Coupa Acquires Simeno – Swiss Catalogue Specialists Join Rapidly Growing Firm

Yesterday Coupa, the leading spend and procurement cloud software firm, announced that they are acquiring privately owned Simeno Holding AG, a leader in cross-catalogue search and advanced catalogue management. Here is an extract from the Coupa press release.

“Simeno creates localized content from third-party supplier sites to power cross-catalog searches, including content from many of the leading B2B marketplaces. Coupa plans to grow its Open Buy Program with the addition of the marketplaces to deliver a best-in-class cross-catalog search capability that is competitively distinguished. The acquisition also increases Coupa’s local presence in key German and Swiss markets”.

To be honest, we haven’t come across Simeno previously. Glassdoor says they have between 50-200 employees; and there are 43 on LinkedIn which fits with a firm somewhere near the lower end of the Glassdoor range perhaps. So not huge; but not insubstantial. (We’d except a software firm with 50 staff to be turning over maybe $5, I guess). More from the press release;

“Based in Basel, Switzerland with offices in Germany and the United States, Simeno is used by some of the world’s largest organizations running SAP SRM, SAP PM, SAP MM, Oracle iProcure, and more. The solution provides a powerful shopping “front-end” capability for these systems to augment catalog search and management”.

It is hard to  be too insightful without knowing much about the product. But with Jaegger recently acquiring Pool4Tool (a well-regarded market leading catalogue product) and Amazon threatening the B2B world with the Amazon Business proposition, this looks like Coupa indicating that they won’t stand still while others improve their offerings. This is about strengthening one of the important areas in that overall procurement solutions landscape – helping end users find what they want across multiple  potential suppliers and supplier catalogues.

Before this latest announcement, last week Coupa also announced their 3rd quarter results. Revenues grew very impressively to $47.3 million, up 33.6% on last year, but the firm still loses money -  “GAAP operating loss was $11.2 million, compared to a loss of $5.5 million for the same period last year”. But  there are so many different ways of reporting profit and loss – GAAP, non GAAP, operating loss, net loss, and so on, I am not sure I really understand it. But Coupa is still losing money, although less than generally expected, and break-even looks not too far away. And while growth runs at this very impressive level, profit can take a back seat as far as investors are concerned.

The share price dipped around the results but has recovered since, so it appears that the results were broadly as expected. And with this latest acquisition, Coupa is demonstrating again just what a force the firm has become in the procurement software world in just a few short years!

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