CombineNet

About CombineNet

CombineNet, Inc. operated as a specialized provider of advanced e-sourcing solutions, originating from research at Carnegie Mellon University. The company was founded in 2000 by Tuomas Sandholm, a Professor of Computer Science at the university, who leveraged his deep research in AI, economics, and operations research to address complex procurement challenges. Sandholm's academic work on optimization-powered electronic marketplaces, dating back to 1989, formed the technological bedrock of the company. He served as the company's initial CEO, Chairman, and Chief Scientist.

The firm's core business centered on its flagship Software-as-a-Service (SaaS) platform, the CombineNet Advanced Sourcing Application Platform (ASAP®). This platform was engineered for large corporations, particularly Forbes Global 2000 companies, to manage high-value, complex strategic sourcing events. It utilized proprietary optimization algorithms, backed by 22 patents, to analyze intricate supplier bids based on multiple factors beyond just cost, including risk, timing, and value. This allowed clients to conduct detailed 'what-if' scenario modeling to arrive at optimal supplier award decisions. The business model was subscription-based, providing clients like Procter & Gamble, Coca-Cola, and Johnson & Johnson with recurring access to the e-sourcing platform and its associated modules for Spend Analytics and Contract Management.

The CombineNet ASAP platform offered several distinct features. Its Expressive Bidding® capability allowed suppliers to submit more nuanced and flexible proposals, while optimization-enabled e-Auctions created a competitive real-time environment. The system was designed to handle sourcing for a wide array of spend categories, from direct and indirect materials to transportation and services. A significant milestone was the company's acquisition by SciQuest, Inc. (now known as Jaggaer) on September 3, 2013, for approximately $43 million. At the time of the acquisition, CombineNet had a global customer base of around 100 large enterprises and was generating approximately $1 million in non-GAAP revenue per month. The acquisition integrated CombineNet's advanced sourcing capabilities into SciQuest's broader spend management suite.