M&A: Vista Equity Partners Acquires Supply Chain Software, ESG Data Specialist Jaggaer
August 14, 2024 by Joe Panettieri
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.
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.
Andy Hovancik, CEO, Jaggaer
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:
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.
May 2024: Cinven prepared to sell Jaggaer, Reuters reported.
August 2024: Vista equity acquired Jaggaer
Vista Equity Acquires Jaggaer: Executive Perspectives
Michael Fosnaugh, co-head, Vista Flagship Fund
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.”
Sam Payton, senior VP Vista Equity Partners
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.”
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.”
Julia Kahr, partner and head of North America, CinvenDaniel Garin, senior principal, CinvenJohn Cuyulis, principal Cinven
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.”
Sustainable Tech Partner is a digital media platform and online community. Our content empowers technology partners and their customers to achieve a sustainable future.