3i invests in xSuite to accelerate its international growth
3i Group plc (“3i”) today announces that it has agreed to invest in xSuite, a leading accounts payable process automation specialist focused on the SAP ecosystem. 3i will invest alongside the former owners, funds advised by Pinova Capital GmbH (“PINOVA”) and the management team, who are reinvesting in the company as minority shareholders.
Based in Ahrensburg/Hamburg, Germany, xSuite specializes in software applications for Supplier Invoice Automation (“APIA”), which enable customers to digitize, streamline and automate invoice processing, helping them reduce costs , increase efficiency and improve quality. More than 230 employees from the company’s offices in Germany, Denmark, the Netherlands, Singapore, Slovakia, Spain and the United States develop additional workflows and integration capabilities specific to the SAP ecosystem, where the company serves many of the world’s most complex organizations and has strong technical expertise.
xSuite has a growing customer base of over 1,200 customers in over 60 countries with best-in-class retention. Customer satisfaction is high given the company’s advanced technology capabilities, strong service levels, and the value provided by its automation capabilities. xSuite has historically specialized in the DACH region, but has a growing presence in the US where it has gained several blue chip customers such as Dole, Lionsgate and Crocs and is growing rapidly.
The APIA market is growing. Forecasts call for a CAGR of over 10%, driven by the digitalization of workflows and a focus on reducing labor costs. Growth is also driven by increased billing volumes, the adoption of automation solutions, the expansion of the use of these solutions and the transition to specialized applications such as those of xSuite.
3i specializes in helping mid-size companies internationalize and access new markets: through its global network of experts, 3i will help xSuite strengthen its emerging presence in the US market and expand its operations North Americans. With 3i, xSuite will also focus on accelerating the transition to more subscription software revenue. 3i will also be able to help the xSuite team accelerate its growth by leveraging business best practices it has implemented at other recent portfolio companies.
Ulf von Haacke, Head of Germany, Private Equity, 3i said: “We believe there is significant potential to internationalize and grow xSuite in partnership with its experienced management team and motivated and highly skilled employees. the recent successful exit from Magnitude and co-investment in insightsoftware, our investment in xSuite illustrates 3i’s focus on enterprise software as a key pillar of our business and technology services investment strategy. are the perfect partner for mid-sized software companies that want to take it to the next level such as xSuite.”
Joern Pelzer, Partner, PINOVA, said: “Over the past few years, we have developed xSuite into a leading provider of software applications for APIA. 3i’s investment will allow xSuite to execute the growth plan even faster. envisioned North American market and create a leading player in the North American market. We are pleased to support the further development of xSuite with 3i and the management team.”
Matthias Lemenkühler, CEO of xSuite, said: “3i is a natural fit for us given their extensive experience in international growth strategies and deep industry expertise. We are excited to work with them to bring xSuite’s offering to a wider audience.
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3i Group plc
Silvia Santoro
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Catherine van der Kroft
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Tel: +44 20 7975 3258
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Tel: +44 20 7975 3021
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About 3i Group
3i is a leading international investment manager specializing in private equity and middle market infrastructure. Its main investment markets are Northern Europe and North America. For more information, visit: www.3i.com
About xSuite
Based in Ahrensburg/Hamburg, Germany, xSuite is a leading AP process automation specialist focused on the SAP ecosystem. It specializes in software applications for supplier invoice automation (“APIA”), enabling customers to digitize, streamline and automate invoice processing. xSuite has over 1,200 customers in over 60 countries and 220,000 users process over 60 million invoices per year. For more information, visit: www.xsuite.com
About PINOVA
PINOVA Capital is an independent private equity firm investing in high-growth technology companies in German-speaking regions. PINOVA Capital focuses on “Mittelstand” companies with a turnover of between 10 and 75 million euros in the industrial technology and information technology sectors. For more information, visit: www.pinovacapital.com
Regulatory information
This transaction involved a recommendation from 3i Investments plc, advised by 3i Germany.