SciQuest acquires Upside, leading contract management software provider

Last night, SciQuest, NASDAQ quoted procure to pay software provider, announced it is acquiring Upside in an agreed purchase. Upside are leaders in contract management software - including contract creation, compliance, performance management.

Both firms are heavily US centric, and I can't say I have personal experience of either's products. But Jason Busch at Spend Matters US rates both highly in their respective areas. Here is Jason's first comment on the deal - do read it if you're interested, and there will be more to follow.

In summary, he sees it as a potentially smart deal for SciQuest, giving them relevant and strong additional capability, at what looks like a very reasonable price compared to some other recent transactions we could mention (SciQuest appear to be paying less than 2x revenues).

Here are Jason's conclusions - but read his whole piece for more insight.

"But if you must ask for three summary bullets within an hour of the news hitting, here's our quick take:

  • The deal gives SciQuest a best-in-class contract management solution to incorporate into its suite (although given that Upside is built on .Net and SciQuest is built on Java, some platform reconciliation will be required in the integrated roadmap, which is something SciQuest is already focused on following its AECSoft acquisition) and upsell to customers (and vice versa)
  • SciQuest will be able to focus on SaaS sales of Upside, but will also have an installed software product as well (for those companies that demand a customized instance of contract management behind the firewall)
  • The valuation (at what looks like less than 2X top line) appears low given recent industry deals and financings. SciQuest may have gotten a bargain here -- it seems so on first glance, looking at revenue-multiples -- but there is likely a further story that will come out on the investor's call in a few minutes".

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