M&A Watch: Five BPO/Solution Oriented Procurement Firms That Are Most Likely to Be Acquired [Plus+]

Given the recent string of acquisitions we’ve observed in the procurement software market (e.g., OB10/Tungsten, SciQuest/CombineNet) and the combination of services/BPO and software/solution assets together (e.g., Procurian/Accenture, Xchanging/MM4), it would be easy to conclude that more combinations are in the works. Our connections in the market lend further credence to further deal activity underway. We believe this is especially true in the services market with many potential targets in the business process outsourcing and managed services areas, as larger firms scramble to acquire capabilities to catch up with rivals so they can check the box in RFPs and gain competitive advantages in the ability to up-sell/cross-sell (one of the real reasons we believe was behind the Procurian/Accenture deal in our book). But who is likely on the shopping list? We provide a list of our top five below after first exploring why large BPOs perceive the need to expand their footprint.

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