For those of us who follow the e-invoicing market (and frankly if you don’t, you should) the recent announcement of a contingent deal between Tungsten and OB10 brings to a possible end the pioneering history of OB10.
OB10 was a real innovator in the e-invoicing market especially in Europe. They seemed poised to make it big. I always admired how they made the world “safe” for e-invoicing from a VAT perspective. Somehow, however, they never really seemed to reach escape velocity. I’m not sure why.
The announced deal sounded really “hairy”–involving a bank, analytics, and floating stock in Europe–so the story is far from over. The price £99 in cash and stock was well reported, but the lazy folks who call themselves analysts failed to spend the £1 necessary to see OB10’s financials which indicated the following:
- £16.3 million in revenue in the year ended April 30, 2012
- A net loss of £2.6 million in the same period
- A cumulative net loss since inception of nearly £50 million
- 5% year over year growth in revenue and e-invoice volume
If the deal goes through, it will be a nice multiple on revenue and EBITDA, but a disappointing return for investors who put in a lot of capital.
Now a “hot” company named Tradeshift is trying to conquer the e-invoice market in Europe (and elsewhere) with a different technology, different business model, and during a different era. So far Tradeshift has shown the ability to generate buzz, attract capital, and hire some good talent. How many e-invoices they are processing is less clear–a bad sign. Its going to be really fun to see if the results are any different this time around.
Bob, I ran across this post and felt compelled to comment. Rather than the ‘end’, this milestone represents an exciting new chapter for OB10. It gives us new capabilities and capital to expand the market and realize our vision. As you say, OB10 has been a real innovator in the e-Invoicing market and joining Tungsten helps us continue to expand our network and the innovation that has characterized our leadership position to date. The reaction to the news has been overwhelmingly positive: It is good for the buyers and suppliers on our network, our employees and partners, and the industry at large.
That seems like a fair comment, perhaps it is a new beginning rather than an end. I guess I’ve seen so many acquisitions of e-invoice networks end up being ends, rather than beginnings, I jumped to a conclusion. Thanks for your comment.