Coupa to Acquire Exari: What Type of CLM Solution Is Coupa Getting? (Part 1) [PRO]

Coupa just announced that it intends to acquire Exari, a leading provider of contract lifecycle management (CLM) solutions. Terms of the deal were not provided, but with Exari having almost 150 employees, it’s not unreasonable that the private firm would have over $30 million in revenues and a deal size valued at just over nine figures. Contract management is a red-hot space right now, and Coupa has a very strategic need for this product. Spend Matters believes that this acquisition is a very smart hand-in-glove acquisition even though it’ll require some alterations to truly fit properly.

Coupa currently has a basic contracting module as part of its “Business Spend Management” application suite within the source-to-pay market, but it was missing two critical aspects of modern CLM that are major strengths for Exari. On a product functionality basis, Exari is one of the very top performers in Spend Matters’ CLM rankings on SolutionMap, and it “ticks all the right boxes” for a best-of-breed CLM performer. It’s also unique in its knowledge-based approach to deep contract modeling rather than just straight AI and machine learning based on contract text analytics.

CLM is also not a one-size-fits-all proposition, and the market landscape depends heavily on many factors. Some providers are much more oriented toward the sell-side — e.g., CPQ-oriented providers such as Apttus or SpringCLM (recently acquired by DocuSign). Some are focused on the mass market with usability being a key focus (e.g., Concord, Outlaw, PandaDoc, etc.). And even within large enterprises looking at firms like Exari, Icertis, Agiloft, SirionLabs, and others, they differ in their requirements as to whether they want “deep” functionality, maximum configurability, ease-of-integration, attractiveness to many functions (e.g., the legal department), and/or being part of a larger application suite.

So, what is Coupa getting with Exari? What types of organizations are the best fit for this solution and the combined solution of Coupa and Exari? Is Exari a solution optimized for legal, procurement or both? And what will Coupa need to do to integrate Exari since this acquisition is not some simple bolt-on, but rather, a core platform component? Finally, what is the impact of this acquisition on the S2P and CLM markets?

This Spend Matters PRO quick take analysis provides insight for Coupa customers and the broader market on specifically what the provider is acquiring. Unlike past acquisitions, we believe Exari represents the greatest stretch away from its core economic buyer (at least historically). Find out why.

For an introduction to Exari, we encourage you to read our Spend Matters PRO review: Introduction & Solution Overview, Strengths/Weakness and Market/Competitive Analysis.

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