Accenture + Procurian = One-third of the PO Market

4 Oct 2013

October 3, 2013, Accenture entered into an agreement to acquire Procurian for US$375 million. Procurian’s 780 employees are set to join Accenture and the acquisition is expected to complete by end of 2013. According to Everest Group’s estimates, this puts the valuation of Procurian at nearly 3X revenue.

The acquisition completes a full circle for Procurian, which began in 2000 when it acquired Accenture’s e-procurement venture called ePValue. Since 2000, the PO market has witnessed several ups and downs before entering a phase of rapid growth in 2010. At the start of 2013, PO services represented a US$1.7 billion market with a five-year CAGR of 13% . This translates into a procurement spend of over US$220 billion that PO service providers manage on behalf of their clients. Both Accenture and Procurian (along with IBM and a few others) have been at the forefront of shaping the PO industry. This viewpoint explores the dynamics of this deal and its implications for the PO market.


Page Count: 4