Procurement spend managing software provider JAGGAER made a sudden acquisition announcement today, indicating plans to acquire rival procurement technology provider BravoSolution for an undisclosed sum.
According to the announcement, the acquisition will position JAGGAER as a rather significant independent best-of-breed procurement technology provider with upwards of over 1850 customers connected on a network of 3.7 million suppliers in 70 countries. Collectively, the combined entities will provide presence in a number of industrial verticals to include consumer products, construction, healthcare, life sciences, manufacturing, public sector, oil & gas, retail, and transportation.
This is the second significant acquisition made this year. In June, JAGGAER, (formerly known as SciQuest), merged with European-based POOL4TOOL, a specialized direct procurement technology provider. The merger was noted as a strategy to provide a global footprint of support for both indirect and direct procurement spend processes, and allow the combined entity to execute on a vision of a complete Cloud-based digital procurement platform. Earlier this year, JAGGAER had previously announced its intention to provide deeper vertical industry support.
Within today’s announcement is a statement from BravoSoultion CEO Jim Wetekamp characterizing JAGGAER as a bold company on an aggressive growth path. That seems to be an understatement at this point.
The open question is whether these moves reflect bold efforts toward customer acquisition and market consolidation or a broader strategy reflecting an all-encompassing Cloud-based procurement platform. BravoSolution had been assembling its own collection of acquired technology providers and there are open questions as to whether all such capabilities have yet come together in a singular platform offering. Today’s announcement adds additional speculation as to the overall integration timetable.
Supply Chain Matters is reserving any further comment or advisories to existing customers for both providers until such time that we receive a detailed briefing related to strategy and plans.
The one obvious takeaway from tonight’s announcement is the marked increase in supply chain technology M&A activity that has occurred this year in the B2B platform area.
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