The Optimization, M&A Category

Procurement Technology and Solutions M&A Outlook: 10 Predictions for 2019 (Part 2) [PRO]

In the first installment of our M&A predictions for 2019, I explored the deals that have happened already in 2018, as well as our first three of ten prognostications for next year. First, private equity firms will play an increased role in the sector. Second, valuations will be all over the map. And third, peripheral players will respond to the “Amazon” effect.

Our next three predictions have a common theme: modules and areas within the procurement technology spectrum that are heating up. (Incidentally, general situational awareness is more important than ever as more and more buyers — including strategic and financial, not to mention a new type: financial backing strategic — think about putting dry powder to work and sellers evaluate their options.) So, let’s dive right in.

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.

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 Beginner’s Guide to Post-Merger Integration Sourcing

Spend Matters welcomes this guest post from Eleonore de Montjoye, of GEP.

M&A advisory firms will often provide savings targets for a procurement department’s post-merger integration, which in practice is often not fully realized. Procurement does have the potential to bring tangible and rapid P&L benefits from a merger or an acquisition, but this can only be done with the right approach and expertise. It is essential to consider procurement strategically, rather than as a hunt for immediate gratification, and to understand and align on top-level business strategy. This must result in a phased plan to guarantee the best benefits for the new organization.

Procurement Acquisitions: M&A Forecasts and Customer/Market Implications [PRO]

This afternoon during the Procurement Technology and Strategy track at Commodity/PROcurement EDGE, Jason Busch and Pierre Mitchell will present: Procurement, A/P and Supply Chain Solution Provider Transactions – Recent Acquisition Analysis, M&A Forecast, and Customer & Market Implications. Their presentation offers a procurement M&A and IPO market background/discussion, valuation ranges based on recent transactions and what they signal, an illustrative sector specific acquisition outlook and observations on what overall procurement provider M&A activity means for customers (and partners). Spend Matters PRO members: click on through to download the slides!

Procurement Vendor Valuation, M&A, and IPOs: Recent Deals and 2014 Forecast [PRO]

In this Spend Matters PRO series looking at a range of acquisition and valuation topics, we’ll consider recent transactions and valuation ranges, likely IPO and/or acquisition candidates, and a general investment outlook for 2014. Later, we’ll explore what it means for customers, partners, and competitors – and how to prepare for a rapidly changing ecosystem, thanks to the influx of additional capital (which may or may not be a good thing for customers, depending on the situation!) Click through to read the latest on SciQuest/CombineNet, OB10/Tungsten, and Xchanging/MarketMaker 4 - and what it means for you.

Advertising Mergers and Marketing Spend – Procurement and the Publicis Omnicom Combination [PRO]

Even if ‘Publicis Omnicom’ sounds like a Transformer, the name that will result from the proposed transaction will represent two of the Top 4 global advertising brands merging into a giant, single entity that dominates revenue and billings in the advertising sector. This is more than a summer blockbuster (albeit one without French subtitles, missing an “e” on the end of group). Naming conventions aside, if the transaction proceeds, this Franco-American co-production will significantly impact almost all marketing and advertising spend across most Global 2000 companies – either directly or indirectly (as the rest of the market responds to it).