Spend analytics firm to enhance market opportunity; Emptoris predicts 50 percent revenue growth
Burlington, MA September 15, 2003 Sourcing solutions provider Emptoris Inc. today announced the acquisition of Zeborg, a spend analytics firm.
Emptoris claimed the acquisition has positioned it as the No. 1 strategic sourcing software provider in the procurement and sourcing applications market, a $1.7 billion technology segment according to industry analysts.
Specifically, Emptoris said it would benefit from the Zeborg acquisition by giving it a broader market opportunity, a larger sales organization and better cross-selling opportunities, which translates into a forecasted 50 percent revenue growth in 2004.
For Emptoris customers, the provider said it would offer tight product integration, expanded sourcing domain expertise, and new technologies and an expanded development group.
In addition to acquiring Zeborg's software and services offerings, Emptoris said it would inherit the company's sales team as well as Global 1000 clients from a wide range of industries. Zeborg's customers include American Express, Cigna, Fleet Boston Financial Corporation, KeySpan, and Owens Corning. Zeborg has processed over $480 billion in corporate spend data and over 350 million transactions from over 100 data systems.
"Due to its indirect spending focus, Zeborg was naturally strong in services sectors. Emptoris' advanced sourcing analytics have proven most appealing among manufacturers that must assess complex bills of material (BOMs) containing thousands of line items," said Tim Minahan, vice president, Supply Chain Research, Aberdeen Group Inc. "This acquisition provides Emptoris with significant opportunities to cross-sell and upsell existing customers. It also solidifies the company's role among top-tier sourcing providers, with about 50 licensed customers."