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LONDON, September 20, 2013 /PRNewswire/ --
Xchanging plc, the business process, procurement and technology services provider, today announces that its subsidiary, Xchanging Inc. has acquired MarketMaker4 (MM4), an e-Sourcing technology company based in the USA, for a potential total consideration of up to $22mn, subject to certain performance criteria.
MM4 brings to Xchanging's Procurement business a proprietary Software-as-a-Service technology platform providing industry-agnostic procurement e-Sourcing, business intelligence and dedicated customer support (MarketMaking1). The acquisition expands the breadth of procurement services Xchanging offers, as well as contributing to the company's technology-enablement strategy.
This announcement follows a number of recent new customer wins for Xchanging's Procurement business, with several for the US business specifically, helping to consolidate further the company's position as the world's 3rd largest procurement provider2.
MM4 will continue to be marketed under the same name in order to leverage its well-established position in the e-Sourcing market. This will support Xchanging's strategic global growth strategy by extending its presence in the USA, a region which has significant growth opportunities for the procurement business, whilst also creating business development opportunities for Xchanging's existing procurement products and services.
Ed Cross, Executive Director, Xchanging Procurement Services, commented: "This acquisition, based on an existing commercial relationship, opens up significant opportunities for Xchanging Procurement Services (XPS) to expand its service and product offering into a new market (e-Sourcing) whilst expanding both MM4 and XPS' customer base and market opportunity."
MM4 has an existing customer base of over 35 companies and growing, with clients in countries including the USA, Canada, Mexico, China and the UK. Customers are spread across a wide range of industries, with a particular focus on the manufacturing and retail sectors. Headquartered in Chicago, with further offices in London and Dubai, MM4 was founded in 2011 by Chirag Shah, Dave Bowen and Alan Buxton. They will remain as shareholding directors with the business, bringing additional specialist business development expertise to Xchanging.
Ed Cross, Executive Director, Xchanging Procurement Services, continued: "The MM4 solution, already utilised in XPS, has a number of distinct features that many customers have already taken advantage of, which alone can bring very real advantage to procurement practitioners. Coupling this with XPS' extensive outsourcing service globally and underlying technology solutions will ensure that the combined business continues to meet the evolving requirements of the growing procurement outsourcing marketplace successfully."
Ken Lever, Xchanging Chief Executive, commented: "I am very pleased to announce the acquisition of MM4. This is the kind of 'bolt-on technology' acquisition that fits perfectly with our strategy, bringing higher value and differentiation to our offerings. Following a number of recent contract wins in the US market, this acquisition also helps us further build our position in this important market."
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."
Notes to editors:
1More information on MM4's MarketMaking solution is available here: http://www.mm4.com/marketmaking.php
2Everest: Procurement Outsourcing (PO) - Annual Report 2013: Expertise and Technology Driving Growth
What we do
Xchanging brings innovation, thought leadership and passion to its customers' businesses so as to enhance performance and value. Our values are embedded into everything we do.
What we want to be
Xchanging wants to be regarded as the best provider in its chosen markets by delivering services that are recognised for outstanding quality, reliability and innovation.
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