Tradeshift, a company that provides supply chain payments and digitization solutions, announced the acquisition of partner Babelway on Tuesday (Dec. 18).
Babelway enables businesses to adopt the cloud and integrate their various systems with each other. Merging with Tradeshift will enable companies to access Babelway solutions via Tradeshift Link to integrate various systems that businesses use to buy goods and services, pay vendors and sell to other companies, providing an interconnected supply chain.
Tradeshift Link offers a way for banks and third-party service providers to connect into the Tradeshift network and provide their own FinTech solutions to customers, including early payment services or trade finance. The companies noted that the service allows smaller suppliers to more easily access Fortune 500 buyers.
“We believe that B2B commerce should be connected, digital and flexible,” said Tradeshift CEO and Co-founder Christian Lanng in a statement. “We’ve been partnering with Babelway for over six years, and in that time have seen the massive value their technology provides for our users. This significantly extends the capabilities of our platform and takes the friction out of integration.”
Tradeshift has been focusing on merger and acquisition (M&A) activity to fuel growth in recent months. Last month, reports said eInvoice and B2B payments firm Basware confirmed that Tradeshift submitted an unsolicited takeover bid, backed by several investors. At the time, Basware said it was awaiting financing confirmation, but noted there was no guarantee a deal would be struck.
Venture capital has propelled growth for Tradeshift as well. Earlier this year, the company secured $250 million in Series E funding, led by Goldman Sachs and Public Sector Pension (PSP) Investments, as well as other backers. The investment boosted Tradeshift’s valuation to $1.1 billion, and the company noted that it planned to use the funds to focus on international expansion across Asia and Europe.
Tradeshift also emphasized its focus on artificial intelligence (AI) and blockchain as it augments its supply chain payments capabilities.
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