Software Firm Coupa to Buy Supply-Chain Tech Provider Llamasoft
By Jennifer Smith
Coupa Software Inc. is buying supply-chain planning company
Llamasoft Inc. for roughly $1.5 billion, as the pandemic brings
greater attention to technology that helps businesses make
operations from raw materials sourcing to distribution more
The acquisition expands the supply-chain capabilities of San
Mateo, Calif.-based Coupa, whose cloud-based enterprise software
helps companies manage their business spending. The deal, which
Coupa expects to close Monday, will give customers such as BMW
Group AG, Airbus SE and Procter & Gamble Co. access to
Llamasoft's artificial intelligence-powered technology.
Llamasoft's software helps companies model, design and optimize
their supply-chain networks, using AI and algorithms to map out
scenarios and mitigate potential risks. The Ann Arbor, Mich.,
company is backed by private-equity fund TPG Capital, which took a
stake in 2017, and counts Boeing Co., Danone SA and Home Depot Inc.
among its customers.
This is Coupa's third acquisition this year. The company's
platform helps businesses manage procurement, invoicing, payments,
sourcing and other spending functions and has more than $1.95
trillion in cumulative spending by its customers under
"We've pulled all these siloed processes together," Coupa CEO
Rob Bernshteyn said. "We're like Salesforce, but on the
supply-chain management side of the house."
The deal, over time, will give Coupa's customers the ability to
redesign and plan their supply chains through Llamasoft's software,
and allow Llamasoft's clients to execute supply-chain decisions and
manage supplier relationships through Coupa's platform, which has a
network of more than 5 million suppliers.
Events this year, including shortages of goods from household
staples to industrial components, amid coronavirus-driven
lockdowns, demonstrated that businesses must be able to respond
quickly to supply volatility and shifting demand, Mr. Bernshteyn
said. "Supply chains need to be sorted out in 2021 and 2022, and we
want to be a strategic partner to the companies," he said.
The turmoil in supply chains is drawing more investment in
software and technology that can help companies minimize risks and
build in backstops, such as holding additional inventory or adding
suppliers in different locations.
Supply-chain software provider E2open LLC said last month it
plans to go public through a merger with a blank-check company that
would value E2open at about $2.57 billion. In April, private-equity
firm KKR & Co. invested $100 million in o9 Solutions Inc.,
valuing the cloud-based supply-chain management software maker at
more than $1 billion.
Write to Jennifer Smith at firstname.lastname@example.org
(END) Dow Jones Newswires
November 02, 2020 09:34 ET (14:34 GMT)
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