Simfoni, a leader in digital procurement solutions, partners with a prominent supplier of eSourcing and award optimization solutions to create market leadership in strategic sourcing technology.
Simfoni – the world’s most accessible digital procurement vendor, has started the new year with a bang by announcing today that it has finalized its acquisition of EC Sourcing Group, a recognized leader in eSourcing and decision award optimization. This acquisition combines both Simfoni’s market-leading Spend Intelligence module and EC Sourcing Group’s market-leading eSourcing platform which will support enterprise clients with an exclusive package that delivers unified data integration which, in turn, drives powerful insights across the strategic sourcing lifecycle.
Chirag Shah, Simfoni Founder & Chairman expressed his delight on this news,
“Spend Analytics and eSourcing technologies are like 2 sides of the same coin – an essential combination for leading procurement practitioners – yet the market offers few best-of-breed, integrated solutions of this nature.”
He also added that, “There are tremendous synergies between the two companies in addition to the product fit. The combined entity supports hundreds of enterprise customers across multiple industry verticals and offers global capabilities that are unmatched by other vendors.’’ In his commentary on the acquisition, Shah highlights that “Ron Emma and Andy Caetta are both proven procurement professionals that have used their domain expertise to build highly intuitive and feature-rich products that have positioned EC Sourcing Group as the standout leader in the Spend Matters Solution Map and a ‘50 to Know’ vendor in the Procurement Almanac. I’m delighted to be joining forces with them to create a powerhouse in the Source 2 Contract segment.”
This achievement caps a banner year in which Simfoni saw growth across all crucial performance indicators:
- Over a 300% increase in MRR
- Over a 350% increase in Customer Count
- $15M Strategic Investment from PeakSpan Capital
- Over a 200% increase in employee headcount
Through this move, Simfoni continues to stick by its composable procurement philosophy by presenting a Spend Automation solution for end-users to better control tail spend, while freeing the procurement team to concentrate on higher-value activities with a plug and play set of modules—each with market control in its particular segment.
Supplying a One-stop eProcurement and eSourcing Shop for Procurement Teams
EC Sourcing Group’s eSourcing solution offers market-leading eRFX, eAuction, and Contract Management features, and has standout capabilities for automation of sourcing award decisions. Its Optimization module is best-in-class and provides sourcing professionals with an easy-to-use capability that can process overly complex scenarios in just a matter of seconds – offering significant advantages in terms of time and money. These data-driven solutions are the ideal accompaniment to Simfoni’s Spend Intelligence platform and further improve the tractability of its Spend Automation platform in the area of tail spend management.
Consumers of both companies will profit from increased global reach, increased investment in product development and modernization, while enjoying the same excellence of customer and service delivery assistance that they have come to expect from Simfoni and EC Sourcing.
“After almost 20 years building EC Sourcing into one of the leaders in the eSourcing and award optimization segment it was especially important for us that we found a partner that would respect our legacy. With Simfoni, we found a team that truly shared our view about the future of leveraging data to automate the strategic sourcing lifecycle and have the complementary resources to enable us to build a dominant position in the S2C market,” declared Ron Emma, Co-founder, EC Sourcing Group. “I would like to take this opportunity to thank the EC Sourcing team for their dedication and commitment and of course our customers who have supported us over the years; we look forward to continuing to serve them with the same professionalism and an even greater selection of innovative products and services.”
Jason Busch, CEO of Spend Matters remarked,
“We’ve tracked Simfoni and EC Sourcing Group for many years and both vendors exceed the Solution Map analyst/functional and customer satisfaction benchmark average for all segments of the market in which they compete. But what is most curious to me about this acquisition is the unique pedigree of the Simfoni executive team in the strategic sourcing technology area -- which multiple members of the team are expert in from previously leading tech firms in this segment. Given this expertise and operating knowledge, combining Simfoni spend analytics, tail spend management and spend managed services with a top performing strategic sourcing technology seems about as low a risk, high upside combination as anyone could put together from an M&A perspective in the fast-growing procurement technology sector.”
