SAP to Expand Sourcing Offering with Acquisition of Frictionless Commerce

May 17, 2006 by SAP News

Acquiring Frictionless Commerce extends the value of SAP applications, representing a key component of the company’s strategy to offer the preferred global purchasing platform for organizations of all sizes and across all industries. The announcement was made today at the onset of SAPPHIRE ’06, SAP’s international customer conference, being held in Orlando, Florida, May 16-18. Terms of the all-cash transaction were not disclosed. Headquartered in Cambridge, Massachusetts, Frictionless Commerce serves large and midsize enterprises across an array of vertical markets, including banking, insurance, professional services, consumer products, discrete manufacturing, life sciences, telecommunications and utilities. The transaction with Frictionless Commerce is consistent with SAP’s strategy to use targeted, fill-in acquisitions that add superior functionality to its broad solution portfolio while continuing to grow its business organically.
With globalization and increasing cost pressures, companies need to take a strategic approach to managing suppliers. With this acquisition, SAP will combine the proven e-Sourcing capabilities of Frictionless with the robustness of SAP applications, including mySAP Supplier Relationship Management. As “Powered by SAP NetWeaver” solutions, Frictionless products are fully compatible with SAP applications, minimizing product integration concerns and assuring a seamless solution road map as customer requirements grow. “Frictionless Commerce’s vision included offering complete, real-time interoperability with SAP solutions,” said Mary Cotton, president and CEO, Frictionless Commerce. “With this announcement, we carry on this vision while immediately opening up our offerings to a larger number of entities. Customers can quickly benefit from the capabilities that Frictionless delivers while complementing their investments in SAP applications to manage their enterprises.”
Frictionless Commerce’s On-Demand edition offers e-Sourcing capabilities available through a Web browser. Within days, organizations can run sourcing events and begin managing suppliers. The On-Demand edition offers a faster time-to-benefit, as well as measurable cost savings with a minimal investment in time, resources and training. “With this announcement, SAP continues its extension of mySAP Supplier Relationship Management to include an on-demand option for e-Sourcing,” said Shai Agassi, president of the Product & Technology Group and executive board member, SAP AG. “Sourcing on-demand offers customers a fast and consistent way to automate labor-intensive negotiations. Because Frictionless Commerce software is ‘Powered by SAP NetWeaver’ certified, integration with SAP applications already exists, making this a quick win for our customers. We extend a warm welcome to Frictionless Commerce’s employees and partners.”
SAP anticipates that the acquisition will be completed in July 2006. Headquartered in Cambridge, Massachusetts, Frictionless Commerce employs approximately 70 people and has an additional office in London, England. SAP said that it intends to continue operations in these offices. The company said it would provide additional details about the integration upon the closing of the transaction.

Source: SAP AG

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