Oversight Systems — TCV acquisition, spend compliance intro and sector musings [Nexus]

Mergers and Acquisition News in procurement industry

On Wednesday, Oversight Systems announced that TCV, a private equity firm, had acquired a majority stake in the provider of spend compliance solutions from Luminate, the previous investor.

Oversight competes in the spend compliance market, a clever overlay that sits alongside — or on top of — source-to-pay process and data flows, primarily for indirect and expense-based spend. It augments the capabilities of spend management and T&E providers, although Coupa does have home-grown capabilities in this area as well.

Oversight largely grew under the radar in recent years, and it is not well known in the procurement and finance technology sector. But along with Appzen, Oversight has carved out a leadership position in this market (although there are material differences between the two providers).

While both providers are worthy of consideration for organizations looking to complement existing procure-to-pay and T&E investments, we’ll leave additional practitioner analysis to a PRO update in the months to come, and today will focus our Spend Matters Nexus coverage on explaining this market segment and how Oversight Systems slots into it. We’ll start with a back-of-the-napkin estimate on the transaction.

Related coverage:

CORONAVIRUS RESPONSE: Fraud, P2P and Vendor Management Safeguards — Protecting cash and rapidly vetting suppliers in a crisis 

Oversight Systems: Vendor Analysis (Part 1) — Background and Solution Overview

Oversight Systems: Vendor Analysis (Part 2) – Product Strengths and Weaknesses

Oversight Systems: Vendor Analysis (Part 3) — Competitive and Summary Analysis

Jason Busch is Managing Partner of Azul Partners’ Investor Advisory Group. He works with sponsors, CEOs and boards on data-driven due diligence, M&A and business strategy. Jason is also the lead author of Spend Matters Nexus, a private newsletter.

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