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5 September 2013 | Will Green
E-procurement software provider SciQuest has bought competitor CombineNet in a $43 million (£27.5 million) deal.
SciQuest said it acquired CombineNet because the company’s software represents “the best solution in the advanced sourcing arena”.
Both firms provide cloud-based business automation systems for spend management, but CombineNet’s proprietary technology “optimises and evaluates complicated vendor bids and proposals” and allows scenarios to be run balancing facts including cost, risk, timing and value. It is primarily designed for Forbes Global 2000 companies.
SciQuest said the deal would give the firm a tool that improves decisions for spend categories “that are typically beyond the capabilities of traditional e-sourcing software” and allow it to “expand into the commercial sector”.
Stephen Wiehe, president and CEO of SciQuest, said: “Due to the constraints of traditional sourcing software, many companies are forced to split complex sourcing events into smaller, isolated components or utilise error-prone, manually intensive processes. These ad hoc approaches lead to suboptimal results, failing to capture the full amount of potential savings.
“We expect to capitalise on the demand for CombineNet’s leading solution in both the commercial market and our franchise markets.”
SciQuest’s customers cover the health, telecoms and construction sectors, among others, and include the University of Montana and Eastman Chemical.
CombineNet has around 100 customers globally covering the retail, consumer packaged goods, restaurant and food and beverage sectors. These include Pepsico, Coca-Cola, Kellogg's and Johnson and Johnson.
This deal is the latest in a series of high profile acquisitions in the e-procurement sector, including IBM's purchase of Emptoris and SAP's acquisition of Ariba.