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Basware to focus its strategy for strong international growth


January 25, 2011 - London

Basware Corporation stock exchange release, January 25, 2011 at 09:00

Basware's Board of Directors and company management have adjusted the company's strategy and goals for the next 4-year period. The company will focus strongly on international growth and therefore Basware is considering to raise additional equity financing from the market. 

Basware Automation Services, launched in 2009, grew 56.0 percent in 2010, and have shown their unique competitiveness internationally. In order to utilize the achieved competitive edge, the company will increase its efforts to support the growth of Automation Services.

The company aims to be the leading e-invoice company worldwide. Acquisitions will support the growth of the e-invoicing service. Its annual volume in 2010 amounted to 13.6 million transactions. The e-invoicing market is growing strongly, and Basware aims to reach the 100 million invoice mark by 2014.

In order to support international growth, Basware is developing its organizational structure into stronger geographical regions. The country specific organizations will be combined into regional structure. The regional structure gives a boost to and enables additional investments in sales, marketing, supplier activation services of Automation Services, and other customer functionalities. At the same time, Basware is surveying opportunities for rearranging its product and business portfolio in order to enhance the international product and service business.

According to Basware's view, the significance of the service concept will continue its solid growth in the future as well, which is the reason for marketing the company's next-generation product concept strongly also as services. The company's aim is to transfer the installations of existing customers through product updates to Software as a Service (SaaS) model to a considerable extent in the future. Service offering development will continue vigorously. Basware will launch new Invoice Automation process outsourcing offering for the global market during first half of 2011. Offering new and more extensive service models to the customer will improve the company's profitability and increase its continuous net sales.

Basware has adjusted its pricing model to be very flexible according to customer needs. From now on, software solutions will be available to customers with one-time license fee, monthly subscription, and according to the SaaS model.

In order to consolidate international growth further, Basware is increasing the focus on acquisitions in its strategy and organization. The company has been active in mergers and acquisitions and is now further strengthening the activity by establishing a new executive team-level M&A function with the aim of actively engaging in potential mergers and acquisitions in support of the company's strategy. In order to increase financial flexibility and preparedness to carry out potential acquisitions Basware is considering to raise additional equity financing from the market during the first quarter of 2011. Such additional financing is planned to be raised by means of a directed share issue to institutional investors.  Nordea has been appointed as financial adviser to Basware in relation to the potential share issue.

The role of offshoring operations will continue to grow in the company's strategy. R&D and Automation Services operations at Basware's Indian office have already succeeded in gaining a significant role. The company is surveying the development of offshoring in order to improve profitability also with regard to new service business operations and internal support functions. The company is also investigating the possibility of new geographical regions in expanding offshoring.

Basware's long-term objectives were specified further. The new strategic guidelines facilitate strong international growth and positive development of operating profit margin. The long term target is to grow annually 15-30 percent in net sales and more than 50 percent in Automation Services. The company's long-term target for operating profit margin is 15-20 percent improving towards the end of the period.

For more information, please contact
CEO Ilkka Sihvo, Basware Corporation,
Tel. +358 9 8791 7251 or +358 40 501 8251

 

BASWARE CORPORATION
Ilkka Sihvo

DISTRIBUTION
Helsinki Stock Exchange
Principal media
www.basware.com

 

This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients.

The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of the
information contained therein.

Source: Basware via Thomson Reuters ONE

GlobeNewswire

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