By
Godfrey Benjamin
February 13th, 2024
Taulia will arguably help drive the primary goal of SAP to serve businesses around the world.
German enterprise software giant, SAP SE (NYSE: SAP) has announced its plans to acquire a majority stake in Taulia, a San Francisco-based fintech provider of working capital management solutions. While the announcement did not reveal the value of the investment, the deal is notably aimed at giving companies better access to liquidity and improving their cash flows.
Taulia serves companies in the supply chain finance management arena or any firm that requires working capital at large. The niche has seen a massive increase in demand following the disruption of supply chain business processes by the coronavirus pandemic. Taulia has been a major beneficiary of these demands as it is one of the most dominant startups providing the needed technology in this area.
Following the acquisition, Taulia will notably operate as an independent company with its own brand in the SAP Group. Through the acquisition, SAP will also extend its business network and strengthen the company’s solutions for the CFO office.
“Taulia strengthens our portfolio and adds value to a point that is key to every company: financial flexibility and stability. With that, they contribute to making supply chains more resilient,” SAP CFO Luka Mucic said. “By combining the deep working capital management expertise of Taulia with SAP’s broad CFO solution portfolio and the integration into our core business software and Business Network solutions, we are well positioned to become a leader in working capital management. We will offer these capabilities at scale to help businesses improve their financial position and seize growth opportunities.”
Prior to this time, both SAP and Taulia have been strategic partners as the majority of Taulia’s clients utilized SAP’s ERP system. Both companies notably have some mutual clients including Airbus SE (EPA: AIR), Nissan Motor Co Ltd (TYO: 7201), and AstraZeneca Plc (LON: AZN).
Taulia to Help SAP Serve More Businesses Globally
As a solutions design company through the powers of the software, Taulia will arguably help drive the primary goal of SAP to serve businesses around the world.
“I am delighted by our combination with SAP and its ecosystem to serve more businesses and contribute to SAP’s vision,” Cédric Bru, Taulia CEO said. “Cash is the oxygen businesses need to breathe during challenging economic cycles and growth sprints. Coming together with SAP will help accelerate Taulia’s mission of helping businesses thrive by unlocking liquidity trapped in supply chains.”
The acquisition is structured exactly in such a way that this will be achieved. Cédric will continually be the firm’s Chief Executive Officer while SAP’s Mucic will join the Taulia board as the new Chairman.
According to SAP, Taulia will maintain its existing business partners, especially JPMorgan Chase & Co (NYSE: JPM) where it receives its liquidity from. The firm’s products will also be available to more businesses beyond the SAP network that may choose to use Taulia’s capital management solutions.