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Artificial Solutions

Partnership with UiPath, a global RPA leader

13 May 2020 / Corporate research

Artificial Solutions is developing a compelling base of partnerships with leading vendors in the Robotic Process Automation (RPA) segment. The latest addition is UiPath, an RPA market leader with over 5,000 enterprise customers, including a significant number of the Fortune top 50 companies, and a valuation at its last funding round of $7bn. Companies are adopting technologies that automate processes, including customer-facing activities. As a leading global vendor of AI-driven chatbots, Artificial Solutions is well-positioned to benefit from these trends.

  • RPA market: RPA is the use of software robots to handle routine, repetitive, rule-based or predictable digital tasks or processes. The aim is for robots to eliminate manual/human involvement in these processes, improving efficiency and productivity. The RPA market is forecast to be worth $4bn in 2020.
  • Integration: RPA vendors, such as UiPath and Blue Prism (also a partner), are motivated to integrate with chatbots, as conversations captured through automated interfaces will likely trigger a greater volume of transaction flow through their automated process platforms, generating higher usage fees.
  • Hyperautomation: Gartner defines “hyperautomation” as an approach in which companies identify and automate as many business processes as possible, and predicts that, by 2024, organisations will lower operational costs by 30% by combining technologies with redesigned operational processes.
  • RPA opportunity: This is potentially substantial, but still in its early phases for Artificial Solutions, which continues to see strong rates of customer acquisition – 12 new names were added in 2019, taking the total to 31. Systems integrators are contributing strongly to this growth.
  • Investment summary: Several customers are expanding their deployments, one covering 11m end-users. The resulting increase in transaction volumes is consistent with expected strong growth in high-margin usage revenue. Our DCF analysis produces an implied fair enterprise value of €128m and an equity implied fair value of €116m, while the most recent IP valuation analysis, undertaken in 2019, generated a patent valuation range of $125m to $153m.

 

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