Select HW Supply Chain and Logistics Technology and Services Transactions

screen_shot_2019-04-17_at_2.37.07_pm.pngProvider of multi-modal transportation management and logistics technology solutions

 

 

 

 

screen_shot_2019-04-17_at_2.37.39_pm.pngProvider of cloud-based manufacturing and supply chain software for mid-market manufacturers

 

 

 

 

screen_shot_2019-04-17_at_2.38.34_pm.pngProvider of intelligent traffic software (ITS) and IoT solutions for the transportation industry

 

 

 

screen_shot_2019-04-17_at_2.39.14_pm.png Provider of technology-enabled Enterprise Logistics solutions

 

 

 

screen_shot_2019-04-17_at_2.39.53_pm.pngProvider of multi-modal transportation management and logistics technology solutions

screen_shot_2019-04-17_at_2.40.31_pm.pngProvider of ERP and warehouse management software solutions for 3PL, eCommerce, manufacturing, and retail companies

 

 

 

screen_shot_2019-04-17_at_2.42.36_pm.pngProvider of safety solutions to fleet vehicle manufactures and operators

 

 

 

 

screen_shot_2019-04-17_at_2.43.25_pm.pngProvider of supply chain logistics and purchasing software solutions for healthcare providers and  facilities

 

 

 

screen_shot_2019-04-17_at_2.43.56_pm.pngProvider of commercial maritime logistics execution and planning software and data solutions

 

 

screen_shot_2019-04-17_at_2.44.28_pm.pngProvider of supply chain management software solutions focused on warehouse management, EDI, and direct store delivery

Supply Chain & Logistics Technology Focus Areas

screen_shot_2019-04-23_at_4.06.06_pm.pngKey Trends

Increased competition and price sensitivity as a result of continued globalization of commerce is resulting in accelerating adoption of sourcing and planning software by companies of all sizes and across many verticals 

Digital solutions are streamlining the S&OP process with real-time data visibility and technical capabilities that enable companies to improve planning collaboration, increase agility, and speed planning cycle times

 

 

 

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Key Trends

Orders are growing in volume, speed and complexity as a result of direct-to-consumer and multichannel commerce in consumer goods and retail, forcing warehouse leaders to invest in new processes and technologies

Incorporating real-time performance data into design and execution management software through IoT devices is allowing for closed-loop manufacturing and continuous improvement of processes

 

 

 

screen_shot_2019-04-23_at_4.08.00_pm.pngKey Trends

Rising freight rates, driver shortages, tight truck capacity, and changing customer demands are pushing shippers to utilize TMS software to manage increasingly sophisticated transportation networks

Fleet management software solutions are improving routing and scheduling of deliveries, driver mobility, and integration with onboard vehicle telematics

Sector Investment is Being Driven by Greater Need for Visibility and Control Over Global and Complex Supply Chains

Key Industry Trends1,2

Evolving Consumer Preferences

  • The emergence of readily available production and supply chain data for consumers has resulted in heightened customer expectations and shortened acceptable delivery schedules, putting severe pressure on the supply chain
  • Increased pressures on fulfillment have resulted in many suppliers leveraging omni-channel best practices and implementing distributed manufacturing processes to be closer to consumer demand

Complex Tariff and Duty Requirements

  • In today’s global climate, import and export regulations are constantly changing, challenging companies to remain compliant and timely
  • Leading importers and exporters are moving away from disparate legacy systems to integrated, full-stack solutions to track licenses, tax documentation, applicable sanctions, audits, and payment history to drive operational efficiencies

Artificial Intelligence and Advanced Analytics

  • AI is driving automation and decision making to help streamline processes, optimize supply chain planning, and improve virtually every aspect of transportation
  • Perspective analytics is improving decision making in supply chain planning, sourcing, logistics, and transportation, and is driving increased end-to-end visibility

Blockchain and IoT

  • Blockchain is emerging as a valuable tool for creating immutable records in a distributed ledger that can allow all participants in a certain supply chain to understand the movement of goods
  • Adoption of IoT is accelerating as companies to seek to enhance visibility across their global supply chains and unlock new uses cases such as preventative maintenance, sourcing, demand management, and services

Accelerating Cloud Adoption

  • Gartner estimates the $15.2 billion SCM and Logistics technology market will increase by a 11% CAGR through 2022
  • Hybrid SCM environments with co-existing cloud and on-premise applications are becoming more commonplace, with multi-enterprise applications such as information hubs and supplier networks leading the transition to the cloud

Increasing M&A Momentum Across the Broader Supply Chain and Logistics Technology Market

Recent Supply Chain & Logistics Technology M&A Activity

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Notable Industry Consolidators

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Recent Select Supply Chain & Logistics Technology Transactions3

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Providence Equity’s Pending Acquisition of GlobalTranz

  • GlobalTranz is a leading freight brokerage and provider of cloud-based multi-modal Transportation Management System (TMS) software to shippers, carriers, 3PLs and brokers.
  • The company’s solutions optimize the efficiency of freight movement and matches shipper demand and carrier capacity in real-time for its 25,000+ customers and network of 34,000+ carriers.
  • With Providence’s support, GlobalTranz will continue to grow both organically and inorganically through product development, increased customer support, and strategic acquisitions.

