The strategic acquisition of Emersion in 2020 is now starting to pay material dividends.

High-growth fintech Novatti (ASX:NOV) has confirmed the US launch of Emersion – its cloud-based SaaS subscriber billing and business automation subsidiary.

It marks a key step forward for the company, opening up a channel for B2B billing and accounts-payable automation services in the world’s largest addressable market, that’s also expected to grow rapidly in the years ahead.

The Emersion platform works to automate end-to-end business processes such as customer engagement, system integration, billing and collections.

Its key value add is to automate those functions to smooth out cash flows, cut unnecessary costs and free clients up to focus on their core business operations.

CEO of Emersion, Paul Dundas, said: “Emersion enables our clients to focus on growing their business. Our value proposition is simple: we integrate your systems so that you can focus on your customers. Importantly, our platform has been purposefully designed to scale rapidly, which enables us to continue our overseas expansion, targeting key growth markets like the US.”

While Emersion has already gained market share across Australia, New Zealand and Singapore, today’s announcement marks its first push into the US where the accounts payable automation market is expected to double by 2025, to $US4bn.

 

US opportunity

That makes it an exciting accelerant for growth, given that Emersion recorded quarter-on-quarter growth throughout last year following Novatti’s April 2020 acquisition.

“Emersion’s launch in the US comes ahead of significant growth forecast for its key market segments in the coming years,” Novatti CEO Peter Cook said.

“This presents a great opportunity for Novatti, with Emersion’s full SaaS platform expected to deliver high-margin, recurring revenues with each new client.”

Emersion is currently booking an average of five new clients per month, up from around two at the time of Novatti’s acquisition.

Emersion’s expansion will be aided by having  secured a number of key customer onboarding channels in the US market, highlighted by its inclusion on the Salesforce AppExchange as well as the ConnectWise Marketplace.

The March launch is also in line with Novatti’s previous guidance, where it targeted a launch date for Emersion into the US market before the end of Q1.

And it’s justified the strategic decision-making of Novatti’s management team, with what now looks like a materially earnings-accretive acquisition that expands its addressable market from payments processing to SaaS-based billing and business automation services.

 

Multi-channel approach

It also continues a strong run of news flow for the business, led by a record half-year sales result for the six months to December of $7.35m (up 49 per cent year-on-year).

The company’s strong inhouse tech innovation was also recently on display as it pushes into future markets with a new crypto payments gateway.

With momentum across all of its key verticals, Novatti is now separating itself from the pack among ASX-listed payment fintechs with a unique competitive advantage in one of the world’s fastest growing global markets.

This article was developed in collaboration with Novatti, a Stockhead advertiser at the time of publishing.

 This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions

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