Tradeshift-Basware M&A Talks Are Off!

Leading provider of networked purchase-to-pay solutions, e-invoicing and financing services, Basware, announced today that it has terminated talks with Tradeshift over its possible takeover offer.

Finland-based Basware announced during the last couple of months of last year that it was in discussions with US-based supply chain payments firm Tradeshift about a possible cash tender offer by Tradeshift for all shares in Basware.

It emerged today in a press release that “Tradeshift has recently informed Basware that it will be unable to proceed given conditions in the capital markets.”

Arrowgrass Capital Partners LLP then released a note saying “… Arrowgrass also notes that 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.”

Basware has now entered into a ‘standstill agreement’ with Tradeshift until November 12, 2019. Said Basware Corporation’s Chairman of the Board: “The Board of Basware remains confident about the standalone prospects of its business. Basware is the global leader in networked source to pay, which is a huge and fast-growing market, worth EUR 15 billion in terms of annual potential. Basware has a strong independent organic strategy and is well positioned to further expand its leadership position in this market.”

Industry expert, Jason Busch, had this to say: “Tradeshift's acquisition run at Basware interjected some excitement into the procure-to-pay technology sector. 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 increasing 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.”

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