Bottomline Opens New Market Scenario

My note refers to the recent news that Bottomline Technologies has bought Sterci and Simplex

http://www.bottomline.co.uk/news/press_releases/bottomline-technologies-acquires-sterci-simplex.html

This is my view:

• The announcement signs that in the messaging hubs space more niche and specialized vendors will be swallowed by large goliaths like Bottomline.
• To survive, the large players need to expand from the “comfort zone” of handling payments transactions into the more complex—and yet profitable—domain of transactions services, B2B payments, and corporate-to-multi-bank connectivity.
• The market will consolidate to few large players and Bottomline will now be one of the major contenders.
• As a consequence SWIFT will be further sidelined to inter-bank exchanges only and all its efforts to reach out to corporate banking clients will likely be frustrated.
• Bottomline adds the capability to reach out to both corporate and banks, which further increases its competitive advantage.
• Bottomline can also claim good experience in supply chain finance. This additional capability positions Bottomline as a serious partner for treasury management system (TMS) vendors that want to help their clients extend the reach beyond the four walls of the corporation.
• Therefore Bottomline is a serious contender in the TMS arena for a possible acquisition of a local treasury system vendor.