SUPPLY CHAIN SOFTWARE

Market Review & Analysis

TABLE OF CONTENTS

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 Supply Chain Software. Market Review & Analysis

SUPPLY CHAIN SOFTWARE M&A &

INVESTMENT MARKET ANALYSIS
The market for supply chain software solutions has experienced major growth over the
past year as evidenced by record valuations throughout the space. The COVID-19
pandemic has placed significant stress on global supply chains, leading to the increased
adoption of supply chain software to mitigate the impact of economic shocks and global
disruptions. The supply chain market is expecting significant growth over the next
decade. The global digital payment market is expected to reach $15.61 billion by 2028,
which suggests a CAGR of 17.5%.

In the M&A and capital markets, which are experiencing significant activity, there is
major appetite for new and promising supply chain software. In 2021 alone, $229.22
billion in investment and deal capital was deployed into the supply chain technology
space. The median post-money valuation for a deal with a strategic buyer was $399.92
million in 2021 and when compared to 2020’s $83.75 million median post-money
valuation, represents an increased appetite for big deals in the space as well as high
consolidation pressures.

In short, the outlook for the supply chain software market is trending positively. The
market had previously been dominated by procurement and sourcing software, but
increased usage of machine learning and AI tools are enabling the rise of efficient
inventory management software, supply chain planning tools, transportation
management software, and logistical planning tools. Furthermore, business models
within this market are shifting towards cloud-based SaaS solutions. The combination of
these tailwinds has created an incredibly exciting marketplace

Industry Statistics Key Drivers | Most Active Investors

871 2,841 1,897 167
Companies Investors Deals Exits

Capital Raised 72 Key Drivers | Most Active Acquirers

($ billions)

33 27 Sector Breakdown
32

73
83%
Business/Productivity Software
32%
Logistics
23%
Media and Information Services

2017 2018 2019 2020 2021

9%
Financial Software

PE VC M&A 9%
Automation/Workflow Software

Sources: Pitchbook, Proprietary Insights.

 Supply Chain Software. Market Review & Analysis

SUPPLY CHAIN SOFTWARE M&A &

INVESTMENT MARKET ANALYSIS
Deal Count Key Drivers | Strategic Acquisitions

41

19 20 18
18

301

262 262 257

236

Key Drivers | Sponsors: Growth-Oriented

26 30 39
23 21
2017 2018 2019 2020 2021

Median Post Valuation vs. Median Deal Size

($ millions) 7

3 3 3 Key Drivers | Sponsors: Traditional Buyout

19 18 26 28 45

2017 2018 2019 2020 2021

Median Post Valuation Median Deal Size

Sources: Pitchbook, Proprietary Insights.

 Supply Chain Market Review & Analysis

MOST ACTIVE ACQUIRERS WITHIN

SUPPLY CHAIN SOFTWARE
Industry
Transactions Select transactions Acquisitions Themes & Rationale
Acquirer | Target | Deal Value
in Past 5 Years

4
• The acquisition of Containerchain for its container
management technology and expertise allows WiseTech
Global to further expand its offerings and ability to reach
new customer segments.

• The acquisition of Pierbridge expands and accelerates the

development of WiseTech Global’s scalable high-volume
domestic and international fulfillment e-commerce
solutions.

• Wisetech Global’s acquisition of SmartFreight will allow

them to invest more in expansion in the Oceana region.

3
• ecUtopia’s cloud-based supply chain platform will
enable TrueCommerce to strengthen its commerce
network and supply chain within various markets

• Datalliance complements TrueCommerce’s portfolio

by providing services that include inventory
management, collaborative replenishment, and
demand forecasting.

• DiCentral’s enterprise platform will give

TrueCommerce the ability to leverage new
automation, integration, management, and
digitalization solutions

• This acquisition expands Accenture's capabilities for

2 helping clients create interconnected supply chains

that are intelligent and innovative

• Accenture’s acquisition of GRA Supply Chain

Consultants will enable them to leverage their IT
solutions to address complex supply chain demands

2
• Llamasoft’s supply chain analytics and planning
platform helps Coupa forecast demand to meet
service requirements, optimizing inefficiencies

• ConnXus’s cloud-based supplier management and

reporting tools help businesses to make intelligent
decisions on building a sustainable supply chain.
These tools complement Coupa’s business spending
management platform.

Sources: Pitchbook, Proprietary insights

 Supply Chain Market Review & Analysis

MARKET
COMPARABLES
Supply chain software valuations are comparable relative to other software verticals and
have grown significantly relative to previous years. Public companies in the supply chain
software space are trading at a median EV/revenue multiple of 9.51x. Private company
multiples are slightly higher with a median EV/revenue multiple of 5.0x due to record demand for
software solutions and consolidation pressures.

