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Technology analyst Magnus Bergfors joins Spend Matters’ team from Gartner

Noted technology analyst Magnus Bergfors joins Spend Matters today after several years at Gartner, bringing a deep background in strategic sourcing, procure-to-pay and other procurement software categories.

"I'm thrilled that Magnus will be joining us,” said Jason Busch, the founder of Spend Matters, whose analysts provide solution intelligence on procurement technology. “Not only is he deeply in touch with the needs of procurement organizations, Magnus will bring a global perspective on technology analysis, selection and best-practices to our audience in North America, Europe and around the world."

Magnus lives in Sweden and will increase Spend Matters’ coverage of the industry in Europe.

“I’m incredibly excited to join the Spend Matters team,” he said. “The balance of Spend Matters being large enough to have a critical mass of resources and world-leading expertise combined with the agility of a smaller organization allows for some really exciting opportunities for innovative research and to help our clients make the right choices.”

First Take Analysis: Workday’s Acquisition of Scout RFP (Part 1: Scout Background, Strengths/Weaknesses, Deal Rationale)

Workday, a provider of finance and human resources solutions, has announced its intent to acquire Scout RFP for a cool $540 million in cash. For those with a long-time background in the industry, this might at first seem like a somewhat mind-boggling sum for a sourcing provider, bringing back memories of Ariba buying Trading Dynamics in the early B2B sourcing era.

But things are a bit different this time, as Scout is bringing rapid growth, material customer numbers (240+ customers) and material ARR growth to the table (we’ll do a back-of-the-napkin analysis of ARR and revenue contribution later in this series). Moreover, it’s an innocuous way for Workday to target procurement without having to go after “the hard stuff” (another key theme we’ll explore).

So beyond the somewhat shocking number at first, the deal can begin to make sense if you peel the transaction onion. So let’s begin.

As we kick off our analysis in this Spend Matters Nexus series analyzing the transaction, we’ll focus this first brief on providing a quick overview of Scout, graphically explain where it fits in the source-to-pay landscape, explore the provider’s strengths and weaknesses, and then begin to delve into the rationale for the deal from the Workday vantage point.

Later this week, we’ll offer an analysis of the M&A and deal components of the transaction (e.g., estimated multiples), provide deeper insight into the integrations/touchpoints between Workday and Scout, and share an analysis of the impact on the competitive landscape (for competitive ERPs, source-to-pay suites and independent sourcing providers).



Jason Busch serves as Managing Director of Spend Matters Nexus, a membership, research and advisory organization serving technology acquirers (private equity, corporate development, etc.) and CEOs in the procurement and finance solutions marketplace (including contract management, B2B marketplaces/connectivity, indirect procurement, services procurement, direct procurement, commodity management, payment, trade financing, GRC/third-party management and related adjacent sectors).

Workday to acquire Scout RFP for $540 million in cash

Earlier this afternoon, Workday announced its intent to acquire Scout RFP, a sourcing technology provider, for $540 million in cash. Scout RFP was a Workday Ventures portfolio company and Workday partner previously. In a Workday blog, the HR and ERP provider notes that Scout RFP’s “more than 160 employees across North America and Europe will be joining Workday.”

In the press release announcing the transaction, Workday suggests that “with Scout RFP, Workday will provide organizations a comprehensive source-to-pay solution with a best-in-class strategic sourcing offering to transform the procurement organization and deliver better business outcomes, including reduction in spend, greater policy compliance, and maximized engagement across key stakeholders.”

More Trump tariffs to be levied on goods from China — starting Sept. 1

In a tweet Thursday that rattled stocks, the Trump administration announced that, starting Sept. 1, 10% in tariffs will be levied against $300 billion in more goods that are made in China for companies that import them into the United States. The companies pay the tariffs, and the extra expense typically leads to higher prices for U.S. consumers. The Dow had been up about 300 points, but on the news, it fell 200 points.

Jaggaer sells majority stake to private equity firm Cinven

procurement

The procurement suite provider Jaggaer announced Monday that the private equity firm Cinven is buying a majority stake in Jaggaer, which will continue to focus on its unified Jaggaer ONE spend management offering and will look to expand into new markets. Jaggaer said no management changes were planned.

