Even though you won't read about it on the wires, cc-hubwoo recently acquired Spend Management services provider Blue Solutions. The press release -- which was not distributed as far as I can tell -- can be found here (hat-tip: Eric Strovink). For those who don't know Blue Solutions, the boutique firm focused primarily on eProcurement implementations and had a strong background doing Ariba implementations. In a conversation I had with Blue Solutions' Chris Happ last fall, I learned that they were also seeking to diversify their prospect base beyond Ariba, which this acquisition will clearly do for them. According to the announcement, "with 12 employees, the company achieved revenues of approximately $2.2 million in 2007 and is profitable." I'm guessing that Blue Solution also had a number of contractors as well which factored into that revenue number (I seem to recall they told me this, but I can't find it in my notes).
I had the chance to catch up with cc-hubwoo this week after the deal was announced and learned that this acquisition was largely due to their need to bring onboard additional technology consulting capacity given their strong pipeline of work in core procurement areas: catalog management, supplier networks, supplier adoption, supplier on-boarding, etc. But I'm sure that cc-Hubwoo will be using these new resources to focus on SAP SRM implementations rather than Ariba ones. It will also serve them well to have Ariba trained resources for SAP customers shifting from older instances of Ariba Buyer onto SAP. In the end, at what would appear a relatively low valuation of $1.5 million -- according to the press release -- it sounds like cc-hubwoo can't go wrong with this deal provided they can keep Blue Solutions' resources from migrating to greener pastures.
- Jason Busch