Insight Partners said to shop supply-chain software provider E2Open

Insight Partners is seeking a buyer for E2Open, a software provider for supply-chain management with nearly $100 million in Ebitda, sources familiar with the process told Buyouts.

Insight, which has more than $20 billion in AUM, took E2Open private in February 2015 for $273 million.

The Foster City, California, company provides cloud-based on-demand software services for enterprises to procure, produce, sell and distribute products across global trading networks.

E2Open’s clients include Oracle, Canon, Caterpillar, Gap, Unilever, IBM, Lenovo, L’Oreal and HP, among others.

Valuations in the vertical application software space, which supports specific business processes and targets a smaller number of users with specific skillsets, have gone up to 20x earnings, a source said.

Such a valuation would price this transaction at nearly $2 billion.

While large private equity firms may express interest in the company, E2Open is more likely to attract strategics like Honeywell, Fortive and Roper Technologies, the source said.

Credit Suisse and Lazard are advising Insight Partners on the sale, according to sources. First-round bids are due around late April or early May, one source said.

An Insight Partners spokesperson declined comment.

In November 2017, E2Open acquired Zyme, a channel data management company.

Action Item: See E2Open’s take-private announcement here.