BravoSolution Acquires Puridiom – More Analysis

Yesterday, BravoSolution announced the acquisition of Puridiom, a US-based procure-to-pay technology provider. Both firms are privately owned, so we don’t know the full financial details. In 2015, Bravo reported in the order of €80 million in global revenue and the addition of “80 new customers worldwide.” Puridiom’s past and current customers include Mutual of America, Hershey Entertainment & Resorts, Western & Southern Financial Group and Kroger, according to web sources. There is clearly some public (government) sector business in there too, looking at the firm’s website. But our colleagues in Spend Matters US reckon that that Puridiom has less than $10 million in annual revenue.

So that’s not a huge acquisition in revenue or profit enhancement terms but it is a strategically important one for BravoSolution and significant for the industry. As our esteemed colleagues in Spend Matters US explained;

“The acquisition is significant for the procurement technology industry in that it marks yet another vendor that previously targeted one side of the source-to-contract (S2C) or P2P continuum moving to deliver a full suite offering. Given that BravoSolution competitors have committed to the full suite path for many quarters (and in some cases over a decade), the news suggests the trend shows no signs of abating”.

Previously BravoSolution has partnered with both Basware and Verian – acquired themselves by Basware earlier this year. BravoSolution told Spend Matters that such partners “will continue to play a vital role for us and our customers and depending upon customer needs provide a number of advantages including increased support for customer preference as it relates to prime relationships with vendors that the customer knows and trusts”.  But clearly, in many competitive situations, Bravo will now be offering the full range of source-to-pay capability themselves.

There is a lot more interesting analysis in the Spend Matters US article here – do read it if you are at all interested in procurement technology. It includes a Q&A with Jim Wetekamp, CEO of BravoSolution. Here is just a sample of that:

Spend Matters: What are customers asking for? Did this factor into the decision?

BravoSolution: Customer demand for all-in-one source-to-pay solutions has clearly been increasing. While there is still a large section of the market that lends itself toward a best-of-breed approach where they may select different offerings across the procurement activities based upon user needs or industry requirements, which we have and will continue to serve through our valuable partner relationships, we took this step to better serve those clients who prefer a single solution/relationship and will continue investing in this direction.

The universe of providers with a pretty global footprint who can offer fully functioned source-to-pay suites is fairly small and likely to consolidate further. In time, a handful will dominate the global marketplace in large corporates (and public sector bodies). Hence why this is an important acquisition - even if not an apparently huge buy in financial terms – because it signifies that BravoSolution will strive very hard to be part of that handful.

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