Denver, CO. — To unite traditional Configure Price Quote (CPQ) efforts with intelligent pricing for improved B2B sales conversion rates and profitability, Vendavo, a leading provider of intelligent pricing and margin optimization solutions, today announced the acquisition of Endeavor Commerce, a SaaS-based CPQ solution provider.
“We believe the integration of advanced pricing science with CPQ will be a game changer for the B2B enterprise,” said Bruno Slosse, President and CEO, Vendavo. “Every dollar counts in today’s increasingly competitive landscape and end-to-end margin optimization can make or break the bottom line.”
CPQ software commonly focuses on faster time to quote and basic configuration strategies, or the bundling of products, components and services into packages with predefined rules. Price has been little more than copy-and-paste from a pre-existing list that has not been optimized across different customer segments. By integrating Vendavo’s strategic pricing guidance and customer segmentation capabilities into Endeavor’s flagship solution, EndeavorCPQ, price optimization is seamlessly injected into the CPQ workflow and enterprise profitability is enhanced.
According to Gartner Market Guide for Configure, Price and Quote Application Suites, October 27, 2016, “In 2015, Gartner estimates that the CPQ application suites market was approximately $570 million… The market has experienced sustained, double-digit growth over the last five years. Gartner estimates a 20% annual growth rate through to 2020.” Endeavor Commerce is a SaaS-based platform which supports an even stronger growth platform.
“Today, just 28% of the CPQ application suites are cloud delivered and Gartner estimates that total cloud revenue increased to $157 million in 2015, a 46% year-on-year growth,” Slosse said. “The innovative possibilities around intelligent price science and our big data analytical capabilities with a SaaS-based, feature-rich CPQ solution are virtually endless.” Gartner also forecasts in its April 2017 Magic Quadrant for Digital Commerce, “by 2018, 40% of B2B digital commerce sites will use price optimization algorithms and configure, price and quote tools to dynamically calculate and deliver product pricing.”
“After 15 years delivering quality CPQ solutions to our manufacturer, distributor and OEM partners that effectively reduce cost, improve process and increase revenue, we are extremely excited to add price optimization to the mix,” said Sean Myers, CEO, Endeavor. “The new technology will provide front line enterprise sales people with the insight necessary to make smart, timely, and ultimately more profitable deals, while also improving the overall customer experience.”
In addition to customer segmentation capabilities that define intelligent pricing, Vendavo margin optimization solutions also provide insights into margin leakage and profitability measures with Profit Analyzer™ and discount programs with Incentive Manager™. These and other features integrated with EndeavorCPQ enable maximum deal velocity and profitability.
Global private equity firm, Francisco Partners funded the deal that closed July 3, 2017. Terms were not disclosed.
About Endeavor Commerce
Celebrating its 15th anniversary in 2015, Endeavor is a leader in cloud-based Configure-Price-Quote (CPQ) software solutions. EndeavorCPQ automates the quote-to-order process, empowering sales professionals to spend more time in front of customers and less time behind their desk. A cloud-based, go-anywhere software, EndeavorCPQ pulls data from leading CRM and ERP systems, eliminating errors and ensuring accurate backend updates. To schedule a demo or learn more, visit EndeavorCPQ.com.
About Francisco Partners
Francisco Partners is a leading global private equity firm, which specializes in investments in technology businesses. Since its launch over 15 years ago, Francisco Partners has raised over $10 billion in capital and invested in more than 150 technology companies, making it one of the most active and longstanding investors in the technology industry. The firm invests in opportunities where the firm’s deep sectoral knowledge and operational expertise can help companies realize their full potential. For more information, visit http://www.franciscopartners.com.
ABOUT VENDAVO
Vendavo solutions use big data analytics to help the world’s largest companies in a variety of industries to optimize and manage complex pricing and deal terms. By delivering simple, actionable guidance to the front lines, Vendavo enables salespeople to negotiate confidently and sell more profitably. Vendavo solutions are deeply embedded in customer processes and drive significant value and return on investment by enhancing pricing discipline, optimizing pricing decisions using a variety of idiosyncratic factors, and streamlining B2B deal management.