Tallie and Nexonia have merged, with Tallie’s CEO Chris Farrell heading up the new company. Operations will continue out of both Canada (where Nexonia is based) and the United States (where Tallie is based).
A merger like this doesn’t come as a surprise to me as there are lots of specialized business apps. Not only do these niche apps need to compete among themselves—expense management vs. expense management software—but they also need to compete against apps in other categories, such as time tracking or document management. In addition, accounting software are also expanding their offerings, which makes them competitors to the specialized apps in their ecosystems.
If you look at niches such as expenses, receipts, payables and receivables, document management, and time tracking, there’s a lot of crossover. You may have heard of companies such as Expensify, TSheets, ReceiptBank, Hubdoc, Bill.com, SmartVault, and Concur. While they all specialize in different areas, the line is starting to blur in terms of what one app does vs. another. When you get to more enterprise focused apps, like Concur and Nexonia, they can handle what you would need many smaller specialty apps to do.
Accounting software like QuickBooks and Xero are also starting to move beyond their core offerings, into areas that were once restricted to add-ons. You saw this with QuickBooks Online‘s (Intuit) purchase of Lettuce for inventory, and Xero’s in-house development of payroll. While accounting software’s offerings probably won’t be feature-rich enough for larger businesses with more demanding needs, their lite offerings can be enough for the small, small businesses, which make up a majority of businesses.
So, being squeezed by other small niche apps, in addition to larger accounting apps, it only makes sense that to continue to grow and compete, specialized apps would join forces.
What will the combined Tallie and Nexonia merger offer between both of them?
Generally speaking, Nexonia specializes in expense and time management while Tallie specializes in expense reports. Comparing them on paper, Nexonia has the more extensive set of solutions, including: Expenses, Time Sheets, Time Off, Time Allocation, Purchase Orders, and Accounts Payable. Nexonia is a more complex solution, and caters more to larger companies and ones that use ERP solutions such as Netsuite and Intacct.
Tallie focuses on Expense reports (including mileage tracking), and actually has a posted price for its business solution with a request a quote for enterprise. Nexonia only has the option to request a quote or demo.
Combining the two companies means that integrations as well as partnerships can be shared. While there is a lot of crossover between integrations, Nexonia does have a more extensive set of them. Between both companies, there are now integrations with accounting and ERP solutions that include QuickBooks, Xero, Sage, Microsoft, Intacct, and Netsuite.
Other business apps that Nexonia integrates with are Salesforce, SmartVault, and Bill.com. Nexonia also has integrations with travel services such as Amadeus, Atriis, Automatic, Egencia, GetThere, and nuTravel. Lastly, there are integrations with the major credit cards, such as American Express, Chase, Diners Club International, Discover, MasterCard, and VISA.
What Will Happen to the Respective Products?
Currently the products will continue as usual on both sides, but that’s for the “time being”:
For the time being, we’re still providing the same great product with the same amazing team — now with an opportunity for more growth.
Unless I’m completely out to lunch in reading the official words of CEO Chris Farrell, this indicates to me that there will be some merger of the products in the future.