Coupa buys Llamasoft for $1.5bn in 'very timely acquisition'

5 November 2020

Coupa Software has bought supply chain planning company Llamasoft for around $1.5bn.

The deal comes at a time when economic, political and trade landscapes are constantly changing and Coupa said the deal would bring stronger capabilities around “instant visibility, agile planning capabilities, and timely risk mitigation support”.

Llamasoft’s AI-powered cloud platform, launched in January 2020, provides the technology to “assess alternatives and balance trade-offs to achieve desired business results” during periods of demand uncertainty and supply volatility.

Coupa said the platform was currently used by brands such as Boeing, Danone SA, and Nestlé, and it enables organisations to “leverage an end-to-end decision data model and employ a library of proven supply chain algorithms”. 

“These applications can run what-if scenarios and surface valuable insights before organisations make key business decisions”, it added.

Rob Bernshteyn, chairman and CEO at Coupa, said: “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.

“Llamasoft’s deep supply chain expertise and sophisticated data science and modelling 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.”

Coupa, a US supply chain services firm with its own business spend management (BSM) platform, was founded in 2006. It works with companies across a range of sectors, such as Airbus, P&G, and Unilever. 

According to a 2019 report by Market Research Future on the global procurement software market, Coupa is among the key players in the market, alongside IBM, Oracle, SAP SE, Infor, Epicor Software, Zycus, JDA Software, and Mercateo AG.

Coupa has a market value of $17.6bn and revenues of $390m in 2020, up 49.68% on 2019, according to MarketWatch.

Mickey North Rizza, program vice president of enterprise applications and digital commerce at market research firm International Data Corporation, said: “This very timely acquisition comes as supply chains are undergoing tremendous disruption that is best navigated using AI-enabled decision processes surrounding a digital twin of the end-to-end supply chain. 

“Incorporating supply chain planning capabilities as part of a comprehensive BSM strategy will give companies more visibility and control across their direct and indirect spend.”

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