Supply chain firm in £93 million takeover
23/11/2010
The value of the supply chain management industry has been demonstrated in a £93 million takeover of the Dutch supply chain management firm Quadrem by the procurement software house Ariba.
The deal - which will consist of cash and stock - will give Ariba a new and crucial vertical market for its software systems and supply networks. Quadrem brings with it a dominant presence in industries including mining, utilities and the public sector.
Ariba will also be able to make use of Quadrem's established set-ups in Africa and Latin America - virgin territory for the company.
Duncan Jones, a principal analyst for Forrester Research said the deal was excellent news for both sets of customers and suppliers.
"Firstly, Ariba reinforces its place as one of the four or five large supplier networks that will eventually dominate the market," he said. "Secondly, Quadrem customers will, in time, be able to upgrade to a superior platform - Quadrem is currently based on an old version of SAP's SRM module - without having to worry about switching their suppliers to a different service."
He said that the deal may mean some price rises for some customers but they will draw benefits from access to a wider range of suppliers.
The deal - which will consist of cash and stock - will give Ariba a new and crucial vertical market for its software systems and supply networks. Quadrem brings with it a dominant presence in industries including mining, utilities and the public sector.
Ariba will also be able to make use of Quadrem's established set-ups in Africa and Latin America - virgin territory for the company.
Duncan Jones, a principal analyst for Forrester Research said the deal was excellent news for both sets of customers and suppliers.
"Firstly, Ariba reinforces its place as one of the four or five large supplier networks that will eventually dominate the market," he said. "Secondly, Quadrem customers will, in time, be able to upgrade to a superior platform - Quadrem is currently based on an old version of SAP's SRM module - without having to worry about switching their suppliers to a different service."
He said that the deal may mean some price rises for some customers but they will draw benefits from access to a wider range of suppliers.
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