Supply chain planning and S&OP (sales and operations planning) software support provider ToolsGroup announced this week that the company has secured a growth equity investment from technology-investment firm Accel-KKR.
According to the announcement, this added funding comes on the heels of three consecutive years of subscription revenue growth and new customer acquisitions. The software provider has successfully transitioned to a predominantly SaaS revenue model with sustained profitability and deployed software in 46 different countries including a noteworthy presence in Europe.
During 2017, ToolsGroup added 44 new customers and 51 extensions to exiting customer contracts. Among listed customers are American Tire Distributors. Bulgari, Ecolab, Grupo Bimbo, SKF and Telefonica.
This supply chain planning software provider recently partnered with Microsoft to offer its flagship SO99+ software suite entirely on the Microsoft Azure Cloud platform.
Plans call for this added investment to help this supply chain planning technology provider scale to its next level of growth.
Menlo Park California based Accel-KKR, with a reported $4.3 billion in capital commitments tends to invest in companies that the firm believes are well positioned for top and bottom-line growth. The firm has been investing in technology growth companies for the past 15 years. Previous investments included retail and grocery industry on-demand supply chain management platform provider iTrade Network, and supply chain execution software provider High Jump Software. Among current investments are Cloud-based spend management software provider Jaggaer (formerly SciQuest) and Cloud-based B2B platform provider TrueCommerce.
Accel will take a minority shareholder presence with Accel-KKR partner Joe Porten and supply chain software veteran Ross Elliot joining this technology provider’s board of directors. The equity firm has had a history of investments in supply chain management technology providers.
This latest announced investment is yet another example of added private equity investments continuing to flow into the supply chain management focused software and technology segment.
Disclosure: ToolsGroup is a past and current client of The Ferrari Consulting and Research Group and the Supply Chain Matters blog.