BOSTON - Flywire Corporation (NASDAQ:FLYW), a global payments enablement and software company, has announced the acquisition of Invoiced, a company specializing in automating Accounts Receivable (A/R) processes for B2B finance teams. This strategic move aims to enhance Flywire's B2B payments solution by integrating Invoiced's workflow automation software, which is tailored for mid-market companies.
The acquisition, announced today, is set to expand Flywire's customer base across various industries and geographies, furthering its commitment to the B2B segment. Invoiced's platform is designed to manage invoices, communicate with payers, and reconcile payments with Enterprise Resource Planning (ERP) systems, featuring integrations with leading accounting systems such as Oracle (NYSE:ORCL)'s NetSuite, Sage Intacct, and Microsoft (NASDAQ:MSFT) Business Dynamics.
Flywire's CEO, Mike Massaro, stated that the acquisition aligns with the company's core thesis that software drives value in payments and is expected to accelerate their product roadmap. Invoiced's A/R automation software combined with Flywire's global payment network, which supports payments in over 140 currencies across 240 countries, is anticipated to offer a comprehensive software and payments solution for the B2B payments industry.
The global market for Accounts Receivable Automation is projected to grow significantly, from USD 3.3 billion in 2022 to USD 6.5 billion by 2027, driven by the need for efficient financial operations and compliance with tax regulations. Flywire expects Invoiced to contribute approximately $2M of revenue with software-like gross margins in FY 2024, and plans to reinvest the majority of the margin dollars to grow the combined business.
The acquisition underscores the trend of digital transformation in financial operations, as businesses increasingly seek automated solutions to improve cash flow management and streamline cross-border transactions. Flywire, with its global presence and integration with major ERP systems, aims to optimize payment experiences for customers while addressing operational challenges.
In other recent news, Flywire has reported a robust financial performance for the first quarter of 2024, with revenue reaching $110.2 million, a 24% increase year-over-year. The company also saw a significant rise in adjusted gross profit to $71.9 million and nearly doubled its adjusted EBITDA to $13.2 million. Raymond James reiterated a Strong Buy rating on Flywire with a $30.00 price target, based on projected EBITDA multiples for the years 2025 and 2026.
The firm's analysis suggests a potential acquisition price for Flywire would likely range between $24 to $30 per share. Meanwhile, Citi has maintained a Buy rating on Flywire's stock, despite a lower revenue outlook impacted by foreign exchange factors. These recent developments reflect Flywire's strong positioning in the global payments industry, as the company processed $7 billion in payments during the quarter, indicating a 23% growth. Citi and Raymond James' analysis are rooted in detailed financial estimations and market expectations, emphasizing a conservative approach to valuation.
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