Friday 7th July, 2017
In a dramatic move, spend management company Proactis has agreed to buy Perfect Commerce in a reverse takeover reported to be worth USD132.5 million.
Perfect Commerce develops and sells cloud-based, technology-led, spend management products for the public and private sector markets. It has operations in the US, UK and Europe and serves approximately 150 customers, with over 1.3 million users across more than 80 countries, 20 languages and 100 currencies. Perfect Commerce also has its own proprietary supplier network called 'The Business Network' and has around 970,000 suppliers connected to it.
The purchase will place Proactis alongside some of the major end-to-end solution providers in the industry.
Proactis has appointed Perfect Commerce CEO, George Hampton Wall Jr as CEO of the combined group, effective from completion. Proactis CEO Rod Jones retired from the board on Thursday, and has been replaced by Chief Financial Officer Tim Sykes, who will resume his CFO role upon completion of the deal.
"The acquisition will accelerate Proactis' growth and bring substantial global scale to the group, positioning us to exploit the high growth areas of the spend management market and enabling us to provide our customers with an even broader product offering," Sykes said.
"The board has identified significant efficiencies that it expects to realise through the combination of commercial and operational processes and expects these to be delivered within the first twelve months following completion. We also believe that we are acquiring Perfect Commerce at a profitability inflexion point, with its momentum underpinned by a series of new name wins in recent months," he added.