Earlier today, IQNavigator, one of the top VMS platform providers (and also an MSP), announced that procurement and staffing industry outsider, Lou Andreozzi, would be taking over the helm. Andreozzi is replacing John Raeder, who founded IQNavigator ten years ago. John was known as someone in the market who was both a tenacious sales leader and innovator -- an ideal prescription for a fast growth entrepreneurial company coming out of the starting gate. Andreozzi, in contrast, appears on paper to be someone with the experience and credentials to ultimately take IQNavigator through a potential future IPO while in the meantime, putting in place the processes and systems to get the company to the final test before granting GTCR a windfall generating liquidity event: $100+ million in revenue.
Many people in the industry have enjoyed contrasting IQNavigator's growth with that of arch rival Fieldglass. While the intelligence I have today suggests that Fieldglass has more customers -- thanks to a large number of channel relationships -- my same sources also tell me that IQNavigator is materially larger on the revenue side, owing to its ability to provide both software and enabling MSP capabilities. Neither approach is wrong or right and given the success of both, it shows that multiple models can win in the contingent sector if they focus on what customers are looking for.
Still, IQNavigator will be entering a new stage of organizational maturity by appointing such an experienced leader. Andreozzi previously served as President and CEO of a $1.2 billion dollar operating division of LexisNexis. Having been through a number of acquisitions and having managed such a large P&L, he'll bring a level of management experience to IQNavigator that should prove invaluable in continuing the provider's high growth trajectory. Many start-ups fizzle out in between $25 million and $100 million in revenue. I'm guessing that under Andreozzi's leadership, that the $100 million target will be in range sooner rather than later. Stay tuned for further coverage of the news as Spend Matters interviews Andreozzi in the coming weeks, exploring his interest in the sector and why services procurement represents such a high growth opportunity.