Software package Firm Coupa to Obtain Offer-Chain Tech Provider Llamasoft

Coupa Application Inc.

is buying source-chain arranging firm Llamasoft Inc. for about $1.5 billion, as the pandemic delivers larger attention to technologies that assists organizations make operations from raw elements sourcing to distribution more resilient.

The acquisition expands the source-chain capabilities of San Mateo, Calif.-centered Coupa, whose cloud-based company application aids companies manage their small business expending. The deal, which Coupa expects to shut Monday, will give customers this kind of as BMW Team AG,

Airbus SE

and

Procter & Gamble Co.

obtain to Llamasoft’s synthetic intelligence-run technologies.

Llamasoft’s application helps corporations design, layout and enhance their provide-chain networks, using AI and algorithms to map out situations and mitigate probable pitfalls. The Ann Arbor, Mich., firm is backed by private-fairness fund TPG Capital, which took a stake in 2017, and counts

Boeing Co.

Danone SA

and

House Depot Inc.

amongst its clients.

This is Coupa’s 3rd acquisition this yr. The company’s platform will help businesses regulate procurement, invoicing, payments, sourcing and other expending capabilities and has far more than $1.95 trillion in cumulative shelling out by its consumers underneath administration.

“We’ve pulled all these siloed procedures together,” Coupa CEO Rob Bernshteyn explained. “We’re like

Salesforce,

but on the supply-chain administration side of the home.”

The offer, over time, will give Coupa’s shoppers the capacity to redesign and prepare their offer chains as a result of Llamasoft’s application, and let Llamasoft’s purchasers to execute provide-chain conclusions and manage supplier relationships by Coupa’s platform, which has a network of extra than 5 million suppliers.

Functions this yr, such as shortages of merchandise from house staples to industrial factors, amid coronavirus-driven lockdowns, demonstrated that firms have to be ready to answer promptly to source volatility and shifting desire, Mr. Bernshteyn reported. “Supply chains have to have to be sorted out in 2021 and 2022, and we want to be a strategic lover to the organizations,” he claimed.

The turmoil in offer chains is drawing extra expense in computer software and engineering that can assistance businesses decrease dangers and make in backstops, these as keeping further stock or introducing suppliers in various locations.

Supply-chain software company E2open LLC stated last thirty day period it designs to go community via a merger with a blank-verify business that would value E2open at about $2.57 billion. In April, personal-equity company

KKR

& Co. invested $100 million in o9 Options Inc., valuing the cloud-based mostly source-chain administration software maker at a lot more than $1 billion.

Compose to Jennifer Smith at [email protected]