BravoSolution Acquires P2P Provider Puridiom

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BravoSolution announced early Monday that it had completed its acquisition of Puridiom, a procure-to-pay (P2P) technology provider specializing in middle market e-procurement. This Spend Matters briefing provides a summary of the transaction and features a Q&A with BravoSolution CEO Jim Wetekamp.

Terms of the transaction were not announced and both organizations are privately held companies. In 2015, Bravo reported €80 million in global revenue and the addition of “80 new customers worldwide.” Puridiom’s past and current customers include Mutual of America, Hershey Entertainment & Resorts, Western & Southern Financial Group and Kroger, according to web sources. Spend Matters estimates that Puridiom has less than $10 million in annual revenue.

Increasing BravoSolution’s Footprint  

Given this revenue delta and BravoSolution’s history of partnering to gain P2P capability to extend its suite, the primary reason for the acquisition should be clear: to increase BravoSolution’s own product footprint in the market. Previously, BravoSolution partnered with both Basware and Verian to provide a set of integrated source-to-pay (S2P) capabilities. (Incidentally, Basware acquired Verian, although BravoSolution maintains partnerships with both organizations to date.)

Spend Matters believes these relationships, longer term, will take the form of go-to-market partnerships (at best), as BravoSolution becomes more directly competitive in the P2P area with its partners over time when the integration matures between the products and Puridiom becomes integrated, and eventually re-platformed, into the BravoAdvantage suite.

“We value our partners and the customer relationships we have developed together — and will continue to support them,” BravoSolution told Spend Matters. “Partners will continue to play a vital role for us and our customers and depending upon customer needs provide a number of advantages including increased support for customer preference as it relates to prime relationships with vendors that the customer knows and trusts. Additionally these partner relationships provide the customer flexibility as it relates to delivery model, specialized services and access to a broad network of additional functionality.”

The March to Suite

The acquisition is significant for the procurement technology industry in that it marks yet another vendor that previously targeted one side of the source-to-contract (S2C) or P2P continuum moving to deliver a full suite offering. Given that BravoSolution competitors have committed to the full suite path for many quarters (and in some cases over a decade), the news suggests the trend shows no signs of abating.

In an FAQ shared with analysts, BravoSolution positioned Puridiom as offering “a comprehensive all-in-one procure-to-pay (P2P) solution that has evolved through years of working with procurement professionals. This includes capabilities such as: Requisition and Approval Workflow, Budget Control and Management, EIPP, Catalog Management and Inventory Fulfillment.”

With the integration of Puridiom into its broader suite, BravoSolution will further shrink the field of “upstream” procurement technology providers with any degree of scale that do not have P2P capability as part of their core offering. Scanmarket, among others, will stand out as one of the last remaining holdouts, along with advanced sourcing specialists such as Trade Extensions and upstarts like Scout RFP.

Integration Beckons

In practice, given the middle market focus of the Puridiom suite, the lingering question BravoSolution will need to answer for customers is whether the Puridiom solution attached to the BravoAdvantage suite can meet the capabilities of Global 2000 companies and large government buying organizations. BravoSolution told analysts that it will continue to “invest in both platforms, as they become increasingly integrated over time.”

In practice, BravoSolution cannot integrate (and ideally replatform) Puridiom fast enough:

  • Given that Verian is already offered as a P2P option on BravoAdvantage, BravoSolution will need to show that its own, native solution is the optimal fit for customers. BravoSolution has told Spend Matters that it will offer deeper integration to Puridiom than partner options “within months”
  • Competitors are rapidly building out the value proposition of integrated suites (e.g., integrated supplier management with P2P)
  • Many customers are increasingly demanding suites as an option even if in practice they end up using solutions — and in many cases multiple P2P solutions for accounts payable automation, invoicing, transactional procurement, shopping/search and workflow/ERP integration — from different providers

Q&A With BravoSolution’s CEO Jim Wetekamp

Spend Matters: Why is it important to become a “full” suite provider?

BravoSolution: Our mission is to enable our customers to unlock the power of procurement. For the past few years this has mostly meant building applications that help value creation through more effective supplier management, negotiation and collaboration. While we have a lot more to do on these upstream activities, we are in a position where we can start focusing on extending the BravoAdvantage platform to drive value capture through the more efficient purchasing, increased contract compliance, and elevated governance that is delivered through the purchase-to-pay process. A platform encompassing these complete features can be transformational for an organization, and we want to be a part of driving that kind of customer value.

Spend Matters: What are customers asking for? Did this factor into the decision?

BravoSolution: Customer demand for all-in-one source-to-pay solutions has clearly been increasing. While there is still a large section of the market that lends itself toward a best-of-breed approach where they may select different offerings across the procurement activities based upon user needs or industry requirements, which we have and will continue to serve through our valuable partner relationships, we took this step to better serve those clients who prefer a single solution/relationship and will continue investing in this direction.

Spend Matters: What is the timeline for the integrated S2P platform?

BravoSolution: Integration activities are already under way and we are in a good position to launch the integrated offering as a key element of our upcoming BravoAdvantage release in early Q1 2017. In parallel we will be aligning all of the operational aspects related to customer support, service levels and cloud delivery options.

Spend Matters: What is your view from the market in 2020 (looking backward) and how will BravoSolution support emerging procurement requirements?

BravoSolution: The way people work is changing. Macro trends such as big data, network models, disruptive technologies and a focus on individual user preferences are intersecting with procurement industry trends regarding full suite integration, strategic procurement, integrated ecosystems and smart systems. Isolated modules of solutions are disappearing, turning into ‘packages’ only, as providers allow for preconfigured and user-driven workflows of capabilities that cross borders from analytics to sourcing to contracting, supplier management, and procurement. This blurring of lines is only possible via a fully integrated solution on a common data repository of master attributes. Through this evolution BravoSolution will be a provider of extended, harmonized, and collaborative procurement solutions that take insight immediately to action and control.

Spend Matters will provide additional analysis of the transaction for Plus and PRO subscribers later this week.

Disclosures: Spend Matters or an affiliate of Spend Matters provided advisory services to BravoSolution in relation to this transaction.

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