Why did Magnitude Software® acquire Z Option?
Magnitude’s acquisition of Z Option – its second acquisition in 2018, fourth in just over a year and eighth in total – expands its portfolio of solutions in the SAP marketplace and aligns with its commitment to serve customers by delivering data access, management, analytics and reporting solutions that unify and simplify data management for enterprise applications and ERPs like SAP for real operational efficiencies.
One of the largest global ERP providers with a 23% market share, SAP represents a significant market opportunity for both Magnitude and Z Option. Additionally, Z Option will enable Magnitude to deliver even greater value to the Office of Finance, a key customer for solutions such as Innowera Process Runner, Magnitude SourceConnect, Magnitude RapidDecision and Magnitude Connectivity (Simba) solutions.
Together, Z Option and Magnitude provide solutions that reduce the cost of using and implementing SAP by: integrating common SAP functions with Microsoft Excel®, simplifying data access and management, and enabling visibility into critical data for SAP users – all of which increase employee productivity. The combined portfolio facilitates faster, more accurate reporting and analytics across customers’ fragmented application environments.
Z Option allows organizations to streamline financial data entry functions by providing a flexible and intuitive spreadsheet interface for collecting and posting transactions to SAP. Targeted at office of finance users, Z Option solves many common SAP data entry problems from simple, recurring general journal entries to allocations thousands of lines long. The Company, similar to Magnitude, has a strong commitment to customer success and is highly regarded for the loyalty and engagement of their customer base.
Joining an experienced, customer-focused company like Magnitude will enable Z Option to scale its go-to-market initiatives, expedite its product roadmap, and more effectively support its growing global customer base.
What does this mean for Z Option customers?
Magnitude’s highest priority is customer success, and that includes taking care of Z Option’s loyal base of customers. The combined strengths of Magnitude and Z Option will provide customers with better and new ways to harness the fragmented digital landscape for business benefit.
The acquisition offers numerous benefits to Z Option customers including:
- Greater choice in solutions:Magnitude offers Z Option customers solutions to support their packaged analytics and reporting needs; a rapid, low-cost, low-risk implementation of SAP S/4HANA Central Finance; and support for enterprise-wide data management initiatives. Z Option customers will also have access to Magnitude connectivity (Simba), PIM for commerce, and master data management solutions.
- Continued customer success:Magnitude is committed to its customers and their success, applying its expert team, innovative solutions and technology-enabled support to ensure the best possible outcomes. Z Option’s loyal, global customer base will continue to be engaged and receive exceptional service and support. Magnitude and Z Option remain focused on helping our customers accelerate time-to-value, reduce costs and risks, and increase productivity – maximizing the productivity gains promised by enterprise platforms like SAP and Oracle.
- Increased scale and go-to-market capabilities:Magnitude brings scale to Z Option and will use its deep go-to-market expertise to accelerate the pace of product innovation, market reach and customer success. Over time, the companies will realize additional go-to-market synergies via bundling opportunities with Innowera Process Runner, Magnitude RapidDecision and Simba solutions to increase value for customers.
What does this mean for Z Option partners?
Magnitude has a best-in-class global network of partners and looks forward to welcoming Z Option partners to its network. Partners will realize several benefits as Magnitude expands Z Option’s market presence and revenue stream: opportunities to grow their businesses given the new capabilities; scale for go-to-market; portfolio expansion with new Z Option solutions; and the addition of other Magnitude solutions to their offerings.
What are the foundations for company success in 2019?
The acquisition of Z Option reflects the strength of Magnitude’s growth strategy, ability to execute, and performance. Recognized on the 2018 Inc. 5000, Magnitude recently announced the tripling of its recurring revenue, profit and global team over three years. Magnitude is well positioned for continued momentum in 2019, closing out a strong fourth quarter in 2018 with a growing global customer base including many of the Fortune 500.
What does this mean for Magnitude customers?
Magnitude customers can immediately benefit from Z Option’s solutions, particularly Office of Finance users requiring a flexible and intuitive spreadsheet interface for collecting and posting transactions to SAP. Moving forward, as the companies combine their strengths, additional bundled offerings will be available to customers to further enable them to address application data management pain points across the enterprise.
How does this effect Magnitude’s SAP plans?
The Z Option and Magnitude portfolios are largely complementary for SAP and within the reporting and analytics segment. Z Option provides additional deep knowledge and expertise in the SAP ecosystem, increasing the strength and breadth of Magnitude’s solution suite.
The combination of Magnitude and Z Option facilitates faster, more accurate data management, reporting and analytics across SAP customers’ fragmented application environments from the convenience of Excel. Z Option’s GLSU and Budget Loader solutions complement Magnitude’s growing SAP Application Data Management solution set, which includes agile SAP data management and analytics from Magnitude’s Innowera, Every Angle and SourceConnect solutions. Magnitude’s Innowera solutions will further increase the productivity of GLSU users as they seek to perform bulk data management and journal entries in their SAP environments through workflow and governance capabilities already available in Magnitude’s Innowera solutions.
Z Option enables Magnitude to expand its value to the Office of Finance, which presents cross-sell opportunities with the Company’s existing SAP solutions.
How will this impact the Z Option leadership and team?
Magnitude considers the Z Option team a valuable asset as the companies move forward together; as such there are no leadership changes planned. Employees, customers and partners can expect a “status quo” environment with exciting new opportunities available for everyone. Both organizations look forward to learning from and working with each other as the organizations become integrated over time.
Will there be any changes to the current service level or existing customer contacts?
No. All existing support and service arrangements will continue without interruption and Z Option’s customers will work with their existing Support and Engineering contacts.
Ensuring Z Option’s existing and soon-to-be customers are successful is a Magnitude priority. Z Option will operate within the Magnitude family, continue to service and support existing products, and commit resources to enhancing product value for customers.
Magnitude recently completed the acquisition of Every Angle; how long before customers see the benefit of the integration of all these acquisitions?
Magnitude is committed to integrating the organizations, processes and technologies of all its acquisitions over time so that customers have access to an innovative and broader set of capabilities from Magnitude. Magnitude’s motto for acquisition is “first, do no harm”. Magnitude follows a process that is focused on preserving “best of both” companies and is customized for every acquisition. Magnitude remains steadfast in its commitment to provide customers with software and solutions that drive real business results in an increasingly dispersed application environment characterized by data fragmentation and a demand for self-service.
Who should I contact if I have further questions on the acquisition?
While we will continue to be proactive in communicating to customers and partners any changes that directly affect them. Please refer to the information below if you have questions regarding the acquisition:
Z Option Customers – Jim Halepaska
US Direct – +1 (972) 315-8800 x205
Magnitude Customers – Fred Hermans
Mobile: +(31) 622452247
For additional information regarding the acquisition, please refer to our press release.
If you would like to stay informed of the latest Magnitude Software news and developments, please visit www.magnitude.com.
Additional contact information for both Z Option and Magnitude are as follows:
General Questions – Z Option
See our contact information and forms here.
Press & Media Contact:
Sydney Huffman, Scratch Marketing + Media