Ann Arbor’s LLamasoft bought out for $1.5 billion

SAN MATEO, Calif.—Officials at San Mateo, Calif.-based Coupa Software Inc. announced the acquisition of LLamasoft, the Ann Arbor-based supply chain design and analysis software, for a purchase price of approximately $1.5 billion.

There was no immediate word on the future of LLamasoft’s Ann Arbor office.

Coupa, founded in 2006 by Oracle Corp. alumni Dave Stephens and Noah Eisner, develops software for what it calls “business spend management.” It has about 2,000 employees. LLamasoft was founded in 2002, and raised more than $56 million in venture capital over those years. It released its latest artificial intelligence-based supply chain management tool earlier this year, and has annual revenue of more than $100 million. Publicly held Coupa posted revenue of $217.3 million in the first half of 2020, up from $156.4 million in the first half of 2019. It also posted a loss of $62 million in the first half, but almost all of that was due to non-cash stock-based compensation expense and acquisition expenses. (Coupa is an active buyer of other software companies, with 17 acquisitions since its founding.)

“We are witnessing an unprecedented shift in what businesses are demanding to effectively manage their supply chains. They need instant visibility, agile planning capabilities, and timely risk mitigation support,” Coupa Chairman and CEO Rob Bernshteyn said in a news release. “LLamasoft’s deep supply chain expertise and sophisticated data science and modeling capabilities, combined with the roughly $2 trillion of cumulative transactional spend data we have in Coupa, will empower businesses with the intelligence needed to pivot on a dime. Together, we will deliver a more powerful business spend management platform to help organizations everywhere maximize the value of every dollar they spend in a smarter, simpler, and safer way.”

Added LLamasoft CEO Razat Gaurav: “Combining Coupa’s market-leading spend management execution core and broad market reach with LLamasoft’s AI-powered supply chain analytics provides a unique opportunity to bring together digital transformation solutions that drive decision making and operational efficiency across the enterprise. I am equally excited for employees of both organizations who share a culture that prioritizes delivering innovation and exceptional customer value.”

Most recently, LLamasoft was named to the Inc. 5000 List of Fastest Growing Private Companies for the fifth consecutive year, won a 2020 Detroit Free Press Top Workplace award, and was named a winner of the Supply & Demand Chain Executive magazine Green Supply Chain Award 2019.

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