Oxygen snaps up Satago in fintech on fintech acquisition
Payment platform acquires “hugely complementary” cash-flow management firm Satago.
Oxygen Finance Ltd has acquired Satago in an effort to create an all-in-one cash flow finance solution for small businesses. The details of the deal have not been disclosed.
Oxygen is an enabler of early payment between buyers and suppliers. The technology-based platform allows large public and private sector organisations to pay their suppliers ahead of contracted terms, in exchange for a discount against invoices. The idea is that buyers generate savings while small businesses get paid more quickly.
A recent report from Bacs Payment Schemes Ltd revealed that nearly 50 per cent of UK SMEs are paid late.
Satago has its own take on solving that same problem: a cash-flow management software that integrates with existing accounting packages, with selective invoice finance capability attached. The platform automates communications with debtors, sets invoice reminders, identifies periods of cash-flow constraint, and so on. Its invoice finance product may be accessed on an on-demand basis, owing to a tight integration with the cash-flow management platform.
Commenting on the acquisition, Oxygen CEO Ben Jackson called Satago “hugely complementary”. He said that the combined might of these firms will be well positioned to lead the market “in delivering modern, integrated payment and receivable strategies for large buying organisations and their suppliers, SMEs included”.
Satago clinched £4.6m in funding from ESF Capital in the summer of last year, including £1.6m in equity money.
The firm also became one of equity crowdfunder Seedrs’ first campaigns when it raised £30k at a valuation of £184,286 in July 2012. Back then, Satago was wholly focused on the cash-flow management side of the business. The company went on to raise smaller amounts of money on the Seedrs platform in March 2014 and May 2016 respectively.
“Satago is a natural fit for Oxygen,” said Steven Renwick (pictured above), founder and CEO of Satago. “Our accounts receivable technology and supplier-focused single invoice finance facility is neatly complemented by Oxygen’s early payment technology.”