Fieldglass Content

VMS and Services Procurement Acquisition Watch: Fieldglass, IQNavigator, Beeline?

Yesterday, we featured an in-depth analysis of why we believe with 90% certainty that at least one of the largest vendor management system (VMS) providers such as Fieldglass, IQNavigator or Beeline will be acquired in the next 12 months. Thinking about investors and potential suitors, there are a range of converging reasons why the timing is right for a transaction. Among others areas, we note that “fund timing” could be right given that the two largest VMS providers are currently owned by private equity firms.

M&A Watch: Which Top VMS Will Be Acquired in The Next 12 Months? [PRO]

Services procurement management and categories are increasingly getting intertwined with regular procurement operations and oversight. Year-by-year, procurement is gaining influence over a wide variety of services spending areas, from basic contingent labor to complex business process outsourcing (BPO) areas – not to mention a large number of categories in between. Yet best-of-breed contingent and SOW – as opposed to specialized category specific – suite solutions for services procurement such as Fieldglass, IQNavigator, Beeline and Provade have long remained independent of suite procurement specialists and ERP providers, which have the dominant ear of procurement senior management outside of the services area. This is likely to change for a variety of reasons in the coming years, one of which is our hypothesis that SAP (and possibly IBM or Oracle) will acquire one of the top VMS providers, even paying a healthy premium (and market valuation) to do so. We believe with near certainty (90% probability) that at least one transaction will happen in the next 12 months.