Beeline, IQNavigator & GTCR: Transaction/Valuation Analysis, Future Product/Technology Considerations and SWOT Analysis

Earlier Tuesday GTCR, a Chicago-based private equity firm, announced it had acquired vendor management system (VMS) and freelancer management system (FMS) provider Beeline from Adecco. Spend Matters’ initial coverage of the transaction provides background on the merger of Beeline and IQNavigator.

The combination of the two providers creates a VMS powerhouse, both by services procurement network volume and revenue, making GTCR — as well as Adecco and the management of both organizations — the owner of the largest independent services procurement technology provider by a significant margin. It also marks a potential (and even near-term) takeover candidate by Oracle, another solutions provider, or even a firm such as Accenture — or as an IPO candidate as early as 2017. We explore these and other considerations in this research brief, as well as the material potential upside for Adecco, owing to the new capitalization structure of the combined entity for GTCR/Adecco, based on our analysis of the transaction and benchmark valuation considerations.

This Spend Matters PRO analysis provides a more detailed look inside the transaction and what it means for GTCR, Adecco and Beeline/IQNavigator, including potential exit options and how the combination could change some of the core dynamics of the contingent workforce and services procurement market. It also provides a SWOT analysis to illustrate the comparative position of the merged Beeline and IQNavigator in the VMS and broader services procurement market, as well as a product/technology outlook. Subsequent research briefs will provide customer, prospective customer and partner (MSP) analysis of the transaction and the relative combined technology capabilities of the merged organization.