XBP Europe plans to acquire Exela’s automation unit

SANTA MONICA, Calif. - XBP Europe Holdings, Inc. (NASDAQ:XBP), a provider of bills and payments integration services with a current market capitalization of $35.6 million, announced its intent to acquire Exela Technologies (OTC:XELA) BPA, LLC, a business process automation leader. According to InvestingPro analysis, XBP’s stock is currently trading below its Fair Value, despite falling 47% over the past year. The agreement, still in its non-binding stages, sets the stage for a significant expansion of XBP Europe’s operations.

The acquisition is contingent on BPA completing a corporate reorganization aimed at achieving a more sustainable capital structure and a substantially deleveraged balance sheet. If successful, the deal would propel XBP Europe’s annual revenue from its current $157.15 million to over $1 billion on a pro forma basis for the twelve months ending September 30, 2024. This potential growth comes at a crucial time, as InvestingPro data shows the company currently faces challenges with negative EBITDA of -$2.91 million and weak gross profit margins of 23.17%.

Andrej Jonovic, CEO of XBP Europe, expressed enthusiasm about the prospective deal, highlighting the potential to leverage AI technologies and a strengthened balance sheet to compete globally in business process automation. BPA’s established client base in the Americas and expanding presence in the APAC region are seen as strategic advantages for the combined entity.

Both parties have agreed to proceed with due diligence, negotiate definitive agreements, and seek necessary regulatory and shareholder approvals. However, there is no certainty that a definitive agreement will be reached or that the proposed transaction will be completed. XBP Europe will only disclose further details if and when an agreement is finalized.

Based in Santa Monica, XBP Europe serves over 2,000 clients across various industries, including banking, healthcare, insurance, utilities, and the public sector. The company aims to facilitate digital transformation and improve liquidity in markets by expediting payments and promoting sustainable business practices. InvestingPro analysis indicates a WEAK financial health score, with 8 additional key insights available to subscribers, highlighting the importance of monitoring this transformation journey.

Exela Technologies BPA, LLC offers digital transformation solutions that enhance quality, productivity, and user experience. With a global footprint and proprietary technology, BPA serves more than 1,550 customers worldwide and employs approximately 11,000 staff across five countries.

This announcement contains forward-looking statements and is based on a press release statement. These statements are subject to risks and uncertainties, and actual results may differ materially from those projected. The information herein is provided without any endorsement of the claims.

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