Two Rumored Vendor Deals Going Down

June 8, 2007 10:19 AM | Categories: Spend Management

There are two rumored deals going down at the moment. I've triangulated from multiple sources close to each -- though none on the inside, so discount this as you wish -- that two companies that share at least one letter in common in their title -- though little else --- are involved in separate talks (unrelated to each other). I'm not sure what stage the negotiations are at, but the chatter is certainly there. These might not be acquisitions, but given the gossip circling around, they're certainly not run of the mill customer deals if they prove to be true. Hint: one vendor is on the rise (and has been since its inception), and one has been down and out for quite some time, though has been trying its best to right the ship.

- Jason Busch

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How Perfect is that rumor?

# Posted By Interested Vendor | 6/8/07 8:30 AM

If true, I'm guessing that one's a SLaaSher deal (AKA: avoid liquidation at all cost) and the other is because of investor shortsightedness and impatience. But aren't we all ...

PS: Your Captcha text needs to be murdered

# Posted By Patrick Bateman | 6/8/07 9:11 AM

Thanks for the scoop

Consolidation in this industry would be great for everyones margins!

# Posted By vert watcher | 6/8/07 9:54 AM

Might be of interest to confirm what you say: the rumor reached Europe...

# Posted By Jean-Philippe Massin | 6/8/07 12:00 PM

Rumor is that "X-rocuri" is selling out for just shy of $100 million. Not sure if this is true or not, but that's the word on the street. That would be something like a 3x-3.5x multiple on revenue -- hardly interesting given their large backlog (which is probably bigger than that). Maybe an earn-out component (perhaps someone learned from what they did themselves to RT ... ???) Regardless, it is a large multiple on earnings, I suspect.

# Posted By SaaS Valuations Stink | 6/8/07 12:08 PM

I’ll skip on commenting on which letter Jason is referring to in his rumor posting, but in Europe it appears as if cc-hubwoo who have pushed the panic button and bought Intersources, a small European sourcing consulting company (and Spend Matters sponsor).

More on that deal can be found here in cc-hubwoos press release: http://www.cc-hubwoo.com/pdf/news/07_06_11_en.pdf

I believe that due it is due to underperformance that cc-hubwoo once again forced to acquire a company in order to grow. With the Intersources acquisition cc-hubwoo is complementing their solution portfolio by adding competence in sourcing, but most likely are they trying to get people onboard so that they can communicate with senior purchasing people. Faced with the competition of some of the more successful challengers in the SRM field (Ariba, Quadrem and IBX) cc-hubwoo is forced to act – which explains the fact that cc-hubwoo is paying an awfully high price for the small consulting company.

# Posted By Toby | 6/11/07 5:33 AM

Intesource is not Intersources! Intersources is broad, pan-European (and services based). Intersource, the Spend Matters sponsor, is based in North America, offers software, services and related capabilities specifically for grocery and retail.

# Posted By Jason Busch | 6/11/07 6:04 AM

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