CHICAGO -- MarketMaker4 has announced that it has acquired the eSourcing practice of Category One, a provider of specialist procurement services including collaborative procurement contracts; framework agreements and eSourcing services for the convenience store retailing sector.
From August 2012, Category One's clients will have the choice of continuing to use the existing legacy software for eSourcing activities such as eRFP's and eAuctions or upgrading to the MarketMaker4 platform which combines its innovative eSourcing tools with an information platform that provides business intelligence capabilities, relevant Market Insights, and its MarketMaking support service.
Category One's decision to sell its eSourcing practice to MarketMaker4 forms part of a wider strategy to focus more on providing framework agreements, which the company said is gathering "significant interest" amongst top c-store chains and in other retail channels.
"Brett Melvin and I acquired Category One several years back when we were looking for a procurement services business that we could bring to our networks in both the retail and government sectors," said Porter Montgomery, CEO of Category One.
"As we scanned the landscape to identify partners to help enhance and grow our current offering, we were incredibly impressed with the flexibility of the innovative MM4 platform coupled with their unparalleled experience in eSourcing. Selling the sourcing business was a very delicate decision because we still work with these same clients hence it was critical for us to find a partner that we felt would be able to manage our clients' needs and also offer them an exciting roadmap for their future sourcing technology requirements," he said.
"We've cultivated more than a quarter century of experience and relationships in the convenience and retail sector, so we look forward to sharing our knowledge and experience with MM4 to grow the offering in this sector while bringing the savings and efficiencies of eSourcing to a broader audience," Category One chairman Brett Melvin added.
MarketMaker4 chairman Chirag Shah said, "Buy and build is a very important part of our growth strategy, and we have worked hard to ensure our first acquisition has plenty of synergy potential."
CEO Dave Bowen said, "I was originally introduced to Category One by a mutual client following which we have been working together in a number in client situations over the last few months to validate the strategy. We are delighted with the responses we get when Category One clients are introduced to our integrated platform approach; and the clients are delighted with the results they get in terms of higher yields, greater self-sufficiency and more frequent use of eSourcing techniques."
Washington, D.C.-based Category One provides full-service e-procurement solutions that it said drive prices lower, reduce procurement time and increase profit margins using its technology platform. The procurement solutions available through Category One significantly enhance the performance of supply chain professionals by improving processes, reducing product costs and facilitating objective decision-making, it said.
Chicago-based MarketMaker4 combines an eSourcing suite, supply market intelligence, business intelligence tools and its MarketMaking support service.
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