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Multinational Technology Company Gets Support with Divestiture Contract Analysis of over 6000 Contracts

(February 2023)

Company Profile

  • Industry: Technology
  • Size: 36k employees
  • Revenue: 17.4 billion USD
  • Region: Worldwide
  • Market: Mid-Market
Analysis:
10,000
number of contract pages distilled to support successful divestiture

EXECUTIVE SUMMARY

This multinational technology company employs 36,000 professionals, all dedicated to empowering businesses to capitalize on emerging applications and power the fourth industrial revolution.  A planned divestment required 6,000 documents to be reviewed before the six-month deadline and the business’ team lacked sufficient specialist software contract expertise. Experts from Anglepoint leveraged decades of experience to distill over 10,000 pages of contracts into clear, simple recommendations to support divestiture success.

The Challenge

Overwhelming volume of documents to process for divestiture

This client was divesting two multi-billion dollar businesses, involving the transition, termination, or re-negotiation of contracts for over 200 vendors.  They needed to distill the complex high volume of documentation into simple, actionable recommendations for their vendor management team with short timelines.  With over 6,000 documents to review, and only six months before the divestiture dates, the client’s team realized they lacked not only the expertise but the resources for rapid delivery capability to ensure every detail was reviewed.  They needed outside help to augment their team.

It’s a common tactic for software publishers to use compliance issues associated with merger, acquisition and divestiture activities as a sales tactic to drive additional revenue. This client needed to ensure that they had accurate entitlement and consumption data for all publishers and also needed a clear understanding of their contractual rights to mitigate the potential financial risks.

The Solution

10,000 pages of documents distilled

Anglepoint utilized an agile Contract Analysis framework, focused on a rapid “prioritize-analyze-recommend” approach.  The client gave Anglepoint large volumes of uncategorized documents that were analyzed and categorized against vendors on a priority basis to build a prioritized publisher list. All the documents received were reviewed against a structured framework with several areas in focus including compliance, term and termination, pricing, and uplift and usage rights.

Anglepoint’s experts leveraged decades of experience to distill over 10,000 pages.  This required the knowledge of 200 different publishers to provide over 3K recommendations at both detailed and executive level. These were delivered to the client for executive level consumption, and read-out bi-weekly to the client team.  The client then took these recommendations (executive and detail) to proactively negotiate with vendors.

RESULTS

A successful and informed divestiture

Anglepoint enabled an informed divestiture for this client, putting them in control. They ensured consistent support and access was in place before, during, and after the divestiture for all stakeholders. The proactive negotiations leveraged user definitions, notice periods and price uplifts to deliver an optimized and more favorable commercial and contractual agreement. By removing or clarifying audit terms they placed the client in a stronger position to mitigate future audit risk and risk associated with the divestment. 

The client continues to work with Anglepoint to provide training and managed services for priority vendors.

With over 6,000 documents to review, and only six months before the divestiture dates, the client’s team realized they lacked not only the expertise but the resources for rapid delivery capability to ensure every detail was reviewed. 

“Our leadership really understands the importance of having a centralized software asset management program and putting in the investment from a budget perspective. They see the value in the work that Anglepoint does.”
– Software Asset Manager at a Multinational Telecom Organization