The M&A Category

Coupa and Hiperos: Customer Recommendations [PRO]

This Spend Matters PRO research brief provides analysis in support of Hiperos and Coupa customers following this week’s news that Coupa is acquiring Hiperos.

We’ve examined the implications of the deal on the supplier management landscape and done a head-to-head comparison of the providers.

Now this brief includes recommendations for immediate steps and longer-term considerations that are generic to procurement technology M&A transactions in general — such as change of control clause implications — and specific to this acquisition.

We encourage Spend Matters PRO practitioner clients who are using or considering Hiperos to contact us for more information on how the acquisition could affect them.

Now read on to get the customer/prospect recommendations for Hiperos and Coupa.

Coupa and Hiperos: Supplier Management, Compliance and Risk Landscape Implications [PRO]

This Spend Matters PRO brief explores the competitive implications of the Coupa-Hiperos transaction on the supplier management landscape. The analysis includes summary sector M&A implications and summary landscape/competitive implications. It also explores the potential impact on closer competitors to Hiperos (e.g., Aravo), more distant, network and community oriented peers (e.g., Achilles, Avetta, Browz, etc.); and “sleeping giants” on the periphery of the market such as D&B and Thomson Reuters.

Perhaps most relevant of all, as “compliance as a service” becomes more commonplace as a component of source-to-pay systems in areas ranging from supplier qualification to transactional/invoicing areas, we believe these latter groups may begin to come into contact with Coupa for the first time as the worlds of supplier intelligence and hybrid software, network and compliance collide in a networked manner across various industries.

Coupa buying Hiperos: Acquisition Facts, Analysis and Insight [PRO]

Just this morning Coupa announced it was acquiring Hiperos as a carve-out transaction from Opus, which previously owned the supplier management, compliance and risk management solution provider. This Spend Matters PRO analysis provides background and quick facts on Hiperos. It also offers analysis and insight on what the transaction brings to Coupa from a capability perspective and attempts to answer the question: Why Hiperos?

Subsequent Spend Matters subscription briefs (PRO and SolutionMap Insider) will provide insight and analysis of the transaction by exploring the competitive implications of the acquisition for the supplier management and compliance market, offering additional customer insight and recommendations and providing a “Head-to-Head” analysis of Coupa and Hiperos from a supplier-management capability perspective.

Read this briefing to find out more about what Coupa is getting and possible reasons behind the Hiperos deal.

Coupa Buying Hiperos — Adding Compliance and Risk Intelligence Prowess to Its Business Spend Management Insight

Business spend management vendor Coupa announced Monday morning that it has acquired Hiperos, a provider of third-party risk management. Coupa bought Hiperos from Opus. Alacra and all other Opus assets were not part of the transaction. The move lets Coupa, which is based in San Mateo, California, add more supplier compliance and risk intelligence insight into spend transactions and put a greater focus on reducing third-party risk. Spend Matters will have updates on the breaking news and an analysis later today.

Gary Hare: Coupa-Aquiire Deal May Signal the ‘Start of True E-procurement for the Mid-market’

BuyerQuest

After Coupa bought Aquiire in October, procurement veteran Gary Hare said in a Spend Matters interview that the deal “surely sends a signal, but maybe not an obvious one.” Hare knows where Aquiire came from and possibly where this acquisition is taking Coupa. He knows because until 2009 he led Vinimaya before it morphed into Aquiire — back when the company got several of the patents that Coupa hopes will propel it forward. So read about the future of e-procurement in this Q&A, which will appear in two parts.

Top Posts of Fall 2018: Market Consolidation, Conference Season and Intensifying Trade Tensions

Procurement

As students went back to school and businesses shook off the haze of a sultry summer, the procurement world kicked off fall with bang. Leaving little time to reorient after Labor Day, we saw major acquisitions in several sectors of the procurement software market, along with new insights from the fall conference circuit and continuing developments in the tense global trade environment.

Take some time this Thanksgiving weekend to catch up on our most-read coverage from Fall 2018 and prepare for the end of the year with the latest news and research on Spend Matters PRO and SolutionMap Insider.

Five Reasons Why Tradeshift Would Acquire Basware [PRO]

Monday afternoon, Bloomberg reported that Tradeshift, a procure-to-pay provider and marketplace enabler, was behind the unsolicited offer to acquire Basware, a Europe-based procure-to-pay provider. The offer raises the obvious question: How would two similar companies — in terms of product overlap — benefit from joining forces? And more specifically, what’s in it for Tradeshift?

