A new acquisition allows Unifiedpost to expand its services in German-speaking countries and Hungary. The transaction was welcomed by the stock exchange.
With the announcement of the acquisition of the German company Crossinx, the Belgian company, which specializes in providing an integrated digital solution for the administrative and financial services of companies, has gained new growth prospects. It is now aiming for at least 30% revenue growth from 2023, after at least 25% in 2022.
“This acquisition looks promising because of the geographic expansion and the expansion of services,” said Michael Roeg ICHAEL ROEG
Read more on the subject and find the latest business headlines with the Born2Invest mobile app.
Crossinx is growing its sales organically at a rate of 50% per year
The market for digital solutions to process invoices and other administrative documents for companies is still underdeveloped, even though the authorities are increasingly urging companies to move in this direction. “The acquisition of Crossinx will allow Unifiedpost to grow significantly,” said Hans Leybaert, CEO of the Walloon fintech.
However, the Belgian company has to put a price tag on the German nugget. The deal values Crossinx at 9.8 times this year’s expected consolidated revenues. That ratio “is significant, and much higher than Unifiedpost itself,” noted Degroof Petercam analyst Michael Roeg. “This is due to the much higher organic sales growth of Crossinx. It will only take one year of 50% organic sales growth to bring this ratio down from 9.8 in 2021 to 6.5 in 2022. In addition, Crossinx’s gross margins have reached about twice the level of Unifiedpost’s in 2020. This also explains the high ‘enterprise value to sales’ ratio compared to Unifiedpost’s.”
One million companies
The Degroof Petercam analyst has placed his recommendation (“buy”) and price target (EUR 27) for Unifiedpost shares under review. In the meantime, he believes that “the acquisition looks promising because of the geographic and service expansion.”
By purchasing Crossinx, Unifiedpost is effectively expanding into several key European markets, namely Germany, Switzerland, Austria and Hungary. The German company has the advantage of holding an extensive network of local companies there. “With the addition of 350,000 SMEs (small and medium-sized enterprises, editor’s note) from Crossinx, Unifiedpost’s network will include nearly one million small, medium and large enterprises,” the Belgian fintech said in a statement released Monday. “Unifiedpost’s capabilities in the SME segment will be complemented by Crossinx’s expertise with large companies.”
Unifiedpost has huge potential
With this expanded network of companies, Unifiedpost has a “large potential in the mid-market,” according to Kepler Cheuvreux, whose recommendation is to “hold” the stock, with a price target of $26 (€22).
For its part, Berenberg, which advises to “buy” the fintech company’s stock and gives it a target price of $39 (€33), believes that “the transaction can create value for Unifiedpost’s shareholders.” The bank points to five reasons for this: access to a fast-growing market in German-speaking countries, the expansion of services to medium-sized companies, the synergies that will be created by integrating Crossinx customers, the prospect of improved automated document processing capabilities, and the increased visibility and reputation of Unifiedpost in Europe.
Investors seem to agree. The Unifiedpost share rose strongly on Monday, April 12th, on the Brussels stock exchange.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in L’Echo, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
Although we made reasonable efforts to provide accurate translations, some parts may be incorrect. Born2Invest assumes no responsibility for errors, omissions or ambiguities in the translations provided on this website. Any person or entity relying on translated content does so at their own risk. Born2Invest is not responsible for losses caused by such reliance on the accuracy or reliability of translated information. If you wish to report an error or inaccuracy in the translation, we encourage you to contact us.
French National Bank to Test a CBDC Digital Currency
The largest CBDC trial to date was just launched by the French central bank. France is the largest eurozone country...
Heuristik Opens its Capital to Make the Leap to Europe and the U.S.
Heuristik has already committed the support of two business angels of Spanish origin, whose names have not been disclosed. In...
Omers Acquires 49% of the Australian Subsidiary of Fotowatio
OMERS Infrastructure's global renewable energy holdings include Leeward Renewable Energy, a growth-oriented renewable energy company that owns and operates a...
Has Your Company Had an IPO Recently? Here’s How to Decide Whether to Hold or Sell Your Stock
In 2021, many companies with IPOs saw huge increases in their stock prices in a short time, adding millions in...
The Exodus of Chinese Miners Leads to New Electricity Tariffs in Russia
Many conditions make Russia ideal and attractive for mining cryptocurrencies. It is one of the countries with the highest electricity...
Biotech2 weeks ago
Canada’s Hidden Health Crisis: Is This Company the Only One Paying Attention?
Cannabis2 weeks ago
The First Bottles of Medical Cannabis Oil Delivered to Patients in Jujuy, Argentina
Cannabis1 week ago
Malta Might Soon Legalize Private Cannabis Consumption
Featured2 weeks ago
Carbon Emissions: the Levy Under the Paris Agreements