2020 M&A and Procurement Investment Predictions: 10 Trends to Watch (Part 1) [Nexus]

M&A and investment activity in the procurement sector has started 2020 with a bang based on Coupa’s acquisition of Yapta and CVC’s $200 million investment in EcoVadis (which came on the heels of Workday’s buyout of Scout RFP in November). Spend Matters actively tracks over 600 procurement technology providers, of which more than 300 are featured and segmented by capability (suites and modules) in a recent PRO research brief and graphic (see below).

But we believe the actual number of providers — if we consider peripheral areas focused on category and market intelligence, analytics, services procurement and adjacent finance, supply chain, risk and supplier-related GRC applications that are still of interest to procurement organizations as the primary economic buyer — brings the list to over 1,000 different providers.

Many of these providers will raise capital or get acquired in 2020.

But what trends are driving acquisition and investor interest in the sector, and what types of transactions should we look for?

This Spend Matters Nexus brief provides an introductory analysis of sector M&A and investment predictions for 2020, exploring the first three of 10 trends we’re starting to spot:

* Trend 1: Competition grows between strategic and financial buyers (and those that fall somewhere in the middle).
* Trend 2: ERP and big tech get more active in the sector.
* Trend 3: Buyers and investors expand their definition of procurement technology.

Subsequent briefs in the series will cover additional trends as well flesh out some of the more important strategic and financial buyer (and investor) priorities on a more granular basis. Let’s get started!

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