M&A Watch: Which Top VMS Will Be Acquired in The Next 12 Months? [PRO]

Services procurement management and categories are increasingly getting intertwined with regular procurement operations and oversight. Year-by-year, procurement is gaining influence over a wide variety of services spending areas, from basic contingent labor to complex business process outsourcing (BPO) areas – not to mention a large number of categories in between. Yet best-of-breed contingent and SOW – as opposed to specialized category specific – suite solutions for services procurement such as Fieldglass, IQNavigator, Beeline and Provade have long remained independent of suite procurement specialists and ERP providers, which have the dominant ear of procurement senior management outside of the services area. This is likely to change for a variety of reasons in the coming years, one of which is our hypothesis that SAP (and possibly IBM or Oracle) will acquire one of the top VMS providers, even paying a healthy premium (and market valuation) to do so. We believe with near certainty (90% probability) that at least one transaction will happen in the next 12 months.

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