Accel-KKR finalizing sale of supply-chain software provider TrueCommerce

The company accepted an acquisition offer after receiving final bids last week, but the signed agreement is pending closure, people familiar with the deal said.

Accel-KKR-backed TrueCommerce, a supply-chain software provider, has found a new owner, sources familiar with the process told PE Hub.

The company accepted an offer after receiving final bids last week, but the signed agreement is pending closure, the people said.

William Blair and PJ SOLOMON acted as sell-side financial advisors on the process, they said.

TrueCommerce, based in Pittsburgh, Pennsylvania, is a cloud-based business-to-business commerce and supply-chain network. The company integrates electronic data interchange (EDI), inventory management, fulfillment, and digital storefronts and marketplaces to clients’ business systems.

The company produces between $35 million and $40 million in EBITDA and around $100 million in revenue, the sources said. The sale of TrueCommerce is likely to fetch AKKR north of $700 million, the sources estimated.

TrueCommerce has performed well through covid-19 and has been growing at a high-single-digits to low-double-digits rate, making it an attractive investment for a private equity firm, the people said.

Interest in the company was also accelerated by another sought-after business, GTCR-backed Commerce Hub, the sources said. The e-commerce software provider kicked off a process in mid-July via Morgan Stanley.

Bloomberg reported in July that Commerce Hub hired the bank to pursue an IPO. PE Hub subsequently learned that Commerce Hub is likely to evaluate a sale to a strategic or another PE firm before considering an IPO.

While smaller in size, TrueCommerce is another player in the supply-chain software space that has found itself a beneficiary of covid-19 and the hastening of online shopping and e-commerce.

Accel-KKR has deep roots in the supply-chain software space.

The firm in 2017 sold HighJump, a software supply-chain management specialist and a sister company of TrueCommerce, to Körber AG.

The sale of HighJump was valued at $750 million, translating into a 6x return on invested capital for AKKR, PE Hub reported.

AKKR invested in both HighJump and TrueCommerce in 2012. The firm managed to hold on to its investment in TrueCommerce by reinvesting in the company through Accel-KKR Capital Partners CV III, a continuation vehicle intended to support additional growth investments in select portfolio companies.

The firm closed its latest fund in September 2019 on $1.39 billion, announcing its reinvestment in the company at that time.