Public Company Multiples

EV/ Revenue Multiple

14.75x 11.12x 12.43x 14.75x

Benchmark Median: 8.49x 0.74x
0.74x 9.51x

EV $3.77B $6.86B $1.80B $2.06B $7.4B

EV/EBITDA Multiple

247.81x

247.81x -38.26x -11.52x -55.95x 13.16x

Median:
Benchmark
31.05x
-55.95x
Fastly Anaplan C3.ai Olo Covetrus

Select Private Company M&A Multiples

2017 2018 2019 2020 2021

EV/ Revenue Multiple

10.0x 10.29x
8.5x
4.3x 4.32x 4.55x 4.76x
0.61x 1.59x 1.3x
Median:
5.0x
Target
Transaction Size ($, Million)

Investor/
Acquirer

7,100

2,160
750 350
119.5 217.7 65.8 130 10 700

Sources: Pitchbook, Proprietary insights

Benchmark includes 25th to 75th percentile, emitting the lowest and highest multiples.
 Supply Chain Market Review & Analysis

APPENDIX – SUPPLY CHAIN

SOFTWARE INVESTMENTS
Segment Breakdown Based on Investment Size 2013-20211

2013

2014

2015

2016

2017

2018

2019

2020

2021

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

$0 — $.99M $1M — $4.99M $5M — $9.99M $10M — $24.99M $25M <

Sources: Pitchbook, Proprietary insights

1Breakdown on the industry based on the size of each investments in the industry matched with the percentage each investment segment occupies in the total

deal count for the given year.

Supply Chain Market Review & Analysis

APPENDIX – SUPPLY CHAIN

SOFTWARE M&A TRANSACTIONS
Supply Chain Software Transactions
Date Target Acquirer Deal Value ($mm)

24-Dec-2021 Cai Mo Mo Mei tuan

23-Dec-2021 Data Systems International Nextworld

15-Dec-2021 Lumi Narvar

08-Dec-2021 Shipwire CMA CGM

03-Dec-2021 Navegate Radiant Logistics (ASE: RLGT) 35.00

30-Nov-2021 Stowga Value Chain Lab

23-Nov-2021 Mindlinks CRMIT Solutions

16-Nov-2021 Skyland Analytics ID Business Solutions

15-Nov-2021 Transplace Uber Freight 2,250.00

03-Nov-2021 GeniusCentral Systems SPS Commerce (NAS: SPSC) 17.00

18-Oct-2021 Marg ERP PharmEasy

28-Sep-2021 Decision AI DataRobot

21-Sep-2021 Convey Project44 255.00

10-Sep-2021 Blue Horseshoe Accenture (NYS: ACN)

09-Sep-2021 Oqton 3D Systems (NYS: DDD) 180.00

19-Aug-2021 SupplyFrame Siemens (ETR: SIE) 700.00

18-Aug-2021 Omni-ID Assa Abloy (STO: ASSA B), HID

Global
03-Aug-2021 Cropster Hub Vollers Group Gmbh & Co.

12-Jul-2021 Sentry Data Systems Craneware (LON: CRW) 400.00

01-Jul-2021 Tarsus Technology Group Alviva Holdings (JSE: AVV) 13.30

18-Jun-2021 Clique Payments Atlantic Pacific Processing

Systems
17-May-2021 Invoice Bazaar Triterras Fintech

10-May-2021 Quifers Sitics Logistic Solutions(Sikander

AM)
28-Apr-2021 Nadhi Information Technologies Bentley Systems Acceleration
Initiatives
23-Apr-2021 Blue Yonder (Arizona) Panasonic (TKS: 6752) 7,100.00

19-Apr-2021 rfXcel Antares Vision (MIL: AV) 120.00

16-Apr-2021 Vend Lightspeed POS (TSE: LSPD) 350.00

03-Apr-2021 Pharmarack DigiHealth Technologies 15.25

04-Mar-2021 Masterplan ERP 24SevenOffice (SAT: 247)

26-Feb-2021 QuestaWeb Descartes Systems Group (TSE: 35.82

DSG)
26-Feb-2021 Upskill TeamViewer (FRA: TMV) 15.21

Sources: Pitchbook as of 11/09/2021 showing known and unknown deal sizes

Supply Chain Market Review & Analysis

APPENDIX – SUPPLY CHAIN

SOFTWARE M&A TRANSACTIONS
Supply Chain Software Transactions Cont.
Date Target Acquirer Deal Value ($mm)

