PRGX to Acquire Lavante: Solution Overview, Comparative Solution Capability and Competitive Analysis (Part 1) [PRO]

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Earlier this week, PRGX Global, the largest audit recovery services provider by billings, announced it has closed its acquisition of Lavante, a small technology company that competes in the supplier management sub-sector of the procurement technology market. Lavante also had developed audit recovery technology that provides a substitute approach to traditional audit recovery services providers. The transaction, which values Lavante at $4.25 million in cash as well as an earn-out consideration based on Lavante’s performance in selling its cloud-based supplier information management (SIM) and related applications until the end of 2018, provides PRGX with a valuable technology asset in a market segment that Spend Matters research suggests is growing at a healthy double-digit CAGR.

The first installment of this Spend Matters PRO analysis offers an overview of supplier lifecycle management (SLM) market, including supplier management and SIM technologies. It also provides analysis of Lavante’s offerings and how it stack up to competitors, including specialized supplier management providers such as Hiperos/Opus Global, HICX and riskmethods. It also offers a comparative analysis with procurement technology suite providers, including BravoSolution and SciQuest, two suite providers with competitive solutions in the supplier management area. Others suite vendors, including SAP Ariba and Coupa, offer only limited capabilities to support the range of specialized supplier lifecycle management requirements.

The second installment in this series, publishing next week, explores the potential impact of the transaction on PRGX and PRGX customers. It also provides perspective on the changing audit recovery provider landscape — including PRGX competitors such as APEX Analytix and Connolly — and the impact that offerings such as Lavante might have on this conservative market segment.

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