Coupa Software To Acquire Exari For Contract Lifecycle Management Tech

Summary

• Coupa Software has agreed to acquire Exari for $215 million in cash.
• Exari has developed a robust contract lifecycle management software system.
• With the deal, COUP will add significant and complementary capabilities as it seeks to gain a greater share of wallet from enterprise spend managers.
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Quick Take

Coupa Software (COUP) announced it has agreed to acquire Exari for $215 million.

Exari operates as an enterprise contract lifecycle management [CLM] software company.

With the acquisition, COUP is adding important functionalities to its business spend management system as the firm seeks to expand the breadth of its offerings to enterprise customers.

Target Company

Boston, Massachusetts-based Exari was founded in 2000 to help enterprises gain better contract visibility, reduce costs and optimize contract lifecycle time through its cloud-based, AI-powered CLM solutions.

Management is headed by CEO Bill Hewitt, who has been with the firm since 2015 and was previously CEO at Vorago Advisors.

Below is an overview video of the company’s offerings:

Source: Exari

Exari’s primary offerings include:

• Exari Contracts
• Exari Vision
• Exari DocGen
• Exari Match
• Contiki ECM

Company partners or major customers include:

• DocuSign (DOCU)
• SalesForce (CRM)
• Jaspersoft
• Alfresco

Source: Exari

Investors have invested $34 million in the company and include Wellington Financial and Beacon Equity Partners. Source: Crunchbase

Market & Competition

According to a market research report by Research and Markets, the global CLM software market was valued at $1.1 billion in 2018 and is projected to reach $2.4 billion by 2024.

This represents a CAGR of 14% between 2019 and 2024.

The main drivers for this expected growth are the numerous benefits of CLM, such as improved lifecycle efficiency, ensured compliance with regulations, reduced risk, enhanced decision making, and transparency, among others.

Major competitive vendors that provide CLM solutions include:

• CLM Matrix
• IBM Emptoris (IBM)
• Icertis
• SAP (SAP)
• BravoSolution
• Contracked
• Contract Logix
• Determine (DTRM)

Source: Sentieo

Acquisition Terms and Financial

Coupa disclosed the acquisition price and terms in a form 8-K filing as $215 million in cash.

Management didn’t provide a change in financial guidance as a result of the proposed transaction.

Analyst’s Disclosure:I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.