SciQuest announced Tuesday that it has acquired CombineNet, a Pittsburgh-based software company, in a cash and stock deal worth $43 million.
Executives at Cary-based SciQuest said during a conference call with analysts that the acquisition of the privately held business delivers complementary technology and creates a great opening for cross-selling.
CombineNet’s software, which is protected by 22 patents, is touted as saving business customers time and money by evaluating complicated bids and proposals from vendors. Among its 100 customers, according to CombineNet’s website, are industry giants such as Procter & Gamble, Johnson & Johnson, Coca-Cola and Hershey’s.
The 80-employee business generated about $12 million in revenue last year.
“We think there is a very strong up-sell opportunity,” CEO Stephen Wiehe said during a conference call with analysts. Just a dozen of CombineNet’s more than 100 customers are also SciQuest customers, he added.
Wiehe also called CombineNet’s software “the best advanced sourcing solution in the market” and said it complements SciQuest’s Sourcing Director software.
SciQuest’s technology is best known for its ability to enable customers to more efficiently buy goods and services online.
SciQuest shares tumbled 16 percent in a single day earlier this month after the company lowered revenue and cash flow projections for the second half of the year.
SciQuest announced the CombineNet deal, which includes $26 million in cash and about 820,000 shares of stock, after the markets closed Tuesday.
Earlier Tuesday, SciQuest shares fell 77 cents and closed at $20.03. The company’s shares have risen 26 percent this year.