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22 September 2013 | Will Green
Procurement outsourcing firm Xchanging has purchased e-sourcing company MarketMaker4 (MM4) in a $22 million (£13.7 million) deal.
The two firms already have a commercial relationship, but the acquisition will allow Xchanging to enter the e-sourcing market using MM4’s online auction and negotiation technology.
Ed Cross, executive director of Xchanging Procurement Services (XPS), said: “This acquisition, based on an existing commercial relationship, opens up significant opportunities for XPS to expand its service and product offering into a new market while expanding both MM4 and XPS’ customer base and market opportunity.”
MM4, founded in 2011, has a customer base of 35 companies in countries including the US, China and the UK, across a range of sectors but particularly manufacturing and retail.
Chirag Shah, MM4 co-founder and chairman, said: “In the space of only a few years, MM4 has become well established in the corporate procurement market, particularly in the US.
“Being part of Xchanging, who first came to us as a customer, will provide the opportunity and the resources to accelerate our growth and allow MM4 to assume a leadership role in the spend management sector.”