Coupa Acquires Trade Extensions to Broaden Cloud Platform for Business Spend
SAN MATEO, CA – May 10, 2017 – Coupa Software (NASDAQ:COUP), a leader in cloud-based spend management, today announced that it has completed its acquisition of Trade Extensions TradeExt AB to make it easier for organizations to reduce supply chain risk, increase profit margins, and achieve operational compliance.
Based in Uppsala, Sweden, Trade Extensions offers a strategic sourcing and advanced optimization platform used by many of the world’s largest brands to run sourcing projects for the most complex categories - such as transportation and logistics, production planning, and supply chain design.
With the addition of Trade Extensions’ industry leading sourcing optimization capabilities, Coupa can deliver a robust spend management solution for everything from indirect goods and services such as IT hardware and marketing services to complex categories such as direct materials and fresh produce. Organizations can source numerous categories of spend, seamlessly build contracts, manage buying, analyze spending, and easily collaborate with global suppliers, ranging in size from independent contractors to multi-national businesses - all on the same unified Coupa platform.
“Our cloud platform has transformed how organizations spend money, as evidenced by the significant and measurable results achieved by our customers. With our acquisition of Trade Extensions and our earlier acquisition of Spend360 for AI based spend classification, we are executing on our vision of a globally networked platform that delivers community intelligence to optimize business spend,” said Rob Bernshteyn, CEO of Coupa. “We’re entering the next chapter of our industry leadership, and we look forward to bringing our comprehensive solution to both Coupa and Trade Extensions customers.”
Because Trade Extensions can be configured to collect precise data that organizations need during the request for information (RFx) process, it allows buyers to benefit from the mathematical optimization that Trade Extensions provides in the analysis phase. Numerous scenarios can be quickly analyzed, which allows buyers to ‘play’ with the data and answer countless ‘what if’ questions to find solutions that meet their strategic objectives.
"Coupa's acquisition of Trade Extensions is an inspired combination of brains and brawn. When it comes to the myriad applications of optimization to improve supply chain performance, Coupa just bought itself the market leader, along with warm introductions to dozens of massive-sized companies that have been quietly using Trade Extensions for years,” said Tom Finn, analyst at Spend Matters. “Beyond having the ability to now source the most strategic areas of client spend, look for enhancements to Coupa Advantage, as the horsepower it just acquired is a dominant trading algorithm that bodes well for network buying."
Trade Extensions users are able to source and allocate the components of a supply chain to deliver an optimum solution when looking at the supply chain as a whole. This approach allows buyers to apply negotiation techniques to incredibly complex sourcing projects involving tens of thousands of items, thousands of suppliers and multiple award criteria. Optimized scenario analysis allows sourcing professionals to make informed decisions and identify the solution that best matches their precise requirements with their suppliers’ expressed capabilities.
“Trade Extensions radically changed the way manufacturers and retailers source critical goods and services. Through the years, our optimized sourcing has become the de facto standard for companies needing true strategic sourcing,” said Garry Mansell, former CEO of Trade Extensions. “Joining Coupa gives us the opportunity to share this innovation with even more forward-thinking companies while offering end-to-end spend management to our existing customers. We are excited to become part of the Coupa family.”
Coupa is not updating its guidance for its fiscal year ending January 31, 2018, which it provided on March 13, 2017.
This release includes forward-looking statements. All statements other than statements of historical facts, including the quotations, statements regarding the acquisition of Trade Extensions, 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 Trade Extension 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 realization 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 recognize 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 annual report on Form 10-K filed with the SEC on April 3, 2017, 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 May 10, 2017, except as otherwise noted. 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.
About Coupa Software
Coupa Software (NASDAQ:COUP) is the cloud platform for business spend. We deliver “Value as a Service” by helping our customers maximize their spend under management, achieve significant cost savings and drive profitability. Coupa provides a unified, cloud-based spend management platform that connects hundreds of organizations representing the Americas, EMEA, and APAC with millions of suppliers globally. The Coupa platform provides greater visibility into and control over how companies spend money. Customers – small, medium and large – have used the Coupa platform to bring billions of dollars in cumulative spend under management. Learn more at www.coupa.com. Read more on the Coupa Blog or follow @Coupa on Twitter.