The Supply Chain Matters blog features our May 31, 2019 Edition of This Week in Supply Chain Management Tech, a brief synopsis of noteworthy supply chain management focused technology news which we believe would be of specific interest to our global-based blog readership.
Included in this edition are highlights related to noteworthy announcements and/or developments related to:
Zebra Technologies and Profitect
Blackstone and Prologis Separately Bid for DLP
The Wall Street Journal reported last week that Blackstone Group and Prologis, Inc. are each vying to acquire the U.S. arm of Singapore based warehouse real estate firm DLP. We first alerted our readers to the potential of DLP being acquitted in our May 10th This Week in Supply Chain Tech blog.
According to this report, the deal could be worth upwards of $20 billion, and the potential to create an industrial warehouse giant representing one of the largest real-estate takeovers since the global financial crisis.
The report cautions that there is no guarantee take a takeover deal can be completed and an IPO remains an option.
Privately held DLP entered the US market in 2015 and became the country’s second largest logistics property owner and operator within a year of market entry. The company’s global real estate fund platform is one of the largest in the world, spanning 785 million square feet.
The U.S. arm of DLP is noted as the second-largest owner of industrial warehouses amounting to upwards of 200 million square feet among 1350 properties with Amazon.com as its largest tenant.
The WSJ report further notes that Prologis has been an aggressive acquirer of late, most recently buying DCT Industrial Trust for an estimated $8.5 billion including debt. GLP originated as a carve-out of Prologis Asian based assets in 2009.
Private equity firm Blackstone Group’s existing real-estate business includes $140 billion in assets under management, with a reported 561 million square feet of existing logistics and warehousing properties.
Zebra Technologies Acquires Profitect
Supply chain management information technology, software and hardware provider Zebra Technologies announced last week that the company has acquired privately held retail industry analytics technology provider Profitect, Inc.
Profitect’s Cloud based software identifies opportunities to impact revenue and margin performance for well recognized retail and CPG branded companies, analyzing inventory, out-of-stocks, unsellable merchandise and assortment discrepancies.
According to the announcement, Zebra plans to leverage its acquisition to accelerate the development of the company’s Savannah data platform by combining real-time data capture with Profitect’s machine-learning and prescriptive analytics capabilities. Further noted is that Profitect CEO Guy Yehiav will de designated a key leader in the overall integration.
No financial terms were disclosed.
Of further note: Supply Chain Matters is in the process of scheduling a briefing with the parties involved and will provide further commentary at a later date.
Ivalua Raises an Additional $60 Million in Growth Equity Funding
Source-to-pay and procurement spend technology provider Ivalua announced last week that the company has raised $60 million in growth equity funding to further accelerate growth. The added capital investment values this company’s ‘unicorn’ level of valuation to more than $1B, with the company reportedly on-pace to exceed $100 million in annual revenues this year and is eyeing a near-term IPO.
Investors in the latest round included new investor Tiger Global Management, along with early investor Ardian Growth. The announcement indicates that Ivalua’s management retains a majority stake in the company to ensure stable, long-term planning.
According to Ivalua’s CEO and Founder, the additional funding will support future investments in product innovation, global expansion and the possibility of strategic acquisitions. To date, the company has amassed over 300 customers managing over $500 billion in direct and indirect procurement spending.
On-Demand Parts Marketplace Xometry Raises $50 Million
On-demand industrial parts marketplace technology provider Xometry, Inc. announced the raising of $50 million in a new funding round.
The company’s platform connects businesses that need product prototypes and small runs of parts with more than 3,000 domestic manufacturers and machine shops. The technology leverages data and artificial intelligence to match customers with vetted parts suppliers to generate price quotes and lead-time estimates.
The Series D funding was led by Greenspring Associates and included investments from Dell Technologies Capital and existing investors Foundry Group, Almaz Capital, Highland Capital Partners, Maryland Venture Fund and the venture arm of BMW AG and General Electric. The technology platform provider has raised a total of $113 million in outside investment since its founding in 2013.
The company plans to utilize its added funding to improve its technology and further build out the range of parts offered in its marketplace.
The company reportedly is expected to generate upwards of $100 million in revenues this year.
Added Note to Readers– Supply Chain Matters will feature our This Week in Supply Chain Tech highlight series as announcements warrant.
© Copyright 2019. The Ferrari Consulting and Research Group and the Supply Chain Matters® blog. All rights reserved.