TPG Capital invested in LLamasoft, which provides supply chain modeling and design software. The deal marks TPG’s second investment in the supply chain technology segment, following its 2016 investment in Transporeon.
LLamasoft, the global leader in supply chain modeling and design software, announced today an investment by TPG Capital, the global private equity fund of leading alternative asset firm TPG.
LLamasoft announces new partnership with TPG Capital.
With over 700 customers around the world, LLamasoft provides innovative software solutions that help companies think more clearly about their supply chain operations and make better decisions to improve service, reduce cost and mitigate risk. LLamasoft’s technology includes Supply Chain Guru, the global standard for Supply Chain Design, and this year LLamasoft is rolling out multiple new disruptive applications in the areas of Supply Chain Visibility, Planning, and Demand Modeling. The innovation behind these new applications was driven by collaboration with clients across multiple industries, and fueled by an investment from Goldman Sachs’ Merchant Banking Division in 2015.
“This investment and partnership with TPG is a great thing for our customers and the supply chain software market as a whole because we share the vision that supply chain leaders need new disruptive technology that provides better access to information and more advanced capabilities to analyze and optimize their entire supply chain,” said Don Hicks, CEO of LLamasoft. “We’re proud of the leadership position we’ve established and of our pipeline of innovative products set for release this year. We look forward to continuing to drive value for our customers by leveraging the expertise and operational know-how of our new partners at TPG.”
“Operating in a marketplace that puts significant value on efficiency and customer satisfaction, companies are increasingly regarding their supply chain as strategic. As the undisputed leader in supply chain design software, LLamasoft is set to benefit from an omni-channel world where supply chains matter,” said Malte Janzarik of TPG Capital. “The feedback we have received from customer interviews has been outstandingly positive. Customers have increasingly been using the LLamasoft software for their more frequent planning needs in addition to their supply chain design use cases. We are excited to back co-founders Don Hicks and Toby Brzoznowski in disrupting the supply chain space through this ‘Planning by Design’ approach.”
This transaction builds on TPG’s track record of partnering with companies that are embracing software and technology to improve business efficiency. LLamasoft marks TPG’s second recent investment in the supply chain technology space, following its 2016 investment in Transporeon, a leading European cloud-based business network for industrial logistics. Some of the firm’s other investments in platforms and software companies include Advent Software, Airbnb, Eze Software, IMS Health, McAfee, Sabre, Uber and Vertafore.
The transaction is expected to close in the second quarter of 2017 and is subject to customary closing conditions, including regulatory approval. Goldman Sachs, which invested in 2015, will remain a significant shareholder. TPG was advised by Barclays, Kirkland & Ellis and Deloitte while the sellers were advised by DLA. Additional terms of the transaction were not disclosed.
About LLamasoft, Inc.
LLamasoft software helps organizations worldwide design and improve their supply chain operations. LLamasoft solutions enable companies across a wide range of industries to model, optimize and simulate their supply chain network, leading to major improvements in cost, service, sustainability and risk mitigation. Headquartered in Ann Arbor, Michigan, LLamasoft is a leader in supply chain excellence and innovation, advancing technology focused on continuous improvement of enterprise supply chains for the world’s largest organizations.
TPG is a leading global alternative asset firm founded in 1992 with more than $72 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, Istanbul, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit http://www.tpg.com/