 

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ICONIQ Capital’s Strategic Investment in Truckstop.com

  • Truckstop.com is a leading provider of a SaaS-based freight matching marketplace and load board solutions connecting tens of thousands of carriers and brokers with technology solutions for the entire freight management lifecycle.
  • The company’s solutions include partner vetting tools, credit and insurance insights, freight tracking and visibility, transportation management systems (TMS), integrations with most major industry software partners, and complete payment solutions.
  • Truckstop.com will leverage ICONIQ’s resources and expertise to expand the company’s portfolio of technology solutions, improve its customer service, grow its sales team, and support further growth through acquisitions.

 

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Descartes’ Acquisition of Visual Compliance

  • Visual Compliance is a leading provider of software and services to automate customs, trade and fiscal compliance processes, with a focus on denied and restricted party screening processes and export licensing.
  • The company's global trade compliance software offers visual importer system which allows its 2,000 customers and 67,500 subscription-based users to create, manage, and transmit import transactions.
  • The acquisition will further cement Descartes’ position within the data screening and global trade management market and builds upon its previous acquisitions of Datamyne (2016), MK Data Services (2015), and Customs Info (2014).

 

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TCV’s Minority Investment in RELEX Solutions

  • RELEX is a leading provider of end-to-end retail planning solutions enabling companies to improve their competitiveness through accurate forecasting and replenishment, localized assortments, profitable use of space and optimized workforce planning.
  • The company’s SaaS solutions deliver quick return on investment and can be used independently or jointly for unified retail planning, enabling cross-functional optimization of retail’s core processes: merchandising, supply chain and store operations.
  • RELEX will use the investment to boost its sales presence, especially in the US, where business is growing the fastest, and improving connectivity for its customers’ retail supply chains.

 

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HgCapital’s Investment in Transporeon

  • Transporeon is a leading provider of a cloud-based logistics platform creating a digital connection between shippers and their logistic partners and supports transparent and cost-efficient goods flows across the globe.
  • The business connects a global network of over 1,000 shippers and trading companies, over 65,000 carriers (logistics and transport providers, 3PL providers, carriers and brokers) and over 100,000 users in over 100 countries.
  • Hg will partner with Transporeon to further support its vision around the digitalization of the freight industry, while also continuing to support further product development and geographic expansion.

Select Recent Private Placements3

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Note: Financial information presented above represents reported capital raised only.

Supply Chain & Logistics Technology Landscape

Supply Chain & Logistics Technology Landscape

Representative Providers

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Supply Chain Networks and Procurement Solutions Help Increase Visibility, Communication, and Control Costs

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Connected Manufacturing, Warehousing, and Fulfillment Processes are Essential to Effective Supply Chain Execution

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Integrated Logistics Management Solutions Remain a Key Focus Area as Shippers Seek to Optimize Freight Spend Across Modes

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Real-time Visibility into Supply Chains and Risk Mitigation is a Key Theme for Both Shippers and Carriers

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Supply Chain & Logistics Technology Public Market Observations4

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Source: Factset, as of March 31, 2019.

Supply Chain & Logistics Technology – Trading Comparables4

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Source: Factset, as of March 31, 2019.

Demonstrated Success Transacting Across the Supply Chain

Select HW Supply Chain & Logistics Technology and Services Transaction Experience

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3PL / Transportation Management

  • Provider of multi-modal transportation and logistics solutions

Key Value Drivers

  • Highly visible transactional revenue with scalable EBITDA margins
  • Proven acquisition platform with compelling M&A opportunity to accelerate market share
  • Highly scalable, non-asset based business model configured for strong free cash flow generation
  • Highly motivated management team with deep industry experiencescreen_shot_2019-04-23_at_4.17.33_pm.png

 

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Manufacturing Supply Chain Software

  • Provider of cloud-based, fully-integrated manufacturing and supply chain software solutions

Key Value Drivers

  • Feature-rich platform poised for continued expansion in a growing $35 billion global market underpinned by compelling Manufacturing 4.0 trends
  • Longstanding customers across diverse manufacturing end-markets and geographies
  • Multiple avenues for continued organic growth, including a robust sales pipeline and compelling cross-sell opportunityscreen_shot_2019-04-23_at_4.20.16_pm.png

 

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3PL / TMS / Freight Audit Solutions

  • Provider of technology-enabled Enterprise Logistics solutions

Key Value Drivers

  • Tangible value proposition for shippers experiencing the pressures of increasingly complex supply chains and growing freight costs
  • Growing truckload and less-than-truckload freight brokerage operation complements Enterprise Logistics offering
  • An acquirer of choice with a proven ability to execute strategic M&A, having completed six acquisitions in four yearsscreen_shot_2019-04-23_at_4.21.38_pm.png

 

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Maritime Logistics Technology

  • Provider of commercial maritime ERP and supply chain software and data solutions

Key Value Drivers

  • Expanding and highly referenceable client base consisting of many of the world’s premier energy, agricultural, trading and maritime organizations
  • Large addressable market for current solutions and significant incremental opportunity through product expansion with new and existing user segments
  • Best-in-class, fully-integrated software and data solutions that drive operational improvements and efficienciesscreen_shot_2019-04-23_at_4.22.49_pm.png

1. Gartner
2. IDC
3. PitchBook
4. Gartner

 

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