Business spend management technology provider Coupa Software announced today that it has acquired supply chain design and analytics technology provider Llamasoft for a purchase price of approximately $1.5 billion. The news is obviously one of the top this far in the supply chain technology landscape.

According to the announcement, this acquisition is aimed to strengthen Coupa’s supply chain support capabilities in the area of Business Spend Management. From our initial Supply Chain Matters lens, it would appear that such a synergy is difficult to understand given that both providers target different strategic buyers and user communities.

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As we pen this blog at the mid-morning point of today, Coupa’s stock is trending down 7 percent on the news of this acquisition.

According to a Form 8k filed in conjunction with this acquisition, the transaction appear to be a plan of merger and acquisition. The transaction consists of $795 million paid in cash including repayment of debt and expenses, with the remainder of payment in the form of over 2.4 million shares of Coupa stock.

At this point there does not appear to be a scheduled briefing regarding further details of today’s announcement and thus we will defer any additional commentary until such information is provided. Existing Llamasoft customers will obviously need to fully understand the strategy and motivations behind today’s news.

 

Llamasoft Background

Supply Chain Matters has provided detailed coverage of Llamasoft’s technology and customer support capabilities for many years, and this Editor has had the opportunity to attend several annual customer events.

In October of last year the network design, planning and analytics technology provider announced the acquisition of Opex Analytics LLC, a Chicago based provider of artificial intelligence-based applications for Fortune 500 companies. The acquisition reportedly had created a combined company offering productized applications to global organizations to accelerate adoption of artificial intelligence (AI) with deep expertise in machine learning (ML). Opex Analytics continued to operate under its own branding but as a LLamasoft Company.

In August, the technology provider announced a strategic partnership with China based JD Logistics, which is the logistics business arm of China’s online retail platform JD.com. That announcement noted that JD Logistics would exclusively deliver and integrate LLamasoft’s software applications as part of its existing service and technology offerings to select manufacturers, retailers and logistics providers in China.

In April of 2018, supply chain sales executive Razat Gaurav joined the company as its new Chief Executive Officer and Member of the Board of Directors succeeding Founder and then CEO Don Hicks, who had developed a persona for customers. Gaurav had previous multiple executive roles at JDA Software (now BlueYonder Software), where he served as Senior Vice President and Chief Revenue Officer and came to JDA from the prior acquisition of supply chain planning software provider i2 Technologies where he rose to the role of Senior Vice President of Sales.

Bob Ferrari

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