CARY, N.C., Sept. 3, 2013 (GLOBE NEWSWIRE) -- SciQuest , Inc. (Nasdaq:SQI), a leading provider of cloud-based business automation solutions for spend management, today announced it had acquired CombineNet, a leading provider of advanced sourcing software to large companies with complex procurement needs. SciQuest purchased 100% of the outstanding stock of CombineNet, Inc. for total consideration of approximately $43 million comprised of approximately $26 million in cash and approximately 820,000 shares of common stock.
The acquisition expands SciQuest's strategic sourcing footprint with an advanced, cloud-based tool that improves procurement decisions for spend categories that are typically beyond the capabilities of traditional eSourcing software. CombineNet's solution is primarily designed for Forbes Global 2000 companies and other organizations that conduct high-value, complex sourcing events. CombineNet's proprietary technology optimizes and evaluates complicated vendor bids and proposals, saving customers time and money. The software allows users to create highly-customizable online requests for proposals and run scenarios that balance a number of factors including cost, risk, timing, value and other important criteria with internal business rules and preferences. Customers can use the technology to acquire both direct and indirect resources within critical spend categories. CombineNet currently has approximately 100 customers across the globe including leaders in the retail, consumer packaged goods, restaurant and food and beverage manufacturing industries.
"CombineNet's technology is a great complement to our existing sourcing software, Sourcing Director, and is highly rated by industry analysts. As a result, SciQuest can now enable customers to more easily aggregate and leverage their spending across all of their goods and services – from the straightforward to the most complex and strategic. Due to the constraints of traditional sourcing software, many companies are forced to split complex sourcing events into smaller, isolated components or utilize error-prone, manually intensive processes. These ad hoc approaches lead to suboptimal results, failing to capture the full amount of potential savings. Through CombineNet's unique algorithms, multitenant SaaS architecture, deep understanding of best practices and 22 patents, we are acquiring the best solution in the advanced sourcing arena. We expect to capitalize on the demand for CombineNet's leading solution in both the commercial market and our franchise markets," said Stephen Wiehe, president and CEO of SciQuest. "We will commence integration activities immediately."