M&A: Vista Equity Partners Acquires Supply Chain Software, ESG Data Specialist Jaggaer

 Vista Equity Partners has acquired Jaggaer, a supply chain software provider that also helps customers with their ESG (environmental, social and governance) and sustainability-related data. The seller was European private equity firm Cinven.

Financial terms of the deal were not disclosed. Cinven had been seeking about $3 billion for Jaggaer, Reuters reported in May 2024, though we don't know if Vista paid in that neighborhood.

This is M&A deal number 254 that Sustainable Tech Partner has covered so far in 2024. Related: See all M&A deals involving sustainability, climate tech and green IT services listed here.

Jaggaer Business Focus: Supply Chain Software

Jaggaer, founded in 1995 as SciQuest, is based in Durham, North Carolina. The company's software -- backed by roughly 1,200 employees -- helps roughly 1,400 customers to automate sourcing, spend management, contracting, eProcurement, invoicing and supply chain visibility.

Jaggaer's software allows customers to "harness ESG data" in a quest to "optimize sustainability across procurement and supply chain" activities, the company asserts.

Jaggaer's 12-month EBITDA (earnings before interest, taxes, depreciation and amortization) is roughly $125 million, and the company generates about $300 million in annual revenue, Reuters reported in May 2024.

Vista Equity Business Background: New owner Vista Equity, founded in 2000, is based in Austin, Texas. The company's investment strategy spans private equity, permanent capital, credit and public equity. Vista Equity has roughly $100 billion in assets under management. The company invests purely in enterprise software businesses.

Jaggaer Ownership, Valuations and CEO Changes

Jaggaer's business has experienced multiple CEO changes amid ownership changes in recent years. Among the key dates to note:

• July 2016 - New Owner: Accel-KKR acquired SciQuest for $509 million, and then rebranded SciQuest as Jaggaer in 2017.
• September 2016 - New CEO: Robert Bonavito succeeded Stephen Wiehe as CEO.
• July 2019 - New Owner: Cinven acquired Jaggaer for a reported $1.5 billion valuation. Accel-KKR maintained a minority interest in Jaggaer.
• October 2019 - New CEO: Jim Bureau succeeded Robert Bonavito as CEO.
• December 2022 - Layoffs: The company experienced layoffs, though specific job-cut figures were not disclosed. Among the challenges: COVID-19 affected global supply chains and customer demand for associated software.
• March 2023 - CEO Departs: CEO Jim Bureau exited the business, Triangle Business Journal reported.
• June 2023 - New CEO: Jaggaer hired Sovos Compliance veteran Andy Hovancik as CEO.
• May 2024: Cinven prepared to sell Jaggaer, Reuters reported.
• August 2024: Vista equity acquired Jaggaer

Vista Equity Acquires Jaggaer: Executive Perspectives

In a prepared statement about the deal, Jaggaer CEO Andy Hovancik said: “This new partnership with Vista underscores JAGGAER’s strong momentum and the compelling value our intelligent software delivers by helping our customers manage and automate complex processes while enabling a highly resilient, responsible and integrated supplier base. Vista is a highly experienced software investor, and I’m confident they will be an exceptional partner to JAGGAER during this exciting next phase of growth and opportunity.”

Added Michael Fosnaugh, co-head of Vista’s Flagship Fund and senior managing director: “JAGGAER provides a mission-critical platform that enables its customers and partners to streamline global supply chain and procurement processes, lower costs and improve visibility. JAGGAER’s products serve a large addressable market benefiting from durable growth tailwinds, including customers' increasing desire to unify direct and indirect spend management and realize the benefits of AI. JAGGAER is well-positioned to capitalize on these demand trends given its leading capabilities across source-to-pay workflows.”

Noted Sam Payton, senior VP at Vista: “JAGGAER’s comprehensive solution enables customers to manage all procurement activities from an intuitive platform that harmonizes and optimizes disparate spend data. JAGGAER is led by a high-performing leadership team with a demonstrated commitment to operational excellence and a bright vision for the future of AI-powered spend management. We're excited to support an organization that cares deeply about their customers, partners and mission.”

Cinven Sells Supply Chain Software Company: Executive Perspectives

In a separate announcement, Cinven executives shared their perspectives on the Jaggaer asset sale to Vista Equity.

In a prepared statement, Julia Kahr, partner and head of North America at Cinven, said: “JAGGAER has evolved to become one of the most innovative and leading-edge providers within today’s procurement and supply chain software landscape. We are proud to have supported JAGGAER’s strategic transformation over the last five years to further position itself as the partner of choice for the largest and most complex enterprise customers worldwide. We are confident JAGGAER is well-positioned to continue to build on its momentum in this next chapter, and we wish Andy and the entire team continued success.”

Added Daniel Garin, senior principal at Cinven, and John Cuyulis, principal at Cinven: “Leveraging Cinven’s deep experience in the technology sector, we supported JAGGAER’s efforts to drive commercial excellence and successfully develop and bring to market its highly differentiated JAGGAER One platform. JAGGAER embodies the high-quality organizations Cinven looks to partner with, and the ways in which we leverage our expertise and the global Cinven platform to execute on a shared vision for value creation.”

Concluded Jaggaer CEO Andy Hovancik: “We are grateful for Cinven’s dedicated partnership, which has launched JAGGAER into our next phase of growth. We look forward to continuing to help our customers transform the way they conduct enterprise commerce and to deliver best-in-class services.”

The deal is expected to close in Q4 of 2024.