Treasury Today Country Profiles in association with Citi

TMS vendor GTreasury acquires Visual Risk

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GTreasury’s acquisition of Visual Risk continues the trend of consolidation in the TMS market.

Treasury management system (TMS) vendor, GTreasury, announced on Tuesday that it has acquired Australia-based risk management and compliance software provider, Visual Risk.

The merger follows a strategic partnership between the two firms that began in October 2017.

According to the press releases, the combination of GTreasury’s cash management software with Visual Risk’s risk analytics and hedge accounting software “will create the most comprehensive and robust treasury and risk management software (TRMS) in the market”.

Inside view

Talking exclusively with Treasury Insights, Terry Beadle, Global Head of Corporate Development at GTreasury, says that the deal was a natural progression after the success of the strategic partnership with Visual Risk. “The more we worked together the more we recognised the possibilities to create a no-comprise TRMS that the treasury market has been looking for.”

Beadle adds that one of the key objectives of the acquisition is to build a system led by insights not just information. “There are plenty of vendors providing solutions that provide treasurers with a lot of data,” he states. “The challenge treasurers face is interpreting this and understanding what it means for its operations and the wider business.”

GTreasury hopes that bringing Visual Risk on board will give its offering an analytical edge. “The aim is to enable treasurers to move away from operational activity and achieve their ambition to become strategic partners, adding more value to the business,” explains Beadle.

The two vendors will continue to operate under their individual brands for the next six to 12 months. During this period GTreasury will begin a period of consultation with its customers, partners and other market participants as it works on integrating Visual Risk into its own offering. Beadle confirms that there will be further announcements around the product roadmap in Q4 this year.

Industry consolidation

The news of GTreasury’s acquisition follows several other market consolidation deals in the TMS space over recent months, most notably Ion Treasury’s purchases of Openlink and Reval.

Today, a handful of big groups own several systems acquired over the years, often with each one pitched to different sizes/complexities of corporate.

Although with any M&A there is always an undercurrent of market fear that once a small private company is swallowed up into a bigger group, innovation will be stifled. In theory, this should keep the market competitive, as the acquirer seeks to capitalise on its investment and new customer base.

For Enrico Camerinelli, Senior Analyst at Aite Group, consolidation in the TMS space is not necessarily a bad thing for the technology these firms are developing. However, he notes that increasingly “treasurers need advisory and consulting services from their vendors rather than pure software functionalities” and that it will “be up to these vendors to blend software with advisory services whilst keeping costs down”.

Concerned treasurers should conduct a thorough review of any post-merger changes to ensure that the proposed roadmap, regarding both technology and advisory, meets their current and future needs.