Jaggaer Acquires BravoSolution – Forms Procurement Software Giant

Jaggaer announced yesterday that it will acquire procurement suite provider BravoSolution for an undisclosed sum from Italmobiliare S.p.A., subject to customary closing conditions. The combination would make Jaggaer the “largest independent, vertical spend management solution provider in the world,” the company said in a press release, with more than 1,850 customers connected to 3.7 million suppliers in 70 countries.

News of the planned deal comes nearly six months after Jaggaer’s acquisition of Pool4Tool, a provider of sourcing and purchasing solutions for direct materials procurement. This latest move would make Jaggaer, which rebranded from SciQuest in February, the No. 2 player to SAP Ariba in the procurement technology market by revenue. (Coupa must be getting close …)

Over the past few years, SciQuest acquired several firms including CombineNet and Spend Radar to build a significant business. However, the centre of gravity has remained very much on the US side of the Atlantic. That must be one of the big attractions of BravoSolution, a firm that has a decent US presence but is very strong in Europe, from the Nordics to Italy, and increasingly powerful in the middle east (through its Tejari joint venture), with a decent presence in Australasia as well.

Since the changes at the parent company level a year or so ago, it has been clear that something was likely to happen with BravoSolution – a float or an acquisition – and Jaggaer with their serious private equity backing are not a surprising acquirer.

Here at Spend Matters UK/Europe, we have mixed feelings today. Bravo has been a great firm to work with for the past seven years, and we’ve loved working with their people, some of whom are friends as much as “clients”.  So, there is some sadness here, but let’s hope this is good news for everyone - customers, staff, and investors. Certainly, Jaggaer has the capability to invest and be a very strong participant in this market globally, so we have our fingers crossed!  

There is more here at Spend Matters US and we will have more commentary shortly as well.

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