MarketMaker4, a Chicago-based e-procurement company, announced its acquisition by Xchanging plc, a UK-based outsourcing services provider, earlier this week. In total, MarketMaker4 (MM4) will be bought for $22 million, with $11 million paid in cash at the time of contract signing. The rest will come between 2014 and 2016, contingent on MM4 meeting certain milestones by that time.
MM4 specializes in equipping procurement professionals with online negotiation tools, built based on the founders’ experience with online bidding practices that date back to the late ‘90s. The company offers customers market intelligence, reports on bidding companies, online tools and proprietary services and software to help customers manage online bids themselves. MM4 purports to give its clients the tools to place and accept bids safely online.
Founded in 2011, MM4 has offices in Chicago, London and Dubai. Still, according to MM4 CEO Dave Bowen, having Xchanging in his corner will boost his company’s signal worldwide.
“MM4 will benefit tremendously from Xchanging’s expansive global footprint – with more than 25 offices around the world,” Bowen says. “Xchanging also boasts a network of more than 1,000 active clients, which will offer MM4 immediate synergy opportunities.” And that’s not all. Bowen is also looking forward to taking advantage of the increased speed, knowledge and insights that will come as a result of this acquisition. He hopes to provide MM4’s clients, which include Brookdale Senior Living, Inc. and NewPage Corporation, with more products and services in the years ahead.
Following the close of this deal, MM4 will retain its name and its entire team, including the founders, of which Bowen is one, along with Chirag Shah and Alan Buxton. “The business, from an operational standpoint, will remain largely unchanged and will continue to be based in Chicago,” Bowen says.
The relationship between MM4 and Xchanging is about a year old. It started when MM4 started powering Xchanging’s e-sourcing for North American clients. As the UK company started using the American one for more industries and locations, the ties between the two continued to grow and the rest is history.
Today, MM4 has 50 employees across the world and is poised to grow. As the company steps into the Xchanging network, the two’s symbiotic relationship is sure to develop further.