In its second acquisition in two months, Cary-based SciQuest, a provider of e-procurement services, agrees to buy Spend Radar. The deal could be worth as much as $17.5 million.

SciQuest (Nasdaq: SQI) is paying $8 million in cash and $2 million in stock for Spend Radar, which focuses on spend management solutions and analysis.

Owners of Spend Radar, which is based in Chicago, could earn another $7.5 million in cash and stock if Spend Radar hits revenue targets over the next five quarters.

The deal could close as soon as Oct. 1.

In July, SciQuest bought Upside Software for $22 million.

Writing in a blog post at SciQuest’s website, Chief Executive Officer Stephen Wiehe talked about the Spend Radar deal:

“Behind every successful business decision is good data – and lots of it. The ability to understand spend and supplier data is a critical piece of a comprehensive spend management process, and something our customers have told us they need.

“To get a complete overview of spend, organizations can’t just look at the spend in the procurement system, but also need to look at pCard spend and AP invoice data. And, it becomes even more difficult if the organization wants to consolidate across multiple ERPs and business units. Spend Radar gives organizations the ability to collect, repair and classify large amounts of disparate data to discover new savings. And while analyzing data can seem to be an overwhelming task, we don’t think it has to be that way.

 

“Spend Radar’s focus has been to help any organization working with spend or supplier-related data to better understand that data – quickly and easily – so they can take action to manage costs and identify new savings. As we’ve seen so many of our customers mature, it’s become even more important that they have the right tools to improve data quality and reporting so they can fully understand their spend. We also see this need with potential new SciQuest customers as they prepare to invest in new procurement technology. Upfront, they need to prove there are real savings opportunities in the contract compliance and efficiencies that are driven by e-procurement systems.

“As we looked for the best spend analysis tool to offer our customers, our choice was clear. Spend Radar is consistently recognized as a leader in the area of spend analysis. Jason Busch, executive editor and managing research director of Spend Matters said in a post: “In terms of competition, Spend Radar deserves a spot on the top of any spend analysis shortlist.” Spend Radar was also recognized in with a Stevie Award for New Product and Business Innovation of the Year.

“Spend Radar’s cloud-based solutions are a perfect fit with our product suite. And what’s more, the Spend Radar team shares the same customer-centric philosophy that is so important to us here at SciQuest. We’re especially excited to have the Spend Radar team join SciQuest – their experience and knowledge of all things purchasing and spend analysis is invaluable to our customers.

“By incorporating Spend Radar’s spend analysis product into the SciQuest product suite, we’re now able to offer our customers a comprehensive solution that is fast, easy and flexible to make sure they’re doing everything they can to turn their spending into a true source of savings.”