24-Feb-2021 Exa Ag SNP Schneider-Neureither &

Partner (ETR: SHF)
24-Feb-2021 ManufactOn ViZZ Technologies

17-Feb-2021 Fusionware C9 Capital

28-Jan-2021 Idylis XEFI

15-Jan-2021 Arena Solutions PTC (NAS: PTC) 715.00

21-Nov-2020 LLamasoft Coupa (NAS: COUP) 1,500.00

13-Oct-2020 BidMode EC Sourcing Group

08-Oct-2020 Retail Solutions Information Resources

23-Sep-2020 QuickBooks Commerce Intuit (NAS: INTU) 85.00

23-Sep-2020 Unamera House of Crops unamera

05-Aug-2020 TableUp TouchBistro

10-Jul-2020 Stitch Labs Block (NYS: SQ)

20-May-2020 MatchBack Systems SynchroNet

06-May-2020 HarvestMark iFoodDecisionSciences

01-May-2020 ConnXus Coupa (NAS: COUP) 10.00

20-Apr-2020 Moka (Financial Software) Gojek 130.00

17-Apr-2020 Optitex FOG Software Group

23-Mar-2020 American Global Logistics Terra Worldwide Logistics

09-Mar-2020 Offset Market Exchange Sustainalytics

17-Feb-2020 Icon Integration Accenture (NYS: ACN)

10-Jan-2020 Valify HCA Management Services (NYS:

HCA)
09-Jan-2020 Kuebix Trimble (NAS: TRMB) 201.10

09-Dec-2019 Scout (Business/Productivity Workday (NAS: WDAY) 513.49

Software)
09-Dec-2019 StompMarket Mall91

24-Oct-2019 TrackAbout Datacor

17-Oct-2019 6 River Systems Shopify (TSE: SHOP) 394.00

15-Oct-2019 Mediamorph Whip Media

10-Oct-2019 Crux Systems Flexport

13-Sep-2019 Ecomdash Endurance International Group 9.60

19-Aug-2019 Spiceworks Ziff Davis (NAS: ZD)

06-Aug-2019 Celect Nike (NYS: NKE) 110.00

Sources: Pitchbook as of 11/09/2021 showing known and unknown deal sizes

Supply Chain Market Review & Analysis

APPENDIX – SUPPLY CHAIN

SOFTWARE M&A TRANSACTIONS
Supply Chain Software Transactions Cont.
Date Target Acquirer Deal Value ($mm)

31-Jul-2019 51 Signing BestSign

31-Jul-2019 ODYN Turvovh

13-May-2019 ecUtopia TrueCommerce

25-Apr-2019 TrustBIX (TSX: TBIX) ViewTrak Technologies

25-Feb-2019 Containerchain WiseTech Global (ASX: WTC) 65.83

14-Jan-2019 Engility Science Applications International 2,160.00

(NYS: SAIC)
08-Jan-2019 Indigo Olive Software iDeskHub

01-Jan-2019 GrandCanals C.H. Robinson Worldwide (NAS:

CHRW)
13-Dec-2018 Good Materials Quan Cai

06-Dec-2018 Contigo Software Energy One (ASX: EOL) 5.14

01-Dec-2018 Sixred (Dallas) Crowe

16-Nov-2018 Integration Point Thomson Reuters (TSE: TRI)

16-Oct-2018 Smartfreight WiseTech Global (ASX: WTC) 39.44

13-Sep-2018 Danforth Systems Barcoding

15-Aug-2018 MetaPack Auctane 217.70

15-Aug-2018 September BI Acando (Norway)

02-Jul-2018 Transparix Logistyx Technologies

24-May-2018 IESA Electrocomponents (LON: ECM) 119.49

04-Apr-2018 eBECS DXC Technology (NYS: DXC)

04-Apr-2018 Sable37 DXC Technology (NYS: DXC)

13-Mar-2018 LSP Solutions WiseTech Global (ASX: WTC) 3.95

11-Jan-2018 Kenandy Rootstock Software

04-Jan-2018 Consumer Centric Consulting Columbus Consulting

13-Dec-2017 Shipt Target (US) (NYS: TGT) 550.00

07-Dec-2017 Verify Brand Optel Group

07-Nov-2017 First Hosted RSM UK

19-Oct-2017 Turck Vilant Systems Hans TURCK

18-Sep-2017 Global Capacity GTT Communications (PINX: 104.00

GTTNQ)
14-Sep-2017 Datalliance TrueCommerce

28-Aug-2017 HighJump Körber 750.00

10-Aug-2017 Mercury Network CoreLogic 83.00

Sources: Pitchbook as of 11/09/2021 showing known and unknown deal sizes

CONTACT
INFORMATION
Shane Hubbell Chris Skubic Taylor Adkins