Promise of more efficient procurement drew FTV to invest in LogicSource

FTV Capital is investing $180 million in LogicSource, a provider of procurement services and technology, in a deal announced this morning. The transaction comes at a time when many companies are looking for ways to circumvent supply chain challenges that are slowing the smooth flow of goods. PE Hub spoke with FTV principal Alex Malvone about the deal.

FTV Capital, which backs companies in enterprise technology and services, financial services and payments and transaction processing sectors, said procurement offers vast opportunities.

“It’s a really interesting time to be investing in procurement,” said Malvone.

Procurement, often mired in inefficiencies, has become a key enabling factor in the success of many businesses. LogicSource focuses on sourcing and procurement of indirect goods and services. The company aims to mitigate risk and ensure supply chain continuity through better buying.

FTV reached out to LogicSource’s management to learn more about the business last year. In the past three years, LogicSource’s revenue has grown by almost 220 percent, earning accolades such as being named under Inc’s fastest growing companies in 2020 and 2021.

Malvone said FTV Capital was impressed with how LogicSource drives traction across Fortune 500 companies in a range of sectors, including healthcare, consumer packaged goods and financial services.

Malvone is joining the LogicSource board and expects to support more investment in innovation.

“When you look at just the record levels of inflation and the supply chain challenges that we have seen, having a partner to help an organization navigate that has become more important, and that is one of the things that drew us to LogicSource,” he said.