Kidd & Company and Firmament have sold their investment in Logistyx Technologies, a multi-carrier shipping software company, to E2open, a provider of supply chain management software and a portfolio company of Insight Venture Partners, for $185 million.
Logistyx is a cloud-based software provider specializing in transportation management for parcel shipping. In 2017 Kidd & Company, in partnership with McLarty Capital Partners, formed Logistyx, to acquire and merge Advanced Distribution Solutions, Agile Network, and Pentechnik International into one entity. Today, the company provides its customers with tools and data to determine the fastest and most cost-effective method for shipping products around the world. Headquartered just outside Chicago in Rolling Meadows, Illinois, Logistyx has satellite offices in various locations around the U.S. and international offices in Amsterdam, Singapore and Toronto.
E2open is a provider of cloud-based, on-demand software that is used to procure, manufacture, sell, and distribute products across trading networks. Customers of E2open include Avnet, Celestica, Cisco, HP, IBM, Lenovo, L’Oreal, Motorola Solutions, Seagate, and Vodafone. E2open, led by CEO Michael Farlekas, is headquartered near San Mateo in Foster City, California and was acquired by Insight in March 2015.
“This combination makes E2open the most comprehensive and integrated shipping solution provider, which covers all shipping modes including ocean, air, road, rail, and parcel, and is powered by a global network of carriers and logistics service providers,” said Mr. Farlekas. “Logistyx is complementary to E2open’s existing platform, enabling E2open’s world-class clients to orchestrate their supply chains from demand to fulfillment, to supply.”
Kidd & Company is the private investment arm of the Kidd Family Office and makes control equity investments in the lower middle market. The firm was founded in 1976 by William Kidd and is headquartered in Old Greenwich, Connecticut.
“We started with a thesis in 2015, formed Logistyx in 2017, executed our plan for the past five years and now ‘pass the torch’ to E2open,” said Gerry DeBiasi, a partner a Kidd & Company. “From our first meeting with the E2open team, it was clear that they would be an excellent strategic acquirer for Logistyx, as they had a similar vision of the market opportunity and how Logistyx could add value to the E2open portfolio.”
New York City-based Firmament is a private investment firm providing structured equity capital to small and medium-sized companies that are active in the healthcare services, logistics, business services, health & wellness, education technology, environmental services, cybersecurity and life sciences.
“We are delighted by this transaction and excited for the next chapter of Logistyx,” said Ted Wong, a principal at Firmament. “From its formation in 2017, Logistyx has provided a leading multi-carrier parcel software solution, and we believe E2open is uniquely positioned to take Logistyx forward as part of a complete supply chain platform to global enterprise customers.”
Insight Venture Partners makes expansion and late-stage investments in software, e-commerce, internet and data-services businesses. Founded in 1995, Insight has raised 12 funds totaling more than $90 billion and made more than 600 investments, 55 of which have achieved an IPO. The firm is headquartered in New York City.
© 2022 Private Equity Professional | April 12, 2022
