Kyriba, a provider of cloud treasury and finance solutions, has reached an agreement to acquire FiREapps, a firm that provides enterprise currency management solutions to corporate treasuries.
“FX volatility is a major strategic challenge for treasury organisations,” says Kevin Permenter, senior research analyst for enterprise applications at IDC, a technology analyst firm. “Financial leaders doing business in multiple countries should be looking to adopt a more holistic approach to their global risk management strategies.”
In a release issued today, Kyriba says: “The acquisition will create a highly advanced solution for managing global FX risk, including data gathering and consolidation, reporting, analytics, decision support, payments, hedge accounting and more. The combined result is a faster, more efficient way to manage FX exposures than using old school processes involving spreadsheets and manual data gathering across multiple systems.”
To help explain the benefits of merging these two firms, the release cites a published case study where treasury executives from a multibillion dollar US consumer goods company shared the results of using Kyriba and FiREapps to manage their cash, liquidity, payments and currency exposures across 38 enterprise resource planning (ERP) systems, 25 business units and dozens of global banks. According to the study, the initial result was a reduction in foreign currency net losses, from $90 million (cumulative) in 2013-2015 down to $2 million in 2016, and a near doubling of cash visibility to 95%.
“The acquisition of FiREapps deepens our commitment to helping senior financial executives be more agile and efficient in managing all types of risk, including FX exposures,” says Jean-Luc Robert, chairman and CEO of Kyriba. “We are excited to welcome FiREapps customers, employees and partners into the Kyriba family.”
“The market has been asking for a single-vendor solution to manage the entire breadth of FX currency exposure,” says Wolfgang Koester, founder and CEO of FiREapps. “By joining with Kyriba, we fill that gap with a highly differentiated solution, while also aligning with world-class capabilities for cash and risk management, payments, working capital optimisation and more.”