This Spend Matters PRO research brief attempts to answer these questions, exploring five reasons why a vendor with what first appears to be a near identical product footprint to Basware would consider such a move to bring the two together. Hint: There’s likely more to the proposed transaction than what appears on the surface (i.e., market consolidation, valuation arbitrage).

Note: A subsequent SolutionMap Insider subscriber analysis will provide insight into how both providers stack up based on the latest Q3 SolutionMap benchmark for Invoice-to-Pay.

A Potential Basware Takeover: Speculation Abounds

Earlier today, Basware, a Europe-based procure-to-pay provider that, through integrated partner capabilities, also offers broader source-to-pay solutions, responded to “media speculation” that it had received a takeover offer, resulting in a material run up in its share price. In a press announcement published Friday, Nov. 16, the vendor said it had been "approached with a non-binding and highly conditional indicative proposal for a possible tender offer for the entire share capital of Basware." The wording of the full release may provide some hints as to what kind of firm is considering an offer. But who the potential acquirer is perhaps matters less than what a Basware takeover could mean more broadly for the procurement technology market, in which Basware has made considerable gains within recent years.

Commodities Roundup: Global Steel Production, M&A Activity and an Alunorte Update

For the buyers and category managers out there, especially those of you deep in the weeds of buying and managing commodities, here’s a quick rundown of news and thoughts from particular commodity markets. From price movements to policy decisions, we scour the landscape for what matters. This week: Steel production rising, M&A activity, a Spitfire for your wrist.

With Coupa Taking Aquiire, Only 2 Specialists Left Standing (Updated 2018 E-Procurement Market Forecast and Competitive Sector Implications) [PRO]

Coupa (cleverly) has been snapping up specialized technology in the e-procurement market to further enhance its capabilities (re: Simeno and Aquiire). In doing so, it has also acted as consolidator, reducing the available e-procurement supply market for both customers and competitors. In North America today (and globally, as far as we are aware), there are only two specialist independent e-procurement specialists remaining in the market: BuyerQuest and Vroozi.

Of course to this list you need to add a few folks in Europe — Wescale (which has not expressed interest in pursuing North American sales opportunities, at least with our clients), OpusCapita and Proactis. And lest we not forget larger providers such as Basware, Ivalua, Jaggaer, etc. (in addition to Oracle and SAP Ariba). But the non-suite, best-of-breed supply market for e-procurement, at least in North America, is getting very thin.

This two-part Spend Matters PRO analysis provides Spend Matters commentary on what Coupa’s acquisitive tendencies, in particular the purchase of Aquiire this week, might suggest for competitors and future competitors. Not to pat ourselves on the back, but continued sector M&A was a top prediction we suggested earlier in 2018.

The research brief begins by sharing our updated 2018 market forecast (CAGR, size, etc.) for e-procurement based on 1H 2018 activity. Then we provide commentary and analysis focusing on the implications of continued market consolidation for three segments of the competitive market: ERP providers that have not yet placed their best foot forward when it comes to e-procurement and procure-to-pay (including NetSuite/Oracle, Sage and Workday), Coupa suite competitors (e.g., Basware, Ivalua, Jaggaer, Oracle, SAP Ariba, etc.) and specialist providers (e.g., BuyerQuest, Vroozi, Wescale, etc.).

Part 2 of this analysis will provide a closer analysis of what Coupa’s increasing “post punch-out” product / IP arsenal (inclusive of Aquiire) might have on top e-procurement competitors when it comes to how customers actually look at and use these technologies — both during a software selection and when deploying/scaling e-procurement programs.

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Procurement’s Spend Analytics Expertise is Untapped Strategic Lever for M&A success

Mergers and acquisitions provide a constant reminder of how business is always in flux and how executives need to meet the challenge of managing it. The first 100 days after a merger or acquisition often set the tone for the new entity and can influence long-term success. The environment is typically perfect for early procurement synergy capture, where when executed correctly, procurement optimization can improve EBITDA by an average of 10% to 30%, which is one reason why procurement is an untapped strategic lever for M&A. With effective spend analytics, organizations can better size up the savings based on the combined entities spend in key procurement categories and identify the commonality of suppliers across the merged entities and categories where spend is highly fragmented.

Coupa Buys Aquiire, Adding to Its Lead in Catalog Search and Front-End Shopping Usability

Coupa is buying Aquiire, a provider of e-procurement software that brings notable capabilities in real-time search and catalog management, for an undisclosed sum, the company announced Monday. In purchasing Aquiire, Coupa gains not only additional modern front-end shopping capabilities (some might argue among the most advanced) but also a complement to the industry-leading catalog management technology it gained from acquiring Simeno in December 2017.