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Cinven agrees investment in Jaggaer
Posted on Tuesday, 09 July 2019 10:15
Jaggaer, the US-headquartered cloud-based spending management business taken private by Accel-KKR three years ago, is set to receive a significant investment from private equity firm Cinven, which will take its growth to the next level.
The company has tripled in size following the 2016 institutional buyout worth USD 509.00 million and plans to continue on the same trajectory with the support from the new backer to increase assets and capabilities around its leading platform named Jaggaer One.
Financial terms of the transaction were not disclosed by either business; however, Bloomberg cited people familiar with the matter as saying the deal values the target at USD 1.50 billion, including debt.
Cinven’s technology, media and telecoms (TMT) portfolio has been looking to expand following the successful purchase of Visma in May 2019, Ufinet Group in July 2018 and HEG in April 2017.
The deal represents the buyout firm’s third investment in the US and closing of the transaction remains subject to regulatory and anti-trust approvals.
Since becoming privately-owned, Jaggaer has achieved multiple targeted verticals and has been cited as a leader in several analyst rankings for procure to pay and strategic sourcing capabilities.
The group recently launched its comprehensive spend management suite Jaggaer One to leverage machine learning and artificial intelligence with a network of 4.00 million suppliers.
It claims to be the world’s largest spend management company with over 2,000 customers across 70 countries.
Jaggaer, previously named SciQuest, posted net income of USD 1.06 million on revenue of USD 26.89 million in the three months to 31st March 2016, which is the last available financials before the group went private.
Given the software publishing sector is such a wide varied industry, it comes as no surprise that Zephyr, the M&A database published by Bureau van Dijk, shows there have been 2,075 deals signed off in the year to date.
Salesforce is buying US-based online analytics and data visualisation software developer Tableau Software for USD 15.70 billion in the largest of these.
Hellman & Friedman, Blackstone, JMI Management and Canada Pension Plan Investment Board, via United Parent, acquired payroll and workforce management platform Ultimate Software Group for USD 11.00 billion in the second-biggest deal.
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