Click Commerce Under New Ownership

Private investment firm Marlin Equity Partners buys two units of supply chain management software provider, while another Marlin company, Emptoris, buys a third.

Posted on May 18, 2009

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Click Commerce, Inc. is under new ownership — again. The company that Illinois Tool Works, Inc. purchased in 2006 as an inroad into the supply chain software business now will function within the Marlin Equity Partners family of companies.

In a transaction of undisclosed value, Marlin acquired three software operating units and the Click Commerce name from ITW unit Requisite Technology, Inc., formerly doing business as Click Commerce, Inc. Two of those units, Service Network Solutions (SNS) and Research and Healthcare Solutions (RHS), will make up the new Click Commerce, providing software to manage and improve business processes in a variety of industries, such as manufacturing, aerospace and defense, high tech, logistics, and healthcare. Meanwhile, Emptoris, which is owned by Marlin, acquired the third unit, Contract Service and Management (CSM).

The Click Commerce SNS division focuses on optimizing service network planning and execution, as well as providing analytics, collaboration, and visibility, to enable businesses to monitor, adapt, and respond to performance in real time, according to the company. The RHS division helps to streamline administrative processes for funding medical, animal, and basic research and ensuring government-mandated compliance for research studies.

Dave Barboro, formerly general manager of SNS, will continue as president of Click Commerce SNS. Nick Stier, formerly senior vice president of RHS, takes on the mantle of president of Click Commerce RHS. Bill Atkinson, Technology Group President of Marlin Equity Partners, is chairman of the new Click Commerce.

“Click Commerce now has the dedicated resources and strategic focus to pursue industries in which its software and consulting services can help companies better compete,” Atkinson said in a company statement. “Customers can rely on Click Commerce SNS for solutions that optimize inventory levels across their networks, streamline operational processes, and grant greater visibility throughout the supply chain.”

Meanwhile, as the new owner of Click Commerce CSM, Emptoris will add the contingent and professional services procurement software to its own product suite, which includes spend analysis, compliance, contract management, and supplier performance management functionality.

One key advantage Click CSM brings to the table is its customer base, Emptoris officials said. “The acquisition will … give the company access to an expanded roster of Global 2000 customers and solidify the company’s position as the market leader in the most valuable and complex aspects of supply and contract management,” said Avner Schneur, president and CEO of Emptoris, in a statement. “This acquisition clearly extends our value to our customers, many of whom have been struggling with complex services procurement.”

According to a statement from Emptoris, Click’s contract and service management software, originally acquired from Elance, Inc., is widely used at leading global companies. In 2008, the company said, customers procured more than $10 billion in products and services in more than 40 countries using the software.

Kevin Potts, vice president of product management and marketing at Emptoris, explained in a statement, “When we surveyed our customers, we found a growing recognition that better management of statement of work (SOW) or project-based services presents an immediate opportunity to impact the bottom line. Our customers also told us that the problem cannot be solved using their ERP systems, and very few have deployed dedicated solutions to manage it. We found an ideal solution with Click Commerce’s Contract and Service Management solution, which has a proven track record and global capabilities.”

Schneur added that Emptoris will increase CSM’s R&D investment and will continue to work with Click Commerce’s partners.

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