Tradeshift Buys IBX From Cap Gemini

Last night, Tradeshift announced the acquisition of IBX Business Services from giant French IT firm Cap Gemini.

There is talk of a “new long-term partnership” between the firms in the procurement space, so Cap Gemini is not washing its hands of the sector completely. The new combination will certainly be a powerful force in the procurement and business commerce world, as the press release says;

"The combination of Tradeshift and IBX will create the world’s largest business commerce platform connecting nearly 1.5 million businesses and more than 500 global enterprise customers that have access to the largest supply-chain app ecosystem. With the acquisition, Tradeshift’s business commerce platform is projected to see an increase in transacted value to more than half a trillion dollars over the next 12 months, which includes recent growth in China and other new markets".

The IBX Group itself was a Stockholm based firm acquired by Cap in 2010, so with Tradeshift’s Danish origins, there is perhaps an interesting cultural dynamic to this as well. Tradeshift has been seen as a disruptor, a vigorous and challenging presence in the market, whereas IBX and Cap are much more traditional, so this could be a very good fit, each bringing different qualities to the table. On the other hand, the cultures might clash – without knowing all the key people well, we can’t really judge. But on paper at least, this looks like a serious challenger to Ariba, Coupa, Basware and others.

You can read a lot more from our colleagues at Spend Matters US here, including more discussion of the likely value of the deal and around the technical details of each firm’s products - and we will come back to the deal next week.

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