IBM to Acquire Emptoris, a Supplier of Cloud-based Analytics for Procurement and Sourcing

Vendor says purchase fills out its Smarter Commerce portfolio with solutions for procurement officers and sourcing professionals.

January 4, 2012

D.H. Kass

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IBM Corp. said that it will acquire Emptoris Inc., a privately-held Burlington, MA-based provider of cloud-based and on-premise analytics software for procurement and supply chain management, in a move the vendor said fills out its Smarter Commerce platform.

Terms of the transaction were not disclosed. The companies said that they expect the deal, upon satisfactory regulatory review, to close in the first quarter 2012.

Emptoris sells a suite of sourcing, contract management, spend analysis, supplier lifecycle management, services procurement and telecom expense management solutions to enterprise-level businesses. Its 350 clients include technology giant Samsung America Inc., American Express, Boeing, Delta, Heinz, Kraft and United Healthcare.

IBM said that the acquisition broadens its Smarter Commerce offering because it enables the vendor to meet the sourcing needs of chief procurement officers in addition to other C-level executives.

“Adding Emptoris strengthens the comprehensive capabilities we deliver and enables IBM to meet the specific needs of chief procurement officers," said Craig Hayman, IBM general manager, Industry Solutions.

Patrick Quirk, Emptoris chief executive, said that the vendor’s products help customers to improve sourcing and control spending.

"Procurement officers need to manage the full engagement, integrating suppliers with key internal systems and have the capability and visibility to manage compliance and mitigate supply risk,” he said. “That is the value we bring to the procurement organization."

The deal comes on the heels of IBM’s $440 million offer for DemandTec Inc., a publicly-held San Mateo, CA-based maker of cloud-based analytics software that examines and assesses customer buying trends, and follows earlier purchases of Coremetrics, Sterling Commerce and Unica.

IBM officials said that, in particular, the Emptoris’ spend management solutions map to Sterling’s business-to-business integration and supply chain management solutions. IBM also said that the acquisition supplements its supply chain management and business process outsourcing operation housed in its Global Process Services organization.

IBM launched its Smarter Commerce platform in March, 2011. The vendor pegs the market opportunity for associated software at some $20 billion.

Emptoris, which was founded in 1999, employs some 725 people worldwide.  

TAGS: cloud computing,supply chain management,analytics,procurement,IBM ,smarter commerce,sourcing,Emptoris

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