Medius buying Wax Digital: Customer recommendations after the deal [PRO]

M&A can sometimes be a threat to customer value. Even in the best situations, acquisitions can introduce uncertainty for customers in terms of pricing, support and related areas. And in the worst, M&A can put actual and implied contractual terms and supplier obligations (if not expectations) at risk come renewal time — and even threaten the underlying reasons for why a technology was selected in the first place. For customers, skepticism in vendor M&A is always better than the alternative. But we look at the combination of Medius and Wax Digital from a slightly different lens, as the combination under the backing of a growth-oriented private equity owner joins together two organizations that could, for a variety of reasons, bring benefits to customers with less potential for downside risk than many M&A transactions.

Regardless, the informed customer — the one that has every intent on getting the most out of their technology supplier after it is acquired or merged with another entity — will always invest the time to understand a combination from an objective lens, how it may benefit them above and beyond the current commercial relationship that is in place and their true BATNA (best alternative to negotiated agreement) for all current and potential engagement elements. Such insight, even if a transaction like Medius-Wax appears to benefit them on the surface, will always pay dividends, and will put procurement and finance buyers in the driver’s seat to make the best decisions for them.

This Spend Matters PRO analysis provides recommendations for customers of Wax Digital and Medius. If you are new to our coverage of the transaction, we recommend starting first with our free site coverage: here and here. Spend Matters Nexus subscribers (those within the M&A ecosystem including sponsors, CEOs, boards and corporate development leaders) can also read our deeper analysis of the combination here:

* Part 1: Company Backgrounds, Product Strengths/Weaknesses, Deal Rationale
* Part 2: Wax strengths, customers, integration considerations
* Part 3: Strategy and competitive landscape analysis for AP automation and invoice-to-pay.
* Part 4: Strategy and competitive landscape analysis for procurement and ERP vendors

We encourage all subscribers to reach out to us to understand how this and other transactions may impact where they sit in the market.

Disclosure: Azul Partners served as an adviser to Marlin Equity in the Wax-Medius transaction.

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