Emptoris, Inc. (“Emptoris”), a leading provider of strategic supply management and enterprise contract management solutions, today announced its acquisition of Rivermine, Inc. (“Rivermine”), one of the market’s leading Telecom Expense Management (TEM) solution providers. With the acquisition, Emptoris expands its award-winning solution suite, adds a portfolio of new Global 1000 companies to its customer base, and increases its footprint with key strategic partners.
“A core value proposition of Emptoris is its ability to help Global 1000 companies address high-value, but challenging spend categories in a manner that delivers meaningful bottom-line impact. A regular complaint heard from CFOs and CPOs is that their ERP systems are not fundamentally designed to manage these critical spend categories such as transportation, contingent labor and services. The acquisition of Rivermine strengthens and extends Emptoris’ value proposition and competitive positioning by providing proven expense management technology in a significant services spend category,” stated Patrick D. Quirk, president and chief executive officer of Emptoris.
Rivermine – A Market Leading Solution for Telecom Expense Management
Rivermine, now a division of Emptoris, is a leading provider of TEM solutions that enable organizations to gain visibility into, and control over, their telecom spend and lifecycle management including ordering, inventory, invoice processing and auditing, as well as wireless expense management, mobile device management, reporting and analytics. The company’s success is rooted in its advanced and rich software feature set, as well as its domain expertise in navigating the complex billing systems of global telecommunication companies. Customers – including Chubb Insurance, Ford Motor Company, Fannie Mae, IKON Office Solutions and Sodexo – manage more than $6 billion in communications spending annually using Rivermine solutions. Rivermine has been ranked a ‘Leader’ in the 2010 Gartner Magic Quadrant for Telecom Expense Management. Their market-leadership is further reflected in a four-year revenue growth rate of 400%, extremely high customer renewal rates and strong recurring revenues.
Telecom Spending – A Global 1000 Priority, Yet Difficult to Control
Companies spend more than $1 trillion annually on enterprise telecom technologies and services. With the ever increasing use of mobile devices and the Internet, telecom spending has become one of the most significant areas of spending for Global 1000 companies, registering as one of the top five corporate spend categories for most businesses. It is also one of the most poorly managed areas of spend, in part due to the complex billing systems used by some telecom providers, vendor management challenges, and a greater need for internal governance and compliance. The Aberdeen Group estimates that the average Fortune 500 company spends more than $115 million per year on telecom expenses – and Gartner reports that these costs can be predictably reduced by 10% to 35% with Telecom Expense Management solutions. As such, Telecom Expense Management has become a key target for improvement by CFOs, CIOs and CPOs at global companies. According to leading analyst firms, companies will spend an estimated $5.6 billion in 2011 on software and services to solve e-procurement and telecommunications management challenges.
Addressing High-Value, Challenging Spend Categories
ERP and e-procurement systems fail to address the sourcing, contract management and compliance for high-value, but challenging spend categories such as telecommunications, transportation, travel, contingent labor and services. However, a significant percentage of a Global 1000 company’s procurement spending is typically dedicated to services spending in these categories. Emptoris is the only solution provider with a vision to offer Global 1000 companies the added capabilities needed to address and drive greater savings in dozens of these critical spend categories.
“The acquisition of Rivermine further offers Emptoris entre into global companies who clearly understand the bottom-line impact of applying technology to address key spend categories,” said Mark Logan, chief executive officer of Rivermine. “We are very excited to join the Emptoris family and believe the combination of our organizations will dramatically reshape the TEM market, creating the industry’s first TEM offering as part of a broader spend management suite – and one of the industry’s most extensive global footprints and support networks.”
A Stronger, More Competitive Emptoris
“This acquisition is more than just a technology acquisition, it is the further fulfillment of our vision to address high-value, challenging spend categories. There is significant value achieved in expanding our customer base and our partner footprint, and in delivering added capabilities to our Global 1000 customers. The sum of these parts will help fuel our sales growth and create a stronger, more competitive Emptoris in a market that is rapidly growing and consolidating,” commented Patrick D. Quirk.
With the acquisition of Rivermine, Emptoris now has an expanded suite with six strategic solutions, more than 300 Global 1000 customers, over 650 employees globally, and combined projected annual growth in excess of 20%. Both Emptoris and Rivermine also have premier partner relationships with the leading management consulting firms including Accenture, Deloitte and IBM.
Emptoris’ majority shareholder and capital partner, Marlin Equity Partners, which has over $1 billion of capital under management, funded the Rivermine acquisition as part of its plan to accelerate Emptoris’ strategic growth. “Marlin remains focused on furthering Emptoris’ organic and strategic growth. The acquisition of Rivermine is a perfect strategic fit for Emptoris, and we will remain opportunistic in identifying and creating future opportunities to add value for Emptoris’ customers and our investors,” said Nick Kaiser, partner of Marlin Equity Partners.
Rivermine’s employees have joined the Emptoris team effective December 24, 2010. Mark Logan remains with the company as president of the Rivermine division. The financial terms of the acquisition were not disclosed. For further information on Emptoris, please visit www.emptoris.com.
Rivermine is a leading provider of automated, award-winning solutions that enable organizations to gain visibility into, and control over, their wireline and wireless telecom spend. Hundreds of companies—including many Fortune 1000 corporations and large government agencies—have selected Rivermine to optimize their overall telecom environments and dramatically reduce costs. Rivermine currently manages over $6 billion in annual telecom spend globally. The company’s patent-pending Telecom Expense Management (TEM) solutions automate the entire telecom lifecycle including ordering, inventory management, invoice processing and auditing, wireless expense management, mobile device management, and reporting/analytics. For further information, visit www.rivermine.com.
Emptoris is a world leader in strategic supply and enterprise contract management software solutions that empower enterprises to realize best value and accelerate profitable growth. Emptoris solutions are used by successful Global 1000 companies in every industry. Emptoris customers include American Express, Boeing, ConocoPhillips, GlaxoSmithKline, Kraft, Motorola, Syngenta and Vodafone. For further information, visit www.emptoris.com.