Elemica Bought By Private Equity Firm Thoma Bravo

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Supply chain operating network provider Elemica will be acquired by private equity firm Thoma Bravo LLC. The two companies announced the deal earlier today but did not disclose financial details.

In a press release, the two companies said the acquisition will allow for a greater focus on resources and investing in next-generation technologies and expand Elemica’s supply chain solution capabilities. According to Elemica CEO John Blyzinskyj, the acquisition also means a faster time-to-market for supply chain solutions. Elemica currently serves customers in chemical, energy, plastics and related markets.

Thoma Bravo has previous experience working with the technology industry, which made it a good fit for Elemica, the announcement said.

“The time was right to find a buyer with a proven track record of successfully investing in distinctive software and technology companies and helping them grow faster,” Robert Blackburn, who chairs the board at Elemica, said in the announcement.

Thoma Bravo said Elemica was an “attractive investment opportunity” with a strong portfolio of technology solutions.

“Elemica represents the ideal archetype for what we look for in an investment at Thoma Bravo,” said A.J. Rohde, partner at Thoma Bravo. “The company has developed a patented supply chain and logistics network in key verticals such as chemicals, tire and rubber and other process industries, provides mission critical applications for its customers, and is run by a world class management team led by John Blyzinskyj, with whom we are thrilled to be partnered.”

Jason Busch, Spend Matters founder and head of strategy said the acquisition of Elemica shows the hunger private equity firms have to invest in the procurement technology market. It also follows a recent announcement of Accel-KKR acquiring SciQuest and many previous private fund led investments: Madison Dearborn/Fieldglass, GTCR/IQNavigator and Zouk/Taulia, GTCR/Opus Global/Hiperos.

“Elemica is a fascinating provider on multiple levels as it has built a platform-as-a-service (PaaS) model for supply chain enablement, yet it also relies on third-party technology,” Busch said. “We look forward to watching Elemica transition from a ‘shared service’ provider serving its captive clients/owners to a private equity owned venture in which the owners have material growth, product development and related goals and ambitions — potentially to complement Thomas Bravo’s previous acquisition of healthcare technology procurement giant GHX.”

For more a more detailed look at Elemica, SWOT analysis and commentary on the transaction, Spend Matters PRO members should see our First Take Analysis.

 

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