The Breaking News Category

IBM to Sunset Emptoris, Transition Customers to SAP Ariba as Part of Broader Partnership Agreement

SAP Ariba and IBM Emptoris announced this morning at Sapphire 2017 that they were creating a strategic partnership. The deal represents a significant commitment by both organizations that spans applications, cognitive collaboration (SAP Leonardo and IBM Watson) and professional services. The combination of efforts is not, however, an acquisition of IBM Emptoris by SAP Ariba, which had been a rumor in the market for a number of weeks. Earlier today, I had the chance to speak to Alex Atzberger, president of SAP Ariba, and Michael O’Leary, director of procurement solutions and supply chain insights at IBM Watson Customer Engagement, to learn more about the partnership.

Ivalua Raises $70 Million from KKR: First Take Analysis

Ivalua, a procurement technology suite vendor, announced Wednesday it had raised $70 million in a minority investment round from private equity firm KKR. Originally a France-based firm, Ivalua moved its headquarters to the U.S. in recent years and has continued to expand globally. While terms of the investment — nor Ivalua’s revenue — were not disclosed, Spend Matters estimates the transaction values the firm at less than the price/revenue multiple of Coupa and more than what Accel-KKR paid for Jaggaer (when it took SciQuest private).

Coupa Enters an Agreement to Buy Trade Extensions: A Game Changing Move For Strategic Sourcing

After market close on Friday, Coupa announced it had entered into an agreement to purchase Trade Extensions, a specialist e-sourcing and strategic sourcing optimization vendor.

Coupa will pay $45 million for Trade Extensions when the transaction closes — $41 million will be paid in cash and $4 million in stock (which will be issued, it appears, to employees). Spend Matters estimates the valuation range for Trade Extensions (as a multiple of revenue) is in line with other typical SaaS companies, and that Coupa did not pay a premium for Trade Extensions, especially considering how unique the asset is in the market.

Tradeshift to Acquire IBX Business Network from Capgemini

Tradeshift Baiwang

Tradeshift announced Wednesday it had acquired acquired IBX Business Network from Capgemini. Spend Matters believes the transaction is, by a significant margin, Tradeshift’s most important acquisition to date. And from the “seller” side of the deal, Capgemini suggests that the transaction represents, from a corporate development perspective, more than just the divestiture of a business unit. Spend Matters will be speaking with Tradeshift later today and will provide additional information and analysis on the transaction later this week. We are particularly keen to understand how Tradeshift plans to rationalize the proven e-procurement capability within IBX with what it is in the early stages of rolling out to customers in 2017.

SciQuest Rebrands Itself as Jaggaer

Earlier today, SciQuest, a source-to-pay technology provider, announced it had rebranded itself as Jaggaer.

The new name is “a derivation of the German word for hunter, and reflects the company’s brand promise of delivering comprehensive, focused spend solutions for a broad range of businesses.”

For us, the name conjures up memories of sticky bar room floors from college.

Coupa Acquires Spend360, Adds Best-in-Class Spend Classification Capability to its Suite

Coupa announced early Tuesday it had acquired Spend360 International Ltd., a best-in-class spend classification vendor. Coupa “has acquired substantially all of the assets of Spend360 International Ltd. to help companies digitize antiquated processes for data classification,” the company said in the acquisition announcement. Coupa noted the acquisition closed in December 2016 and that financial terms were not disclosed. Further, “Coupa expects the capabilities from Spend360 to be made available to select Coupa customers later this year. As part of the acquisition, the Spend360 team has joined Coupa to continue developing forward-thinking approaches for data classification and predictive insights.”

GTCR Acquires Beeline From Adecco, Merges VMS Firm with IQNavigator

GTCR, a Chicago-based private equity firm and owner of IQNavigator (IQN), announced early Tuesday it had acquired Beeline, a vendor management system (VMS) and freelancer management system (FMS) provider, from Adecco. Beeline had previously been part of Adecco’s acquisition of MPS, which valued that combined entity (including Beeline) at $1.3 billion in 2009. Financial terms of GTCR’s acquisition of Beeline were not disclosed.

Coupa IPO Pops on Opening: What Do We Think?

Coupa (NASDAQ: COUP), which priced last night at the higher end of its revised range ($18), nearly doubled this morning, after it started trading. As of publishing of this post, it has dropped slightly — up 85%+ since the market open — but it is still above $30 per share. The current stock price gives Coupa a valuation within striking distance of $2B, which would equate to above 10x revenue on a forward basis or over 15x on a trailing basis. Moreover, the stock price jump likely makes most if not all of the investors “whole” given preferences and other stipulations typical of later-stage funding rounds — although the nuances here can be complicated. More importantly, here’s my quick take on the implications for the sector of the IPO and the valuation (opinions are mine and do not necessarily reflect those of my colleagues at Azul Partners or Spend Matters).

BravoSolution Acquires P2P Provider Puridiom

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 overview provides a summary of the transaction and features a Q&A on the transaction with BravoSolution’s CEO Jim Wetekamp. Terms of the transaction were not announced and both organizations are privately held companies.

Microsoft and LinkedIn Connect with $26.2B Acquisition Deal

In a surprising move, Microsoft announced Monday an all-cash deal to acquire LinkedIn for $26.2 billion, the equivalent of $196 per share. LinkedIn is a significant player in the talent acquisition and recruiting space. Revenue from its Talent Solutions business unit accounted for $558 million, or 65% of total revenues, in Q1 2016, and grew 41% year-over-year.

Tradeshift Raises $75M in Series D Funding Round

FusionOps funding

Tradeshift raised $75 million in a recent Series D funding round, bringing the P2P platform provider’s valuation up to nearly $600 million. Data Collective led the latest funding round, and other investors included HSBC, American Express Ventures, CreditEase Fintech Investment Fund, Notion Capital and Pavilion Capital. Tradeshift, which now has a user base of more than 800,000, has reportedly raised $205 million total this year and is on track to bring in $50 million in revenue.

Elemica Bought By Private Equity Firm Thoma Bravo

Tradeshift Baiwang

Supply chain operating network provider Elemica will be acquired by private equity firm Thoma Bravo LLC. The two companies announced the deal earlier today but did not disclose financial details. In a press release, the two companies said the acquisition will allow for a greater focus on resources and investing in next-generation technologies and expand Elemica’s supply chain solution capabilities. According to Elemica CEO John Blyzinskyj, the acquisition also means a faster time-to-market for supply chain solutions.