Thursday, January 8, 2009

Emptoris funding expands software buyouts

By Galen Moore

Emptoris Inc., a Burlington-based maker of supply chain software, has secured funding from Los Angeles-based Marlin Equity Partners. The company plans to use the undisclosed amount of funds to make strategic acquisitions, said CEO and founder Avner Schneur.

“Especially in this market, there are a lot of opportunities for companies in various stages and various sizes that may be a good opportunity for us to expand our footprint,” Schneur said. “With the funding and having a strong, capable financially savvy partner like Marlin that goal can…be satisfied.”

Schneur said Emptoris will be looking to acquire companies that are established in the same space, or companies whose products may complement Emptoris’ current offering of spend analysis, electronic sourcing, contract management and supply performance software.

Schneur founded Emptoris in late 1999 and launched the company officially in early 2000, he said.

In 2006, Emptoris made two M&A deals, merging with California-based DiCarta Inc., and acquiring Mindflow Technologies Inc. of Texas, both contract management software providers.

The privately held company now employs more than 400 workers, is profitable and saw 20 percent organic growth in 2008, Schneur said. He declined to disclose the amount of Marlin’s investment in the company, but said it is a pure capital investment and Emptoris has not taken on any new debt.

Schneur said Emptoris will also look to hire staff and invest in research and development.

“One goal is to continue expanding in the development area and continue extending the product, investing in R&D to make sure our product continues to be leading edge,” he said.