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”. 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.”