E2open, a provider of cloud-based, end-to-end supply chain management software, has agreed to merge with CC Neuberger Principal Holdings I, a blank check company formed and led by Chinh Chu, Douglas Newton, Charles Kantor and other senior professionals of CC Capital and Neuberger Berman. When the transaction closes, E2open will go public and trade its stock on the New York Stock Exchange under the ticker symbol “ETWO”. Michael Farlekas, who has served as CEO of the company since 2015, will continue to lead the business post-transaction.
AUSTIN, Texas – October 14, 2020 – E2open (the “Company”), a leading network-based provider of 100% cloud-based, end-to-end supply chain management software, today announced it has entered into a business combination agreement with CC Neuberger Principal Holdings I (NYSE: PCPL), a publicly traded special purpose acquisition company. Upon closing of the transaction, E2open will become a publicly traded company, and it is expected that its common stock will be listed on the New York Stock Exchange under the symbol “ETWO”. Michael Farlekas, who has served as CEO of the Company since 2015, will continue to lead the business post-transaction.
E2open provides a fully cloud-based software platform to orchestrate complex global supply chains. The Company’s end-to-end SaaS solutions drive compelling value and ROI for its diverse and sophisticated blue-chip customers. Additionally, E2open benefits from attractive secular tailwinds as companies endeavor to accelerate growth, reduce costs, increase visibility, and drive improved resiliency across their supply chains in an increasingly complex global economy. The Company’s software combines networks, data and applications to provide a deeply embedded, mission-critical platform that allows customers to optimize their supply chain from channel shaping and business planning to logistics and global trade to manufacturing and supply management.
“The need for end-to-end visibility across the entire supply chain has never been more important than in the current business environment,” said Mr. Farlekas. “Our software platform, powered by real-time data, enables our customers to orchestrate more agile and resilient supply chains, and we are excited about the opportunity to accelerate growth going forward. We are thrilled to partner with the distinguished team of investors at CC Capital, Neuberger Berman, Insight Partners, and Evergreen Coast Capital Corp. (Elliott’s private equity affiliate) to capitalize on the growing opportunity in the supply chain management software space.”
“We founded CC Neuberger to build on our philosophy of establishing long-term partnerships with high-quality businesses committed to innovation and sustainable growth where we can add substantial value,” said Chinh Chu and Douglas Newton, Co-Founders and Senior Managing Directors of CC Capital. “E2open precisely fits that criteria, and we look forward to working in partnership to generate long-term value for E2open and its shareholders as a publicly traded company.”
“We think that E2open is an exceptional business poised to accelerate growth and deepen its penetration of significant whitespace opportunities with existing and new customers,” said Charles Kantor, Managing Director and Senior Portfolio Manager of Neuberger Berman. “E2open’s mission-critical software solutions have created a recession-resilient business model that has not only performed well throughout the global pandemic, but is also uniquely positioned to benefit from increased demand for supply chain management solutions.”
The Board will be comprised of nine directors, including Chinh Chu from CC Capital and Ryan Hinkle, a Managing Director of Insight Partners, the Company’s current majority investor that will remain a large shareholder post-transaction. Stephen Daffron, current President of Dun & Bradstreet and former CEO of Interactive Data Corporation, and Eva Huston, current Chief Strategy Officer of Duck Creek Technologies and former CFO of Verisk Analytics, will also join the Board upon closing of the transaction. A majority of the directors will be independent, consistent with the applicable listing rules of the New York Stock Exchange.
The transaction has been unanimously approved by the Board of Directors of CC Neuberger Principal Holdings I, as well as the Board of Directors of E2open, and is subject to the satisfaction of customary closing conditions, including the approval of the shareholders of CC Neuberger Principal Holdings I.
The total equity investment of $1.1 billion raised in this transaction will be used to pay down existing debt, purchase a portion of the equity owned by existing E2open owners and conservatively capitalize the Company’s balance sheet. Upon the closing of the transaction, CC Neuberger Principal Holdings I will domesticate as a Delaware corporation and the name of CC Neuberger Principal Holdings I will be changed to E2open Parent Holdings.
Additional information about the proposed transaction, including a copy of the merger agreement and investor presentation, will be provided in a Current Report on Form 8-K to be filed by CC Neuberger Principal Holdings I with the Securities and Exchange Commission (“SEC”) and available at www.sec.gov.
Conference Call Information
CC Neuberger Principal Holdings I’s investor conference call and presentation discussing the transaction can be accessed by visiting www.netroadshow.com and entering the passcode open20e. A transcript of the call will also be filed by CC Neuberger Principal Holdings I with the SEC.
Credit Suisse is serving as lead financial advisor, and Lazard is also serving as financial advisor to E2open. Morgan Stanley & Co. LLC and Goldman Sachs are acting as M&A advisors to CC Neuberger Principal Holdings. Goldman Sachs is acting as lead placement agent and lead capital markets advisor, and Credit Suisse and Morgan Stanley & Co. LLC are also placement agents for CC Neuberger Principal Holdings I. Willkie Farr & Gallagher is acting as legal counsel to E2open, and Kirkland & Ellis LLP is acting as legal counsel to CC Neuberger Principal Holdings I.
At E2open, we’re creating a more connected, intelligent supply chain. It starts with sensing and responding to real-time demand, supply and delivery constraints. Bringing together data from clients, distribution channels, suppliers, contract manufacturers and logistics partners, our collaborative and agile supply chain platform enables companies to use data in real time, with artificial intelligence and machine learning to drive smarter decisions. All this complex information is delivered in a single view that encompasses your demand, supply and logistics ecosystems. E2open is changing everything. Demand. Supply. Delivered.
About CC Neuberger Principal Holdings I
CC Neuberger Principal Holdings I is a special purpose acquisition company that completed its initial public offering in April 2020, raising $414 million in proceeds. Formed and led by Chinh Chu, Douglas Newton, Charles Kantor and other senior professionals of CC Capital and Neuberger Berman, CC Neuberger Principal Holdings I is a blank check company formed for the purpose of entering into a merger, share exchange, asset acquisition, share purchase, reorganization or similar business combination with one or more businesses. CC Neuberger Principal Holdings I’s Class A common shares, units, and warrants trade on the NYSE under the symbols “PCPL”, “PCPL.U” and “PCPL WS” respectively.