Selectica Acquires b-pack

Now Available at Selectica:
End-to-End Source-to-Pay Solutions.

With the acquisition of b-pack, a leader in purchase-to-pay,
Selectica offers a complete suite of procurement solutions.

Today, buy-side professionals must maximize profits and minimize costs while navigating an intense environment of compliance and regulatory change. Faster access to information, greater transparency and better communication with both internal and external stakeholders are required to realize business goals. With the acquisition of b-pack, Selectica effectively provides the solutions to successfully meet these demands.

 Selectica and b-pack | Procure to Pay is now part of the Selectica family of solutions.

Our strategy:

Deliver customized, end-to-end upstream and downstream procurement solutions integrated with contract lifecycle management enterprise-wide. As a global leader in the purchase-to-pay market, b-pack has been ranked by Gartner as a visionary in the 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement. Gartner cites b-pack’s highly configurable workflow and overall platform, strong out-of-the-box P2P functionality, ease of upgrade and mobile device support.

Prior to Selectica’s acquisition of IASTA, b-pack had developed a relationship with IASTA over many years, supporting purchase-to-pay opportunities through an OEM program. Now that all three companies are one, each with its own in-depth expertise, the synergy is even stronger—from source to pay, with supplier management and contract management optimizing the whole process. By consolidating all of our deep capabilities we are setting a new industry standard of end-to-end software, service and strategic solutions for the enterprise.

Here’s how:

  • Our integrated solutions provide visibility into the previously unseen, enabling you to holistically review your processes, proprietary data and business agreements for unidentified opportunities.
  • b-pack’s focus on downstream solutions provides added value to Selectica’s current capabilities in upstream solutions and fully integrates with contract lifecycle management.
  • Whether our customers are looking to address immediate needs in cutting costs, gain contract control, manage supply risk or embark on procurement transformation, they can sequence their investments in any way they want, knowing all their solutions will work together offering greater strategic flexibilities.
  • In addition to our larger scale and increased resources, we now have offices in France and Germany to better serve our customers with international operations.

The combination of Selectica’s sourcing and contract lifecycle management with b-pack’s industry-leading procure-to-pay technology offers the complete best-in-class supply management suite of solutions. Procurement professionals worldwide are now able to work more effectively and efficiently—increasing savings, mitigating risk, providing valuable insights and supporting the bottom line.

The visions of Selectica and b-pack are highly aligned – both companies are seeking to provide technology to finance and procurement professionals to be more efficient and effective while driving out costs, enhancing revenue and reducing risk. We believe b-pack’s extensive ‘Source to Pay’ solutions are industry leading, as evidenced by Gartner positioning b-pack as a ‘visionary’ in its most recent Procure to Pay Magic Quadrant. This is such an exciting moment in the company’s history as we now offer a complete end-to-end Source to Pay solution with enterprise grade contract lifecycle management.
— Patrick Stakenas, CEO, Selectica

We are very excited to bring our teams and innovative technologies together to build a global industry leader in strategic sourcing, supplier management, procure-to-pay and contract management. We’ve initiated our product integration strategy and efforts to build the best source-to-pay cloud solution, and expect to deliver significant value to the marketplace and our joint customers in the very near future.
— Julien Nadaud, CEO, b-pack

FAQs

You can also contact us or email us with your questions.

Who is b-pack?

b-pack is a global leader in purchase-to-pay software and services. The company is based in Atlanta, GA, with operations in Aix-en-Provence (near Marseille) and Paris, France; Hamburg, Germany; and London, UK. Well-known within the global market, b-pack is rated by Gartner as a visionary in the 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement citing its highly configurable workflow and overall platform; strong out-of-the-box P2P functionality; ease of upgrade and mobile device support. With more than 14 years of expertise and innovation, b-pack has been implementing flexible solutions that address organizations’ specific procurement processes and requirements.

What does b-pack do?

b-pack specializes in purchase-to-pay solutions, which include but are not limited to e-procurement, budget management and invoicing/accounting functions. b-pack can automate the entire purchase-to-pay cycle from sourcing to procurement and budget management all the way to invoicing.

What are b-pack’s products and services?

b-pack purchase-to-pay products include: eProcurement, Asset Management, Budget Management, Invoice Management and Expense Management. b-pack’s purchase-to-pay solutions deliver best practices to ensure higher productivity, better control and greater spend visibility.

Who are b-pack’s customers?

b-pack is currently being used by more than a 100 global customers as a strategic solution to manage all their spend (including Direct and Indirect), automating the invoice match process, entering and generating all financial information in real time. b-pack is used by many global companies such as Sony Music, McDonald’s, Dannon, Renault-Nissan, Yves Saint Laurent, Gucci, Aon, Telehouse, BNP Paribas, Buccaneer Energy, United Drug, Vinci Airports, and French Prime Minister Services, to name a few. You can visit b-pack customer listing for more information.

Should b-pack customers continue to contact their b-pack Sales Rep?

