Supply Chain Matters This Week in Supply Chain Tech kicks off our 2024 series with two acquisition announcements related to multiple supply chain providers.
Included providers in this update are Sphera and SupplyShift, along with Optilogic and Insight, Inc.
Sphera Acquisition of SupplyShift
Sphera, a provider of environmental, social and governance (ESG) performance and risk management software and consulting services has announced the acquisition of SupplyShift, a supply chain sustainability software company.
Founded in 2016 and headquartered in Chicago, Sphera is a portfolio company of Blackstone, a U.S.-based alternative asset investment company that focuses on private equity, technology and innovation. In 2021, this column highlighted Blackstone’s acquisition of the company for $1.4 billion. This SaaS software provider has a noted 7,000 customer with a vertical industry presence spanning chemicals and life science, government, manufacturing and metals and mining industry sectors.
Founded in 2012 and headquartered in Santa Cruz, California, SupplyShift has established a supply chain network of over 100,000 suppliers, where buyers and suppliers engage and share information quickly in order to manage risk and facilitate supplier regulatory compliance. The company is backed by a number of investors and has undergone funding rounds in 2018 and 2021. The software provides supply chain transparency and supplier mapping across supply chain tiers as well as data analytics, supplier scoring and traceability. SupplyShift is noted as acquiring customers and business partners around the world, and the company’s portal is used across industries, from global retailers to Fortune 500 brands..
In the announcement, Eli Nagler, Senior Managing Director, and Kelly Wannop, Managing Director, at Blackstone, indicated, “We are excited to welcome SupplyShift to Sphera and continue investing in this company’s innovative solutions. This planned acquisition supports our commitment to Sphera’s accelerated growth and will bolster the company’s supply chain capabilities for its customers moving forward.”
Sphera CEO Paul Marushka also indicated: “Bringing SupplyShift’s portal into the Sphera family will expand our current offerings and enable us to provide unparalleled Scope 3 and ESG tracking and reporting capabilities. We are pleased to welcome SupplyShift’s customers, colleagues and solution to Sphera and look forward to helping our combined customer base accurately track and report their Scope 3 emissions and be compliant.”
No financial data was disclosed regarding the acquisition.
Optilogic Acquisition of Insight Inc.
Supply chain network design software provider Optilogic has announced that it has acquired Insight, a software provider with a history of more than 40 years in the supply chain network design space.
Founded in 2018, Ann Arbor, Michigan based Optilogic provides Cloud-native supply chain design application termed Cosmic Frog that is designed to enable businesses to evaluate trade-offs across financial performance, service levels, and systemic risk. In 2023, this tech secured $13 million in added financing, led by MK Capital, a venture capital firm. The funding was aimed toward expanding the company’s go-to-market programs in consumer goods, retail, logistics, manufacturing, and distribution industries, as well as further development of its Cosmic Frog supply chain design platform.
The company’s founder, Donald Hicks, was the prior Co-Founder of supply chain analytics technology provider Llamasoft, which was later acquired by Coupa Software in 2020.
Insight software was reportedly an early leader in supply chain optimization and the first to offer an end-to-end detailed supply chain network optimization tool. The company was one of the first to deploy MIP solvers in daily and weekly planning applications and pioneered integrated transportation routing algorithms with network design. The provider’s SAILS flagship application introduced supply chain vulnerability analysis. According to the announcement, Insight Co-Founder and CEO Jeff Karrenbauer will reportedly continue to provide advisory services.
No financial details were shared regarding this acquisition.
As a side note, in our research arm’s forthcoming 2024 Predictions for Industry and Global Chains advisory, we will be including a prediction on the growing importance of ESG and supply chain network mapping technologies in supply chain technology growth opportunities.
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