Breaking News! McKinsey acquires spend analytics firm Orpheus GmbH

In a press release just published, global management consulting firm McKinsey & Company announces its acquisition of Orpheus GmbH, a Germany-founded leading provider of spend analytics technology.

Orpheus’ software helps organisations 'optimise their external expenditure throughout their operations by analysing purchasing data streams for value capture opportunities and measuring realised procurement impact.' The move gives McKinsey a new offering to clients: Spend Intelligence by McKinsey. The service will enable spend  transparency, spend and cost analytics, and value capture management, the press release says.

Orpheus has a robust set of clients, and a reputation for delivering quality and value in solution areas such as automated data extraction, AI-enabled spend categorisation and spend and category prescriptive and predictive
analytics, including software agents (BOTs) and procurement impact tracking.

"Spend Intelligence by McKinsey will be a core element of the digitally-enabled procurement function of the future, involved in all business value chain activities from product development to distribution, and playing a strategic role in managing budgets and costs, anticipating and mitigating supply risk, and driving compliance," it says.

Jörg Dittrich, Orpheus CEO, said: “Orpheus is excited about joining forces with McKinsey. Together we can create a much richer solution and service offering that – with a single focus on driving impact for clients – is truly something new and differentiated in the space.”

We don't yet know the details of the deal, or the implications for clients, but our analysts have looked at the companies and have done an analysis here.

On today's news, our GM Jenny Draper said:

"We’re seeing more and more that consulting organisations are interested in making tech acquisitions, particularly with specialist, niche tech solutions within the S2P ecosystem, like Orpheus IT.”

Read more here.

Read also:

Our analysts' Orpheus Vendor Snapshot here, here, and here.

Our SolutionMap Q4 2019 scoring summaries for analytics here.

And our Spend and Procurement Analytics Solution Rankings Q4 2019, here.

 

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