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Unified Post acquires Crossinx

Source: Unified Post

Unifiedpost Group (Euronext: UPG) (Unifiedpost), a leading European fintech company, is proud to announce the acquisition of Crossinx GmbH.

The acquisition is a major step in the realisation of the group’s strategy. The solutions of both companies and their markets are highly complementary. By joining forces, the combined group can now offer full order-to-cash and procure-to-pay solutions to small businesses, medium-sized corporates and large enterprises. Unifiedpost now also gets access to the important German market, and even the full DACH region and Hungary. By bringing the businesses and solutions together, multiple avenues of additional value creation are unlocked. Unifiedpost therefore also raises the financial guidance it has given to the market.

Crossinx acquisition as a cornerstone of Unifiedpost’s strategy
To accelerate the realisation of its strategy, Unifiedpost combines double-digit organic growth with targeted acquisitions. Today it is proud to announce the acquisition of Crossinx, a very strategic acquisition for the realisation of Unifiedpost’s strategy to become the leading trusted communications and payments business network in Europe. The value that Crossinx brings to the company will be key in the expansion of Unifiedpost.

Hans Leybaert, CEO and founder of Unifiedpost:
“The acquisition of Crossinx means a significant expansion of Unifiedpost. Not only do we strongly enlarge our geographical footprint in the DACH region, which is crucial for our pan-European roll out in 26 countries this year. Moreover, important and new synergies are created by this combination of businesses. This will result in an enriched value proposition across e-procurement, e-invoicing and payments, covering the full order-to-cash and procure-to-pay cycles, to all customer types in Europe.

I look forward to the close collaboration with the management of Crossinx, as they will become a valuable part of the Unifiedpost team. Marcus Laube, CEO and founder of Crossinx, is a well-known pioneer of e-Invoicing and Co-Chair of EESPA (European e-Invoicing Service Provider Association) and will also join Unifiedpost`s Executive Board."

Jointly creating the largest European Fintech network
Adding 350.000 Crossinx SMEs, the Unifiedpost network will include almost 1 million businesses, including small businesses, mid-size businesses and large corporates. Unifiedpost`s strength in the SME segment will be complemented with Crossinx` expertise with corporate customers. Combining the solutions, for the first time, comprehensive and ‘out-of-the-box’ products will be available for all customer segments. This will also lead to an increasing interest of partners like financial institutions and ERP providers to resell and integrate those products with their offering.

Marcus Laube, CEO and founder of Crossinx:
“The combined networks of Unifiedpost and Crossinx will create a game changer in the market. The joint cloud network will also include Artificial Intelligence and Blockchain and will enable corporates to communicate between each other and use a variety of services - based on a single connection.”

Complementary technologies and offerings lead to compelling strategic rationale
The combination of Crossinx and Unifiedpost’s solutions will create an extensive offering for the crucial business processes of procure-to-pay and order-to-cash. The joint value proposition will lead to a more robust integrated offering, in comparison to other market players.

Crossinx customer base will be leveraged especially by Unifiedpost`s payment and Supply Chain Finance solutions. Whereas Unifiedpost customers benefit from process automation in the areas such as invoice approval, order reconciliation and worldwide tax compliance.

Creation of a fintech group with full European coverage

The up- and cross-selling opportunities for Unifiedpost in Germany, Switzerland, Austria and Hungary are significant given the aforementioned access to a dense network of local enterprises. As this acquisition launches Unifiedpost in these markets, it is a significant strategic expansion and a milestone in the pan-European roll out of the platform. In turn Crossinx can put a boost on the geographic growth and expansion of its products by leveraging on Unifiedpost’s presence across the rest of Europe. This will improve the Crossinx value proposition to corporates, being its main targeted customer group.

Financial guidance
Regarding our financial objectives, Unifiedpost hereby confirms the guidance it has given which stated that it will have an annual organic growth based on the pro forma digital processing recurring services revenue of at least 25% by 2022 and a normalised EBITDA of also at least 25% by 2023, with a gross margin of at least 60% in the same year. Furthermore, Unifiedpost aims to reinforce the digital processing services revenue with the post and parcel optimisation services revenue, which was obtained in the latest acquisition of 21 Grams at the end of 2020.
With the acquisition of Crossinx, Unifiedpost can additionally give the guidance that as from 2023 the annual organic growth based on the pro forma digital processing recurring services revenue (which will include the full consolidated revenue of Crossinx) will be at least 30% by 2023.

Transaction details
In this transaction, Crossinx is valued at 9.8 times the projected 2021 consolidated revenue, representing an upfront Enterprise Value of €100 million, increased with a conditional earn-out payment of €13 million.

The initial upfront Enterprise Value of of €100 million, adjusted for the net financial position and other items, was settled with 50% cash and 50% newly issued Unifiedpost shares valued at €20 per share. In addition, the parties have agreed on 3 earn-out payments depending on Crossinx consolidated organic results for the fiscal years 2021, 2022 and 2023 respectively. Assuming the maximum earn-out payments, Crossinx is valued at €160 million, of which €90 million payable in Unifiedpost shares.

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