KKR Invests in AI Software Maker O9 Solutions
April 28 2020 - 7:29AM
Dow Jones News
By Laura Cooper
KKR & Co.'s technology growth fund has taken a minority
stake in o9 Solutions Inc., valuing the cloud-based supply-chain
management software maker at more than $1 billion.
The private-equity firm invested $100 million in o9 Solutions
through its KKR Next Generation Technology Fund II, which closed in
January on $2.2 billion.
KKR's investment in o9 closed last week and marks the company's
first external investment.
This deal is KKR's fourth from its second tech growth fund,
according to Jake Heller, the co-head of KKR's Next Generation
Technology Growth team in the Americas. Investments from the fund
generally range between roughly $50 million and around $200
million.
The planning software developed by o9 Solutions uses artificial
intelligence algorithms that companies such as Anheuser-Busch InBev
SA, Caterpillar Inc. and Walmart Inc. utilize to help manage their
end-to-end supply chain. The company says its cloud-based software
aids in evaluating supply chains, estimating demand and analyzing
such financial operations as paying vendors and communicating with
stakeholders in the supply chain.
O9 Solutions has increased its annual recurring revenue "well
north of 100%" in the past year, according to Mr. Heller.
Chakri Gottemukkala, chief executive and co-founder of o9
Solutions, said that he expects the partnership with KKR to help
the business expand into countries such as China, Japan and South
Korea. He indicated that the new capital will also help o9
Solutions invest in marketing, with the goal of reaching a broader
array of customers in terms of both industries and geographies.
Write to Laura Cooper at laura.cooper@wsj.com
(END) Dow Jones Newswires
April 28, 2020 07:14 ET (11:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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