SciQuest Buys CombineNet for $26M in Cash, 820K Common Shares

SciQuest, Inc.

, a leading provider of cloud-based business automation solutions for spend management, today announced it had acquired CombineNet, a leading provider of advanced sourcing software to large companies with complex procurement needs. SciQuest purchased 100% of the outstanding stock of CombineNet, Inc. for total consideration of approximately $43 million comprised of approximately $26 million in cash and approximately 820,000 shares of common stock. The acquisition expands SciQuest's strategic sourcing footprint with an advanced, cloud-based tool that improves procurement decisions for spend categories that are typically beyond the capabilities of traditional eSourcing software. CombineNet's solution is primarily designed for Forbes Global 2000 companies and other organizations that conduct high-value, complex sourcing events. CombineNet's proprietary technology optimizes and evaluates complicated vendor bids and proposals, saving customers time and money. The software allows users to create highly-customizable online requests for proposals and run scenarios that balance a number of factors including cost, risk, timing, value and other important criteria with internal business rules and preferences. Customers can use the technology to acquire both direct and indirect resources within critical spend categories. CombineNet currently has approximately 100 customers across the globe including leaders in the retail, consumer packaged goods, restaurant and food and beverage manufacturing industries.