Fiverr IPO launches at $21, and share price nearly doubles

procurement

Fiverr (NYSE: FVRR), the online marketplace for digital creative services, priced its 5.3 million IPO shares Wednesday night at $21 per, raising about $111 million in new funding. On Thursday morning, shares began trading at $26, but when the market closed in the afternoon, Fiverr’s share price had risen to $39.96 (nearly doubling). Based on the closing price per share and an estimated 31 million shares outstanding, Fiverr’s market cap would be about $1.2 billion, or 16 times revenue.

We will provide further analytic post-IPO coverage soon. In the meantime, check out our recent PRO series: Fiverr, the Online Services Marketplace, Is Going Public: What You Need to Know — Part 1 and Part 2.

New Trump Tariffs Are a Top Issue for Supply Chains, Managers of ISM Economic Reports Say

With the Trump administration’s latest tariff increase on goods from China set to start Friday, the managers of ISM’s economic indexes spent part of their Wednesday webinar addressing concerns about the new levy’s effect on the economy, procurement and supply chains.

“I was hoping we wouldn’t still be talking about (tariffs), but alas we still are,” said Timothy Fiore, chair of the Institute for Supply Management’s Manufacturing Business Survey Committee, which puts out the Production Manufacturing Index (PMI) on the first of every month.

“If we’d had this conversation two weeks ago, I would have been more optimistic,” he said. “With the news this week, I don’t know that I have an opinion. But people who know and that I’ve talked to expect the tariffs to go into effect Friday.”

Breaking: U.S. Grounds Boeing 737 MAX Jets, Trump Says

The U.S. has grounded all Boeing 737 MAX 8 and MAX 9 airliners, “effective immediately,” President Donald Trump said Wednesday, according to the Associated Press. And in a statement Wednesday, Chicago-based Boeing said it has confidence in the planes but recommended to the FAA “the temporary suspension of operations” of its global fleet of 737 MAX jets, which is 371 planes.

Another Payment Provider Gets Acquired: Fleetcor to Buy Nvoicepay (Rapid Analysis)

invoice

The intersection between procurement, accounts payable automation, payment technologies and card providers continued to converge today as Fleetcor announced it was acquiring Nvoicepay. The transaction marks yet another example of card-based payment providers getting closer to the world of buyer-driven procure-to-pay — and of course, the vendor corollary, accounts receivable — given the opportunity for supplier-driven payment acceleration.

Certify, Chrome River to Merge Their T&E, Invoice Management Prowess

Certify and Chrome River Technologies, two travel & expense providers who also offer invoice management software, will merge in a deal that’s valued at over $1 billion, a statement Tuesday said. It also realigns the market and makes the investor in the transaction an even bigger player in this sector, two Spend Matters' analysts said. Portland, Maine-based Certify and L.A.-based Chrome River initially will operate separately but will collaborate on investing in technology like artificial intelligence, machine learning, analytics and reporting, the announcement said.

Updated: Basware-Tradeshift Talks for M&A Fall Through

Global Risk Management Solutions (GRMS)

Procure-to-pay provider Basware on Thursday announced that Tradeshift’s talks to buy it have been called off. In November, Finland-based Basware confirmed that it was in talks to be acquired, but it didn’t disclose the other company. Later, reports indicated that Tradeshift, a U.S.-based provider of solutions for supply chain payments and marketplaces, was seeking to buy Basware.

Kraft Heinz Has Procurement Problem, Takes $25 Million Charge after SEC Inquiry, WSJ reports

Kraft Heinz’s procurement division had an accounting problem that led to a Securities and Exchange Commission investigation and a $25 million charge in the fourth quarter, the Wall Street Journal reports. The amount pales in comparison to the company’s other bad news Thursday — when it said it wrote down the value of its Kraft and Oscar Mayer brands by $15.4 billion dollars and it slashed dividends, sending the stock down 20% at one point, the Journal reports.