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Analytics specialist Simfoni acquires EC Sourcing to bolster source-to-contract capabilities

01/10/2022 By and

The spend analytics and automation experts at Simfoni announced the acquisition of EC Sourcing, a provider with a source-to-contract solution (S2C) and notable decision-award optimization capabilities.

Both vendors are ranked in Spend Matters’ SolutionMap categories for their technology categories. Simfoni competes in the Spend and Procurement Analytics SolutionMap, where it received the top designation of Value Leader for all three market personas (SME, Mid and Large) in our Fall 2021 rankings. In our SolutionMap Sourcing rankings, EC Sourcing attained the Value Leader designation in three market areas: SME, Mid and Optimization. Simfoni is on our list of “50 Procurement Vendors to Watch,” and EC Sourcing is on our list of “50 Procurement Vendors to Know.”

Simfoni Chairman Chirag Shah said that combining the two vendors will service hundreds of enterprise customers worldwide and offer “capabilities that are unmatched by other vendors.”

“Spend analytics and e-sourcing technologies are like two sides of the same coin — they are an essential combination for leading procurement practitioners. Yet the market offers few best-of-breed, integrated solutions of this nature,” Shah said in a press release. “There are tremendous synergies between the two companies in addition to the product fit.”

He also lauded EC Sourcing’s products and leadership.

“Ron Emma and Andy Caetta are both proven procurement professionals that have used their domain expertise to build highly intuitive and feature-rich products that have positioned EC Sourcing as the standout leader in the Spend Matters SolutionMap and a ’50 to Know’ vendor in the Procurement Almanac,” Shah said. “I’m delighted to be joining forces with them to create a powerhouse in the source-to-contract segment.”

Emma, a co-Founder of EC Sourcing, looked back over the firm’s nearly 20 years — and at its future with Simfoni, founded in 2015.

“With Simfoni, we found a team that truly shared our view about the future of leveraging data to automate the strategic sourcing lifecycle, and have the complementary resources to enable us to build a dominant position in the S2C market,” Emma said. “I would like to take this opportunity to thank the EC Sourcing team for their dedication and commitment and of course our customers who have supported us over the years; we look forward to continuing to serve them with the same professionalism and an even greater selection of innovative products and services.”

Spend Matters Founder and CEO Jason Busch knows the vendors after years of tracking their progress, and he offered insights into what this combination of capabilities means for the procurement technology market.

“What is most curious to me about this acquisition is the unique pedigree of the Simfoni executive team in the strategic sourcing technology area — which multiple members of the team are expert in from previously leading tech firms in this segment,” Busch said. “Given this expertise and operating knowledge, combining Simfoni spend analytics, tail spend management and spend managed services with a top-performing strategic sourcing technology seems about as low a risk, high-upside combination as anyone could put together from an M&A perspective in the fast-growing procurement technology sector.”

In the coming days, look for more Spend Matters analysis of this deal, and read up on Spend Matters PRO analyst coverage on both vendors that goes back years: