Sidetrade (Euronext Growth: ALBFR.PA), – publisher of an AI powered platform, dedicated to the management of the Order-to-Cash (O2C) cycle – has announced today conclusion of a firm acquisition agreement covering 100% of the capital and the voting rights of Amalto, one of the main players in the dematerialization of inter-company financial transactions in North America, for an amount of $16m. With this deal, Sidetrade enriches its O2C offering, and accelerates its penetration of the North American market.
Sidetrade’s offer is at $16m in cash for 100% of Amalto’s equity. In addition, the directors could receive an earn-out at the end of 2024 depending on the growth of Amalto’s revenues at that date. Two month after the launch of its Fusion 100 plan aiming for revenue of $100m by 2025, acquiring Amalto allows Sidetrade to reach an important milestone in the execution of its plan with a cumulative revenue that could approach $43m in 2021, including $7m in North America.
Sidetrade plans to finance the operation through bank debt in order to preserve cash for other possible acquisitions. The current cash position is €24m ($ including treasury stock.
Amalto has offices in Houston (USA), Calgary (Canada) and Paris (France), and is the North American integration specialist for the exchange and automation of O2C documents in the Oil and Gas industry. The business helps companies in a variety of industries where companies face a very high Day Sales Outstanding (DSO); and Environmental, where vertical markets present different business processes. Amalto does 90 percent of its business sales in North America and employs 21 people, including 15 in North America.
Each year, millions of transactions, representing billions of dollars, are made via Amalto cloud technology. Amalto’s customers include multinational giants such as Chevron, General Electric, and Schlumberger. The company has been able to build sustainable partnerships with its customers who renew their trust over the long term with an attrition rate below 2.5%. It has been rated by global IT advisory firm Gartner as one of three ‘Cool Vendors of Platform and Integration Middleware’.
In 2020 Amalto had revenues of $4.3m and recorded high growth and profitability with EBITDA above 20%. As of 31st December 2020, Amalto had a net cash position of over $1.2m.
Olivier Novasque, Founder, Chairman and CEO of Sidetrade comments:
“The Amalto deal is a powerful gas pedal for Sidetrade’s international business growth. Amalto’s innovative solutions will enrich our B2B AI platform, and the intention is this will be rapidly available to all Sidetrade customers. Sidetrade’s Cloud has recorded more than $2.4 trillion in business-to-business transactions over the past three years. Combining the technologies and talents of Sidetrade and Amalto will support our mission to be positioned as a true world-class leader in the O2C market.”
“We have been incredibly impressed by Amalto’s expertise in the dematerialization of financial flows. Their solution has a considerable technological lead, with a unique capacity to automatically integrate invoices in the main accounting systems and purchasing portals. Amalto is a champion of electronic B2B documentexchange, with a unique position, focused on management of the entire O2C cycle. Amalto’s experienced teams in Houston and Calgary, and their loyal US and Canadian customer base, made up of large industrial and business service groups, will give Sidetrade great leverage in the North American market.”