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Esker Set to Acquire e-integration GmbH, a Leading German EDI Service ProviderEsker, a worldwide leader in document process automation solutions and pioneer in cloud computing, today announced that it has reached an agreement to acquire the Düsseldorf, Germany-based electronic data interchange (EDI) provider e-integration GmbH. The acquisition of e-integration, combined with Esker's (News - Alert) existing subsidiary in Munich, Germany, will allow Esker to increase its revenue in the German market by more than 150 percent. Esker will also benefit from better coverage in the German business landscape and from the combined sales and technical workforce of more than 30 employees. Different Technologies, Complementary Solutions For more than 25 years, e-integration has provided B2B communication services based on the standards and technologies of EDI. The online platform currently connects more than 7,000 companies worldwide. E-integration has more than 600 active customers, comprised of mid-sized to large German international manufacturing companies, wholesalers and trade associations. As a leading EDI services provider, e-integration offers a suite of EDI services that cover a wide range of solutions for the auomation of order management, e-invoicing, logistics, procurement and other business-critical processes. Esker and e-integration share the same essential goals: streamlining back-office and inter-company processes while reducing the use of paper. E-integration is Esker's second acquisition of an EDI company in Europe, following its deal with Paris-based CalvaEDI in 2015. "Esker is convinced that the integration of EDI capabilities with all other document-centric traditional and electronic channels of B2B communication, including mail, email, web portals and fax, will become a strategic competitive advantage in the years to come," said Jean-Michel Bérard, chief executive officer at Esker. A Profitable Acquisition Similar to Esker's cloud-based business model, e-integration earns the majority of its revenue from fees based on the frequency of usage of its online platform. This gives e-integration a recurring and resilient revenue stream, ensuring continuous growth independent of economic conditions. For the 2016 financial year, the revenue generated by e-integration's EDI business (as acquired by Esker1) is forecasted to reach 3.2 million euros, an increase of more than 10 percent over 2015, with pro-forma pretax profit estimated to reach 17 percent of sales. In addition to its EDI business, since 2012 e-integration has been developing PROmitea, a new cloud solution that helps companies automate procurement, sourcing and purchasing processes through an online portal. As part of Esker's acquisition, the PROmitea business will be spun off and continue to be managed by its current owner. Esker, however, will continue to cooperate with the newly formed PROmitea and receive a 20 percent share in the entity as part of the global transaction. Esker will also have the option to buy the remainder of the new company's shares at a later time. This transaction is subject to usual audit procedures and is expected to be finalized by January 2017. About e-integration GmbH E-integration GmbH has over 25 years of experience in the area of EDI. With more than 7,000 affiliated participants in 24 EU countries, the U.S. and Canada, e-integration is a leading EDI service provider. E-integration's vast experience in EDI, and in all essential cross-company processes (purchasing, order processing, transportation logistics), forms the basis for its robust service and solution portfolio. E-integration's e-center is an essential part of the extensive B2B communication services. Its data conversion solution is supplemented by versatile applications and services, which are largely developed in-house for optimal integration into the high-performance system. About Esker Esker is a worldwide leader in cloud-based document process automation software. Esker solutions help organizations of all sizes to improve efficiencies, accuracy, visibility and costs associated with business processes. Esker provides on-demand and on-premises software to automate accounts payable, order processing, accounts receivable, purchasing and more. Founded in 1985, Esker operates in North America, Latin America, Europe and Asia Pacific with global headquarters in Lyon, France and U.S. headquarters in Madison, Wisconsin. Last year Esker generated 58.5 million euros in total sales revenue. For more information on Esker and its solutions, visit www.esker.com. Follow Esker on Twitter (News - Alert) @EskerInc and join the conversation on the Esker blog at blog.esker.com. 1 Excluding PROmitea View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006640/en/ |
