3 February 2010 | Jake Kanter
Capgemini’s purchase of e-procurement firm IBX could give way to a wave of similar acquisitions, say the two companies.
The consultancy announced the acquisition of IBX yesterday and will use the Swedish company’s technology alongside its procurement outsourcing services.
Capgemini believes the acquisition makes it the first company to be able offer the complete “procurement as a service” package.
The two firms have been collaborating for the past year and David Poole (pictured), Capgemini’s head of business process outsourcing in the US, said clients were demanding a service that combined e-sourcing and outsourced purchasing. He expects the buyout to spark a trend in the market.
“I would be surprised if we didn’t see similar moves. Our competitors are likely to respond rapidly,” he told SM. “Where previously companies were purchasing technology and outsourcing independently, that discussion goes away. We are seeing a lot of interest from a number of clients.”
Leif Bohlin, chief executive of IBX, also anticipated a similar consolidation in the market. He added that customers were attracted to the service because they were searching for ways to cut costs.
Poole said the companies had just agreed the “biggest sourcing deal in the market” with an undisclosed client using the combined services, but was unable to provide any further details. Capgemini is expected to announce this deal in the near future.
Capgemini’s acquisition of IBX should be finalised by the end of the month, subject to clearance from anti-trust authorities. Both firms refused to disclose the financial terms of the deal.