Accel-KKR scores its largest return with Jaggaer sale

Accel-KKR made more than 5x its money with the sale of Jaggaer, a source said.

The Menlo Park, California private equity firm said Aug. 15 that it completed the sale of Jaggaer to Cinven, a European buyout shop. The transaction, announced in July, valued Jaggaer at $1.6 billion, the person said. Cinven acquired a majority of Jaggaer, while Accel-KKR retained a minority.

Jaggaer is the former SciQuest. Accel-KKR took the Triangle Park, North Carolina, company private in 2016, paying $17.75 a share or about $509 million.

Jaggaer provides procurement software for large and medium-sized businesses. Customers include McDonald’s, DHL and Merck. In 2017, Jaggaer acquired Pool4Tool, of Vienna, Austria, and BravoSolution, of Milan, which broadened its offerings to include indirect procurement while expanding its geographic presence. This resulted in Jaggaer’s revenue nearly tripling during Accel-KKR’s tenure, the statement said.

The Jaggaer sale is Accel-KKR’s largest realization to date, the person said. The investment came from Accel-KKR’s fourth and fifth buyout funds, as well as its second structured capital fund. Accel-KKR Capital Partners IV raised more than $800 million in 2012, while Accel-KKR Capital Partners V closed on $1.3 billion in 2015. Accel-KKR Structured Capital Partners II, which was renamed Accel-KKR Growth Capital Partners II, collected $325 million in 2014.

Accel-KKR invests in middle-market software and technology-enabled services businesses. The PE firm is seeking to raise $2.55 billion for its sixth flagship, Buyouts reported in May.

Cinven, of London, has completed more than 130 investments since its founding in 1977. The buyout shop invests in North American and European companies in sectors including healthcare, consumer as well as technology, media and telecommunications. In May, Cinven’s seventh flagship closed on its 10 billion euro ($11 billion) hard cap.

Action Item: For more information, contact Tom Barnds, co-founder of Accel-KKR and a managing director, by emailing him here.