German enterprise software maker SAP to buy technology firm Fieldglass
27 Mar 2014
SAP yesterday said that it would buy technology firm Fieldglass, as part of the German enterprise software maker's plan to expand in cloud-based workforce management services.
Fieldglass is a technology provider for procuring and managing contingent labor and services, and its cloud-based Vendor Management System (VMS) allows companies to better procure and manage their flexible workforce.
Based in Chicago, Illinois, with approximately 350 employees, Fieldglass' cloud-based solution is used in more than 100 countries and 16 languages.
According to Staffing Industry Analysts, Fieldglass, whose majority investor is private equity firm Madison Dearborn Partners, is the current VMS market leader in total spend and global footprint.
In 2013, Fieldglass added 2 million new users in markets worldwide. Its clients include GlaxoSmithKline, Johnson & Johnson, Monsanto, Rio Tinto and others.
The addition of Fieldglass' cloud-based VMS with the network-based procurement capabilities of its recent acquisitions Ariba and the human resources expertise of SuccessFactors, SAP said that the Fieldglass acquisition uniquely positions it to deliver a platform for businesses to manage their entire workforce, both temporary and permanent staff, from initial recruiting and on-boarding to ongoing development, performance management, retention and retirement.
SAP noted that the contingent labor and statement-of-work services is a $3.3 trillion, high-growth market according to industry analyst estimates, and are expected to grow by nearly 30 percent over the next three years, according to research by Ardent Partner.
''The acquisition of Fieldglass creates a compelling advantage for SAP customers as they access, attract and manage talent via the networked economy,'' said Bill McDermott and Jim Hagemann Snabe, co-CEOs and members of the executive board of SAP AG.
''This move reaffirms SAP as the undisputed leader of integrated human resources and procurement in the cloud for businesses of all sizes and industries,'' they added.
Financial terms of the deal were not disclosed.
