SciQuest to be Acquired by Private-Equity Firm AKKR

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SciQuest Inc. will be acquired by Accel-KKR (AKKR), a tech-focused private-equity firm, for approximately $509 million.

In an announcement, SciQuest CEO Stephen Wiehe said the company expects to continue to “accelerate innovation, increase efficiency” and expand its solution suite under the new private ownership.

AKKR has been a stockholder of SciQuest since 2014 and currently owns 4.9% of the solution provider. Once the deal is complete, AKKR will own 100% of of the company. The transaction is expected to close in the third quarter of 2016.

Spend Matters Take

As Spend Matters Founder and Head of Strategy Jason Busch pointed out, this is the second time SciQuest has been taken private. However, this time, it is on “much more stable footing.”

Busch added:

“SciQuest will no doubt benefit from the rigor that a technology-centric buyout shop such as AKKR can bring, including providing guidance and input on how it can best expand its presence across market segments (industries, geographies, etc.) that it has not targeted aggressively in the past with its core purchase-to-pay (P2P) capabilities.

“Moreover, AKKR is likely to leverage SciQuest as a core asset on which it can build an expanded portfolio of procurement technology capabilities. We could see tuck-in acquisitions in numerous sectors that would have been difficult for SciQuest to pull off with its own balance sheet, but now in partnership with a large private equity firm, it should be able to — additions that will be key to remain competitive and build market share inroads against competitors such as SAP/Ariba, Oracle and Coupa.”

Stay tuned to more in-depth coverage of the acquisition on Spend Matters PRO.

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