May 11, 2017

Private equity firm buys majority stake in Llamasoft

TPG Capital's multimillion-dollar investment to fuel Llamasoft rollout of supply chain visibility, planning, and demand modeling tools.

By Ben Ames

Supply chain software firm Llamasoft Inc. said Tuesday that it had sold a majority stake of the company to a private equity firm for several hundred million dollars, and will use the cash to launch supply chain visibility, planning, and demand modeling solutions in the third quarter.

San Francisco-based TPG Capital did not disclose financial details of the investment, but a LLamasoft spokesman confirmed published reports that the amount was significantly larger than a $50 million capital injection made by Goldman, Sachs Group, Inc.'s Merchant Banking unit in 2015. Goldman will retain its minority share, Llamasoft said.

Ann Arbor, Mich.-based Llamasoft was not shy to spend Goldman's money, acquiring both the LogicTools supply chain applications suite from IBM Corp. and the supply chain software division from South African rival Barloworld Ltd. in 2015.

The Llamasoft deal marks TPG's second recent investment in the supply chain technology space. Last year, it invested in Transporeon, a European cloud-based business network for industrial logistics.

Neither party released specific figures for the latest investment, but the value of a majority stake would be several hundred million dollars, LLamasoft co-founder and Executive Vice President Toby Brzoznowski said in an interview.

'We're excited to partner with TPG because they're a great cultural fit, and their investment shows a realization that the supply chain software space is ripe for innovation and disruptive technologies," Brzoznowski said. "The number one value is for our customers, and honestly for the industry as a whole."

About the Author

Ben Ames
Senior Editor
Ben Ames has spent 20 years as a journalist since starting out as a daily newspaper reporter in Pennsylvania in 1995. From 1999 forward, he has focused on business and technology reporting for a number of trade journals, beginning when he joined Design News and Modern Materials Handling magazines. Ames is author of the trail guide "Hiking Massachusetts" and is a graduate of the Columbia School of Journalism.

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