“Business marketplace experience provider” LBMX has acquired Buying Group Services in an all-share transaction.
The Ontario-based company announced the acquisition Monday (Jan. 10), saying it “brings together two firms focused on helping independent businesses prosper in a rapidly changing business environment.”
LBMX provides technology for buying groups, group purchasing organizations and purchasing coops, while BGS provides managed services for similar organizations.
The announcement says the arrangement will let LBMX expand its managed services experience and offer new solutions to group customers. It also lets the company provide services such as central payments and PIM data enrichment to independents and suppliers.
Greg Dinsdale, president and CEO of LBMX Inc., said both the two companies share a similar passion in using technology to help independent businesses thrive.
“We are excited to welcome BGS’ current group of buying groups and purchasing cooperatives to our family of independents,” Dinsdale said. “Coming together results in a larger company, which provides the complete solution and creates an unparalleled trading ecosystem for independents, their suppliers and buying groups alike.”
BGS COO Morgan Williston adds that the arrangement makes LBMX “the dominant force in providing platform solutions for independents engaging with their supplier base and provide our current buying groups with a further technological advantage for use in their operations.”
The new company will have a presence in most verticals but will focus on HVAC, electrical, plumbing, building materials, window and door, and food service equipment. The company says the acquisition adds a managed services component to a portfolio that already includes EDI, PIM, and eCommerce solutions.
Read more: Connecting The B2B Payments Dots For The Age Of Digital Marketplaces
PYMNTS examined the world of B2B eCommerce last year in a conversation with Bar Geron, founder and CEO of Balance.
With B2B payments innovation proliferating, new FinTechs continue to emerge to tackle a range of pain points for buyers and sellers. What’s missing, Geron said, is solution specifically made for the B2B eCommerce and digital marketplace platforms.
“There are different companies trying to do different things, but there is no company owning the B2B checkout experience,” he said.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
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