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).
Breaking News Content
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.
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 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.
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.
SciQuest Inc. will be acquired by Accel-KKR (AKKR), a tech-focused private equity firm, for approximately $509 million. In an announcement, SciQuest CEO Stephen Wiehe said the company expects to continue to “accelerate innovation, increase efficiency” and expand its solution suite under the new private ownership. AKKR has been a stockholder of SciQuest since 2014 and currently owns 4.9% of the solution provider. Once the deal is complete, AKKR will own 100% of of the company.
The e-invoicing, procure-to-pay (P2P) and trade financing markets in the Nordics just got a lot more interesting. Earlier Tuesday, OpusCapita, which is not well known outside of the Nordics yet has more than €250 million in annual revenue, announced it would acquire catalog management and procurement specialist jCatalog. The terms of the deal were not disclosed, other than that “the agreement has been closed on 25 April 2016.”
MBO Partners announced Thursday it is launching a new initiative to expand internationally. MBO described the initiative as “a new international sales and service delivery strategy based on a network of qualified Member Firms.” To date, MBO client spend outside of the U.S. has been managed through relationships with sub-contracted engagement providers that support contractors for MBO clients across more than 80 countries. MBO said the new network “will supplement MBO’s existing relationships” with those providers.
Toptal, a network of freelance software engineers and designers, announced Tuesday it acquired Skillbridge, an online talent marketplace for non-technical business professionals, for an undisclosed amount. By bringing Skillbridge’s broader network of “top-tier elite business freelancers” onto its platform, Toptal extends its business into a attractive adjacent market segment of enhancing scale and platform economies. The acquisition is Toptal's first entry into non-tech talent market
TalentWave is the new name and identity of the combined independent workforce solution firms ICon Professional Services and Synergy. The two businesses merged in October 2015 under the auspices of Serent Capital, which in February 2015 acquired a majority equity share in ICon. Talent Wave CEO Teresa Creech told us in an interview that the rebranding marks a major milestone in the integration of the two businesses and their teams as well at the launch of new strategy aligned to accelerating changes in the independent workforce solution space.
Basware announced Thursday it acquired Verian, a move that Basware said will help it expand its cloud-based business revenues in the U.S. and other key markets. Finland-based Basware provides e-invoicing and P2P and has a North American business, Basware Inc., headquartered in Stamford, Connecticut. Verian, headquartered in Charlotte, North Carolina, offers cloud-based P2P solutions. Basware said Verian brings added e-procurement capabilities to Basware’s portfolio. Verian’s existing customers will also be able to take advantage of the Basware Commerce Network.
Online freelancer platform Upwork is introducing a new service offering, Upwork Pro, a premium sourcing solution for mid-sized businesses. Upwork Pro will also be available to larger businesses that use the Upwork Enterprise suite. The launch of this offering represents yet another step by Upwork to engage mid-sized businesses and large enterprises and to meet their urgent need to source highly qualified talent. These businesses, while strapped for talent, have not yet tapped into a burgeoning, alternative source of skilled talent: online freelancers in many locations across the world.