategy. Spend Matters and Spend Matters Nexus are owned by Azul Partners. Disclosure: Azul Partners served as an adviser to Marlin Equity in the Wax-Medius transaction.