Cinven Seeks $2.5 Billion Sale of Software Provider Jaggaer

Cinven is preparing to sell Jaggaer, a North Carolina-based supply chain software provider, for over $2.5 billion. The company, which generates $300 million in annual revenue, provides cloud-based business automation technology for large corporations.

author-image
Aqsa Younas Rana
New Update
Cinven Seeks $2.5 Billion Sale of Software Provider Jaggaer

Cinven Seeks $2.5 Billion Sale of Software Provider Jaggaer

Private equity firm Cinven is preparing to sell Jaggaer, a North Carolina-based supply chain software provider, for over $2.5 billion, valuing the company at more than 20 times its $125 million earnings before interest, taxes, depreciation, and amortization (EBITDA). Cinven has tapped investment banks Goldman Sachs and Moelis to advise Jaggaer on its sale process, which is expected to launch later this year.

Why this matters: The potentialsale of Jaggaer highlights the growing importance of supply chain management in today's complex global business environment, where companies are seeking to optimize their operations and mitigate risks. As the demand for supply chain management solutions continues to rise, this deal could have significant implications for the industry and the companies that rely on these solutions.

Jaggaer, which generates about $300 million in annual revenue, provides cloud-based business automation technology for large pharmaceutical corporations, industrials firms, and insurers. The company's software helps manage supply chains for multinational corporations, including AstraZeneca, Unilever, and Merck KGaA.

Cinven acquired a majority stake in Jaggaer from investment firm Accel-KKR in 2019, in a deal that valued the company at about $1.5 billion. Last year, Jaggaer appointed Andy Hovancik as its new CEO. The auction for Jaggaer is expected to attract other private equity firms, with Cinven hoping to command a valuation of about $3 billion, including debt.

Founded in 1995 by four friends who initially created an online directory for product catalogs, Jaggaer has evolved over the years to become a leading provider of supply chain management software. The company, originally known as SciQuest, was rebranded as Jaggaer in 2017.

The potential sale of Jaggaer comes at a time when demand for supply chain management solutions is on the rise, as companies seek to optimize their operations and mitigate risks in an increasingly complex global business environment. With its strong market position and impressive financial performance, Jaggaer is well-positioned to capitalize on this trend and attract significant interest from potential buyers.

Key Takeaways

  • Cinven to sell Jaggaer, a supply chain software provider, for over $2.5 billion.
  • Jaggaer valued at 20+ times its $125 million EBITDA, with $300 million annual revenue.
  • Company provides cloud-based business automation tech for large corporations.
  • Cinven acquired Jaggaer in 2019 for $1.5 billion, now seeking $3 billion valuation.
  • Demand for supply chain management solutions is rising, driving interest in Jaggaer sale.