With the acquisitions of B-pack, Hubwoo and SynerTrade, consolidation is accelerating in the e-purchase market. Market pressure and competitiveness are driving publishers to look for partners, to reach critical size and to have the resources to innovate.
The acquisitions of IBX (Capgemini), Emptoris (IBM) and, above all, Ariba (SAP), between 2010 and 2012, had already shaken the e-purchase solutions. Along with those of B-pack, Hubwoo and SynerTrade, in recent months, it has just experienced a new jolt. As a result, these operations led to the disappearance of two french historical specialists, B-pack and Hubwoo, who went under the American flag by joining Selectica and Perfect Commerce respectively. In compensation, the arrival of Digital Dimension (a subsidiary of the Econocom Group) on the purchasing management market, following the acquisition of 90% of SynerTrade's shares, creates a new hexagonal player of weight: 490 combined employees and an expected turnover of 120 million euros for the 2016 financial year. The other publishers, already under pressure from the newfound vitality ofAriba and the arrival of new entrants (start-ups, foreign publishers, etc.) should they fear this new competition?
The main question concerns SynerTrade. Since the launch of Accelerate, the latest version of its business suite, a year ago and the opening of new offices in Europe, the French-German-born publisher has been looking for partners to support its growth. Drawing on the resources of Digital Dimension, and more broadly those of Econocom, which has 8,500 employees in 19 countries, SynerTrade hopes to accelerate the deployment of its international offering. Its CEO, Eberhard Aust, who has retained his shares and his position at the head of the company, is also counting on the new shareholder to strengthen the e-procurement component of the suite and launch sectoral variations. "It will all depend on Econocom's strategy and its desire to invest in the company, as research and development and market-taking efforts represent significant costs," warns Gérard Dahan, EMEA managing director of Ivalua, SynerTrade's main French competitor.
Above all, as a digital services company, does Econocom know the business of e-shopping software and the relevance of SynerTrade's offering? The question arises all the more since neither Selectica, which would have been interested in the file for a time, nor Ivalua, potentially a candidate to strengthen its position in the French market and to strengthen itself in Germany, dared to engage. "SynerTrade, because of its positioning and product strategy, has not been a competitor for a few years now," said Martial Gérardin, Managing Director Europe of Perfect Commerce, for whom "this acquisition is not readable". By joining a service player, is SynerTrade not likely to face the same fate as IBX or Emptoris, diluted in a global offering combining services and software of all kinds? To the point of disappearing from radar.
As things stand, Econocom simply explains that SynerTrade was a "tremendous opportunity". "First of all, because the global market for saaS-mode e-purchase tools represents enormous potential," explains Bruno Grossi, the group's executive director, in charge of strategy, acquisitions and communications. "Secondly, because of SynerTrade's positioning: in terms of supply, with very complete coverage of the purchasing process, but also geographical presence, in line with Econocom's plan to become a "European company" and to strengthen its activities in several countries, particularly in Italy and Northern Europe." The manager added: "Of course, it all depended on the price. But in the end, we made a great deal." Understand: SynerTrade would not have been paid very much. Probably less than 7 million euros, according to Gérard Dahan, or much less.
The buybacks of B-pack and Hubwoo are to be put on another level. They are in fact pitting players already in the e-purchase market, who know the maturity of companies and their requirements in terms of tools in this field. And their only ambition is to reach a critical size and take advantage of synergies, to weigh on the market and to be able to progress faster. "To ensure its growth and sustainability, a software publisher must find sources of inspiration and funding. The Selectica, Iasta and B-pack merger bears the hallmark of this dual anchor," says Patrick Chabannes, who was recently recruited by the group as a solutions strategist. Established this summer, the new group now employs 170 people and expects sales of $35 million this year. The same is true for Hamp Wall, CEO of Perfect Commerce, which will reach 300 employees and a turnover of $50 million with Hubwoo: "The acquisition will support the company's growth in several key geographies, through highly complementary locations and customer portfolios." It also gives him the power of a business network, advanced features in the Purchasing management and a data center in Europe.
In the end, this consolidation, in an extremely dynamic market, is rather viewed with a good eye by most of the other players present on the French market. At least by those who specialize in a particular niche, who do not see any particular threats, or those who can exercise a balanced balance of power. It would even be a "tremendous opportunity" for Ivalua. "Whatever happens, these operations will take time to materialize, which will create a call for air on the market, as in the two or three years of floating that followed the takeover ofAriba Gérard Dahan assures us. But it is clear that if its international ambitions were to amplify because the demand for the product would exceed the borders of Central and North American Europe, the situation would change. "We too would have to think about bringing an investor into a small part of our capital," he concludes.