Coupa said it has agreed to spend $1.5 billion to acquire LLamasoft, whose artificial intelligence (AI)-powered software is used by companies to help manage their supply chains more efficiently.
The acquisition of LLamasoft will strengthen the value of its business spend management (BSM) software for the corporate sector, at a time when firms across the board are struggling to accurately assess and balance supply and demand, Coupa noted in a press release.
Major shifts in consumer preferences, economic conditions and the political landscape amid the turbulence caused by the coronavirus crisis and economic downturn have made the task of accurately gauging market conditions that much harder, Coupa noted.
LLamasoft’s supply chain management technology counts among its customers a number of corporate giants, including Boeing, Danone S.A., Home Depot and Nestle.
“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,” Rob Bernshteyn, chairman and CEO at Coupa, said in a press 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.”
The deal comes roughly 10 months after LLamasoft launched its newest product, llama.ai, which “delivers AI-powered decision-making across the supply chain to support an almost unlimited number of use cases,” Coupa noted in its press release.
In July, Coupa announced a number of upgrades to its BSM offerings as well.