posted on 11/23/2010 12:59:41 PM
The SCM and e-commerce specialist Ariba signs an agreement to acquire another e-commerce specialist, Quadrem, and expand its toolset for manufacturers seeking on-demand supply chain management tools.
Aiming to bulk up its supply chain management (SCM) capabilities and e-commerce network, Ariba late last week agreed to acquire Quadrem, a fellow provider of on-demand e-commerce tools, for $150 million.
The acquisition, which Ariba said it expects to close in the first quarter of 2011, would add depth to the Ariba Network, the company’s Web-based e-commerce community for manufacturing buyers and sellers.
Quadrem, which gained notoriety in the minerals and mining sector, has expanded beyond its roots to become an e-commerce supply chain management network for manufacturers across industries. Both companies offer a SaaS-based global trading platform that connects manufacturing buyers and sellers and automates many of the transactions that occur between them, from sourcing suppliers to conducting transactions to settling payments.
Quadrem’s network includes 70,000 suppliers in 65 countries, Ariba said in a statement. Its client list skews toward its roots, with companies such as Alcoa, Anglo American, BHP Billiton, and Rio Tinto mingling with manufacturers outside the metals and mining vertical, such as food and beverage giant Nestlé. Quadrem maintains a strong presence in Latin America and Asia.
“The acquisition of Quadrem will enable us to further expand our network volume and reach, accelerate growth, and extend better commerce to more companies in more regions of the globe,” said Bob Calderoni, Ariba’s CEO, in a statement.
Like Ariba, Quadrem works both sides of the supply chain management equation, providing SaaS products to manufacturing buyers as well as suppliers. For buyers, it helps automate sourcing tasks such as supplier discovery and contract quoting and negotiation. For the procurement process, industrial buyers can use Quadrem tools for workflow and requisition management, catalog and contract compliance, and transaction and supplier enablement. The company also offers tools that buyers can use to align purchase orders, resolve disputes, and gain visibility into accounts payable.
For manufacturers that act as suppliers to the rest of the industrial world, Quadrem delivers automation tools along the entire process, from selling to fulfillment to financial settlement. Its buyer directories, request for quote tool, and catalog hosting capability seek to aid the selling process, while its sales order management, expediting, and logistics management tools support suppliers as they fulfill their orders. In the settlement phase, Quadrem offers invoice presentment and dispute resolution services in addition to visibility into accounts receivable.
Quadrem CEO Charles Jackson said the combined company will “deliver unparalleled network scale and reach that enables buyers and sellers around the world to improve supply chain performance and tap new business opportunities.”
The Quadrem announcement follows by six weeks Ariba's decision to sell its sourcing and procurement consulting business to Accenture.