After being its long-term tech partner, Versapay goes all-in on DadeSystems.
Toronto-based FinTech firm Versapay has acquired DadeSystems after being long-term technology partners.
The acquisition is being funded by Great Hill Partners and Ten Coves Capital, the latter of which is a DadeSystems investor. As part of Versapay’s acquisition of DadeSystems, Ten Coves is rolling its stake into Versapay.
“Together, we can accomplish even more to close the digital transformation gap in [accounts receivable].”
– Craig O’Neill
Founded in 2006, Versapay provides accounts receivable (AR) solutions and a next-generation B2B payments network that are designed to make billing and payments easier for enterprises. Versapay was previously listed at the TSX Venture Exchange, until Great Hill Partners purchased the company in 2020 in an all-cash offer of $126 million.
With its acquisition of DadeSystems, Versapay expects the deal to expand the company’s enterprise and mid-market footprint, as well as to add key talent to its growing employee base, which is at 350 people currently according to the company’s LinkedIn profile.
Although the acquisition represents DadeSystems’ full integration into Versapay, the two companies already have a working relationship that was established prior to the deal.
Built into Versapay’s automated cloud-based accounts receivable platform, DadeSystems’ flagship cash application software automates the multiple processes involved in accounts receivable, such as streamlining the receipt and reconciliation of payments no matter how they are received.
Now as a Versapay company, all DadeSystems solutions, including mobile offerings, will be available to Versapay’s clients and partners. This full integration will enable enterprises to digitize and automate all of their customer payments, including checks, bank-to-bank transfers, credit cards, and mobile payments. The combined company claims to process more than $60 billion in payment volume annually.
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Miami-based DadeSystems was founded in 2011 to help businesses with what the company calls the most pressing accounts receivable challenge—manual cash application. Its DadePay suite of accounts receivable automation offerings is used by hundreds of companies across different industries to receive, match, and apply any payment from any channel.
DadeSystems’ customer base is mostly made up of upper mid-market businesses and enterprises, including two of the ten largest United States (US) food distributors, two of the ten largest US building materials and nine of the sixty-five largest US banks. The company is also a technology provider for Wells Fargo’s and Fifth Third’s accounts receivable automation solutions.
The DadeSystems team will continue to operate in Miami and will be fully integrated with Versapay’s North American offices in Toronto and Atlanta.
“We share a common vision for the digitization of the [accounts receivable] process,” said Craig O’Neill, Versapay’s CEO. “Together, we can accomplish even more to close the digital transformation gap in [accounts receivable], optimizing our clients’ cash flow and driving operational efficiencies.”
Feature image from Towfiqu barbhuiya via Unsplash
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