We Just Don’t Know How Good Public Procurement in the UK Really Is

Spend Matters UK/Europe founder and ex-MD, Peter Smith, revisits with a commentary on public sector procurement.  How effective is public sector procurement in the UK? That’s a really hard question to answer for a number of reasons. So much of what happens is invisible from the outside, and of course if you are sitting outside, you just get a sanitised view of what really is happening. The Government Commercial Function (GCF) and Organisation (GCO) have certainly taken some positive steps in terms of professionalisation of the function in the past couple of years under Gareth Rhys Williams. Recent work on the Outsourcing Playbook, training on contract management and an updated self-assessment process for procurement organisations all look pretty impressive too. But there are often two sides to the story. The handling of the Carillion collapse has been presented as a positive, in that services continued in most cases without too [...]

Jaggaer Deal: 5 Enterprise Value Creation Takeaways Learned From Shaping a Procurement Workhorse (Not Just a Unicorn) [PRO]

Last week, Jaggaer announced that Cinven, a European-based private equity firm, had acquired a majority stake in the provider. Various sources, including Bloomberg, place the enterprise value of the transaction, including debt, at $1.5 billion. But as in all private company valuations, it is important to exercise caution in reported numbers and even more so “unofficial” numbers, given the various minority ownership interests, debt, covenants and other considerations associated with such a transaction.

Regardless, we suspect that Accel-KKR, which previously held a majority stake and retains an ownership interest in Jaggaer — as well as Italmobiliare, the original owner of BravoSolution, and a near 10% owner in Jaggaer prior to Cinven’s investment — post transaction, materially increased the enterprise value of the combined SciQuest, BravoSolution and Pool4Tool assets that it brought together under the Jaggaer umbrella. This Spend Matters PRO and Nexus research brief quickly analyzes the state of Jaggaer post-Cinven investment and provides five takeaways for investors, CEOs, corporate development professionals and others curious about the synergies that Accel-KKR created.