Unit4 acquires Scanmarket to expand ERP and procure-to-pay business

Unit4 says it has entered into a definitive agreement to purchase the vendor of cloud source-to-contract software

Enterprise cloud applications provider Unit4 is set to acquire Scanmarket in a deal that it claims will deliver a full source-to-pay procurement journey tailored for midmarket organisations.

Unit4 has entered into a definitive agreement to purchase the vendor of cloud source-to-contract software, allowing it to build on its existing ERP and procure-to-pay (P2P) offerings.

Terms of the deal were not disclosed.

Mike Ettling, CEO of Unit4, said: "We are delighted to have added Scanmarket to the Unit4 portfolio. Their market-leading global strategic procurement capabilities and cloud-based solutions are trusted by 324 customers, across more than 85 countries, and have received strong recognition from industry analysts, such as Gartner, Info-Tech Research Group and SpendMatters.

"As well as a great technology fit, both organisations are culturally similar in that we have developed our solutions with users and people at the centre of what we do, so we are excited to welcome the Scanmarket team to Unit4."

Scanmarket is a privately-held company founded in 1999 and headquartered in Denmark.

Unit4 says its solutions extends the company's transactional procurement functionality (P2P), with the acquisition bringing "additional capabilities" in strategic procurement including sourcing, spend analytics, supplier management and contract lifecycle management.

As a result, Unit4 will now be able to provide organisations with a unified source-to-pay journey.

"As well as supporting Unit4's growth ambitions, this deal marks a significant investment in the company's ERP solution, and will enable customers to gain deeper insight into their spend, to manage suppliers and contracts better and realise savings on procurement, with an enhanced customer experience," Unit4 added.

Betina Nygaard, CEO of Scanmarket, said: "Scanmarket is all about people so, when considering this deal, finding a buyer who is a cultural match was of the utmost importance. People centricity is also key to Unit4 and, not only that, the company shares our core values.

"Our team has been fundamental in getting us to where we are today, and Unit4 clearly recognises the quality and skills of our colleagues. In addition, both companies are focused on digitalisation and, in the case of Scanmarket, centred on transforming the procurement function through best of breed source-to-contract capabilities while effectively managing governance, risk and compliance.

"The combination of Unit4 and Scanmarket will deliver a comprehensive Source-to-Pay solution and bring added value for midmarket and enterprise organizations across both upstream and downstream procurement. "