Coupa Software (NASDAQ:COUP), a leader in cloud-based spend management, today announced that it has acquired substantially all of the assets of Spend360 International Ltd. to help companies digitise antiquated processes for data classification. Based outside London, Spend360 is an analytics solution that uses deep machine learning and artificial intelligence to structure and cleanse data in a format that finance and procurement can actually use.
With the addition of Spend360, Coupa will help transform outdated data classification processes that rely on humans for accuracy with a modern, digitised system that uses innovative technologies to classify data more quickly and accurately. Embedding Spend360 intelligence in the Coupa platform will make it easier for businesses to reduce risks in their supplier base, grow savings opportunities, and increase efficiency and agility.
Together, Coupa and Spend360 will comprise a data warehouse that has, to date, processed or analysed more than a total of $1.3 trillion in spend – and counting – with a global category-level benchmarking and analytic capability that is competitively distinguished.
“Today, Coupa’s acquisition of Spend360 provides an invaluable offering to customers and partners. Tomorrow, it will drive an artificial intelligence and machine-learning capability to mine all the spend going through Coupa’s platform, guiding users to better decisions,” said Jason Busch, Founder of Spend Matters and Azul Partners. “When the dust settles from the announcement, customers will love this deal and competitors will cringe. Spend360 has quietly emerged as thegold standardfor spend analysis classification and our recent analysis showed that they are the vendor to beat in that market.”
Spend360 increases the accuracy and precision of data classification while also decreasing the time and effort required to gain insights into spend management analysis. For its market leadership, Spend360 was one of only 22 organisations in the United Kingdom (UK) to win a coveted “Innovate UK” grant in 2015.
“When we created Spend360, we set out to automate the complex task of accurately classifying business spend data using the power of deep learning technology,” said Paddy Lawton, founder of Spend360. “Coupa gives us an opportunity to share our innovations with more customers and even larger data sets with a focus on network insights. We’re thrilled to be a part of the team.”
Understanding how money is spent is critical for the effective operation of any business. Yet, many businesses still lack clear visibility into spend. This obscurity is often caused by items such as disparate systems across the globe, employees spending outside of hard-to-use systems, and spend occurring in different languages or currencies. Coupa’s cloud platform for business spending is a full solution that drives high adoption from employees and suppliers and provides power applications for expert users across finance, procurement, and accounts payable.
“Spend360’s innovations around machine learning and artificial intelligence have dramatically improved results for their customers and will take Coupa to the next level,” said Rob Bernshteyn, CEO of Coupa. “Embedding Spend360 into our unified platform is a perfect way for us to increase value for customers through insights from their own spend data. However, it is the power of our customers’ combined spend, or the network effect, that will give them even more business value over time.”
Coupa expects the capabilities from Spend360 to be made available to select Coupa customers later this year. As part of the acquisition, the Spend360 team has joined Coupa to continue developing forward-thinking approaches for data classification and predictive insights. This team will be instrumental in helping Coupa drive even more value for its customers. The transaction closed at the end of December 2016 and financial terms were not disclosed. Coupa is not updating its guidance for its fourth quarter or fiscal year ending January 31, 2017, which it provided on December 5, 2016. The acquisition is not expected to have a material impact on Coupa’s results of operations or financial condition for its fourth quarter or fiscal year ending January 31, 2017.
This release includes forward-looking statements. All statements other than statements of historical facts, including the quotations, statements regarding the acquisition of substantially all the assets of Spend360, including the proposed benefits, statements regarding our guidance and the effect of the acquisition on our results of operations and financial condition, and statements regarding the capabilities of Coupa and Spend360 following the acquisition, are forward-looking statements. These forward-looking statements are based on Coupa’s current expectations and projections about future events and trends that Coupa believes may affect its financial condition, results of operations, strategy, short- and long-term business operations and objectives, and financial needs.
These forward-looking statements are subject to a number of risks, uncertainties and assumptions that may cause actual results to differ materially, including: difficulties with the integration process or the realisation of the benefits of the acquisition; we have a limited operating history, which makes it difficult to predict our future operating results; if we are unable to attract new customers, the growth of our revenues will be adversely affected; because our platform is sold to large enterprises with complex operating environments, we encounter long and unpredictable sales cycles; if we fail to develop widespread brand awareness cost-effectively, our business may suffer; the markets in which we participate are intensely competitive; our business depends substantially on our customers renewing their subscriptions and purchasing additional subscriptions from us; any decline in our customer renewals would harm our future operating results; because we recognise subscription revenues over the term of the contract, fluctuations in new sales will not be immediately reflected in our operating results and may be difficult to discern; and we have experienced rapid growth in recent periods, and if we fail to manage our growth effectively, we may be unable to execute our business plan, maintain high levels of service or adequately address competitive challenges.
These and other risks and uncertainties that could affect Coupa’s future results are included under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” in Coupa’s quarterly report on Form 10-Q filed with the SEC on December 9, 2016, which is available at www.investors.coupa.com and on the SEC’s website at www.sec.gov. Further information on potential risks that could affect actual results will be included in other filings Coupa makes with the SEC from time to time.
The forward-looking statements in this release reflect Coupa’s expectations as of the date hereof. Coupa undertakes no obligation to update publicly any forward-looking statements for any reason after the date of this release to conform these statements to actual results or to changes in our expectations.