Putting a P2P Player in Selectica’s Knapsack: Analyzing b-pack’s Procurement Technology Strengths [PRO]

Earlier today, Selectica announced it is acquiring b-pack. We view the transaction, despite its small size, as an important one for a number of reasons. First, it provides further evidence of the move by many vendors including Ariba, SAP, Oracle, Coupa, Ivalua, SciQuest and Proactis to build out or acquire suite capability (and ideally fully integrated suites) in the source-to-pay area. Second, it provides continuing evidence of M&A acceleration within the procurement technology market. And third, from a valuation standpoint, it shows a continued bifurcation of high and low multiples (top-line) assigned to different vendors in the market, regardless of the capability of the underlying technology in question. There are of course many customer and competitive implications of the transaction as well (which we will explore in more details in the coming days on Spend Matters PRO). In this first deeper take on the acquisition today, we offer a high-level review of some of the comparative areas of strength of b-pack. As we suspect many Spend Matters readers are not familiar with b-pack, we hope this analysis can bring them up to speed. A companion analysis on b-pack’s weaknesses will follow.

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