Xchanging has announced it has agreed to buy spend analytics firm Spikes Cavell Analytic Ltd (SCAL) in a deal worth up to $11.5 million (£7.5 million).
Under the terms of the deal, $6.75 million (£4.4 million) will be paid initially, with an additional $4.75 (£3.1 million) available over the next two years if performance targets are met.
SCAL is a UK company providing spend analytics technology and services mainly to public sector institutions in the UK and higher education bodies in the US.
Xchanging said previously it had used third parties to provide spend analytics and the acquisition was part of a strategy to offer an “end-to-end procurement technology suite”.
Chirag Shah, executive director of Xchanging Procurement, said: “Spend analytics is one of the key components of the source-to-pay lifecycle, which we have previously accessed through third party providers. But our business has a strategic aim to offer an all-encompassing end-to-end procurement technology suite, which is one of the reasons we’re making this exciting acquisition.”
Luke Spikes, CEO at SCAL, said: “The SCAL team has spent over 20 years transforming raw data into actionable intelligence to enable organisations to make better business decisions.”
The deal is expected to be completed by the end of March 2015.