Yes. Until further notified, b-pack customers should rely on existing Sales and Account Management relationships; please contact them directly.

Can you share b-pack’s financials with me?

We are able to share limited information at this time with more to follow. Selectica understands that b-pack has operated as a profitable company that had approximately $4 to $5 million of revenue in calendar 2014 based on our due diligence, assisted by PWC, of preliminary, unaudited financials. It has historically grown in the low double-digits overall, with its SaaS business having grown much faster. A majority of its revenue is from customers located in mainland Europe, while its U.S. market presence has been building in the last 3 years since opening their U.S. headquarters in Atlanta. The acquisition will be closed at a price of approximately $12.5 million of which roughly 90% of the purchase price is in Selectica stock (calculated at a fixed price of $6.11 per share, resulting in 1,841,244 shares of common stock to be issued) and 10% in cash. Selectica is targeting a closing date in Fiscal Q1 and has approximately 75 days, from the date of close, to complete an audit of b-pack’s 2014 financials although the intention is to release and file pro forma financials as soon as possible.

How many people does b-pack employ?

b-pack has approximately 50 employees worldwide.

Where are b-pack employees located?

b-pack employees are based in Aix-en-Provence and Paris, France; Atlanta, GA; Hamburg, Germany; and London, UK.

Why did Selectica acquire b-pack?

With the acquisition of b-pack, we are significantly advancing against our strategy to have an end-to-end upstream and downstream procurement solution integrated with enterprise contract lifecycle management. b-pack has had a relationship with IASTA for many years supporting purchase-to-pay opportunities through an OEM program. The synergy between all the companies will continue with b-pack serving purchase-to-pay and downstream procurement solutions for Selectica customers.

In addition to the product synergies, b-pack will provide Selectica with a significant foothold in mainland Europe – a market with incredible growth potential and currently under-served by Selectica and IASTA historically.

When is the acquisition scheduled to close?

The transaction is currently expected to close during Q1 of Selectica’s fiscal year 2016, which ends June 30, 2015.

How does this change/enhance the focus of Selectica’s business?

b-pack’s culture, technologies, products and customer base continue to be highly complementary to Selectica. b-pack’s focus on purchase-to-pay and e-procurement solutions provides added value for Selectica’s current products, customers, partners and go-to-market strategy – as well as Selectica’s long-term vision.

Who is b-pack’s target market?

b-pack’s target market is essentially the same as Selectica’s in that we focus on the mainstream enterprise. Now we can offer an end-to-end solution from the creation of demand through a purchase request, to the subsequent award of a contract and full spend chain with Selectica SmartContract, SmartSource and Purchase-to-Pay software. With the b-pack acquisition, Selectica now has more products, expertise and customer successes to engage our shared target market from CLM to upstream and downstream procurement needs.

Who are b-pack buyers?

Heads of strategic sourcing, vendor management, procurement, and contract management teams across a wide variety of industries worldwide. Specifically IT, finance, sales and corporate counsel—those stakeholders influencing the buying decisions.

What business problems does b-pack solve for customers and prospects?

b-pack’s mission is to simplify the purchasing process and spend management of organizations. By providing and implementing flexible, innovative and easy-to-use purchase-to-pay solutions, they provide complete linked visibility into every element that supports downstream procurement activities.

What are the key differentiators vs. the competition?

Gartner ranks b-pack as a visionary in the 2015 Magic Quadrant for Procure-to-Pay Suites for Indirect Procurement citing its highly configurable workflow and overall platform; strong out-of-the-box P2P functionality; ease of upgrade and mobile device support. b-pack is also rated as an excellent e-procurement vendor with a worldwide footprint. Its aggregate strengths over the competition include a highly configurable workflow and overall platform; and, having signed new clients in Russia and Singapore, an expansive global reach. b-pack rides above the competition with strong out-of-the-box purchase-to-pay functionality for projects and multi-language capability.

When will Selectica employees get trained on b-pack products and services?

Selectica and b-pack management team members are working on an integration plan.

Who are b-pack’s competitors?

b-pack’s main competitors include Ariba, Coupa, Wax Digital and Synertrade, although firms such as Verian technologies and SciQuest compete in the United States.

Does b-pack have solution that overlap with Selectica’s existing solutions?

With their core focus on ‘downstream procurement’ or purchase-to-pay, overlap with Selectica’s existing upstream procurement and enterprise contract management functionality is minimal.

How will the products integrate?

Selectica, with b-pack, will continue to bring to market best-of-breed applications including elements of end-to-end upstream and downstream supply management solutions and enterprise contract lifecycle management. Over time, Selectica will further integrate these applications to enable a seamless user experience between them. With Selectica, clients are future-proofing themselves so they’ll be ready when the time comes to adopt a more complete, end-to-end solution.

What is the timeline for integration?

Integration planning is underway now and integration execution will begin after the transaction closes with an estimated close during Q1 of Selectica’s fiscal year 2016. We anticipate reporting integration progress throughout FY16.

 

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