Proactis and Intesource – Acquisition Analysis and Valuation Considerations [PRO]

and - May 7, 2014 2:57 AM | Categories: M&A, Procurement Commentary, Solution Providers
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In late April, the Spend Matters research team covered some of the highlights concerning Proactis’s acquisition of Intesource at what many might consider to be an uncharacteristically low valuation. While we’re convinced Proactis is buying a sound asset with Intesource, there’s likely much more to the deal than many are considering on the surface. In this Spend Matters PRO commentary, we consider additional considerations regarding the acquisition and the deal valuation that should help bring things into better focus for customers, prospects, and technology providers alike. Based on Intesource’s marketing, it would be easy to peg them as focusing solely on strategic sourcing – including the software aspects of structuring and running the RFx and reverse auction process. But Intesource is more than this and is very much defined by both the primary market serves (grocery and broader retail) and a business model that is not easily comparable with peers.

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