SAP acquires Fieldglass (just like Jason Busch predicted…)

My US colleague Jason Busch has been predicting acquisitions in the VMS space (Vendor Management Systems, software that helps firms manage contingent labour and related services spend) for some time, so you can either argue that he is a true prophet and seer, or that eventually he had to be right..! But he was pretty accurate: as he wrote just a few months ago:

Spend Matters has argued for some time that Ariba needed Fieldglass’ technology and MSP relationships to assume a services procurement leadership position, especially in the contingent area.”

Well, it has come to pass.

Today, SAP, who bought Ariba as well of course, announced the acquisition of Fieldglass, the leading pure software player in that space, and a firm we wrote about not long ago in terms of their European expansion. They're still probably better known in the US, but as we commented then, they have developed an increasingly strong presence this side of the Atlantic too. Fieldglass has 350 employees, has deployments in 100 countries and supports 16 languages, with a very blue-chip client base.

SAP have not disclosed the price, but Spend Matters believes it represents over 10x trailing revenues, and that Fieldglass last year turned over something over $50 million. Fieldglass say that they will continue to run very independently -

"There will be no change in our management team, our employee base or our day-to-day operations. Fieldglass will continue to build out its global team and operations with the added benefit of SAP’s resources and expertise. Fieldglass will retain its identity and continue to operate independently as a SAP company in their cloud line".

But of course there must and will be significant synergies with the SAP and Ariba product range, customer base and so on. We'll get into those issues in the near future I'm sure. Jason and the US team have already provided detailed coverage on our US site, so if you're interested, I suggest strongly you get over there (link here) and take a look - already, there's a lot of great insight and useful commentary to read there.

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