ToolsGroup Secures Accel-KKR Funding to Boost Growth
Investment to build on supply chain planning software firm’s success
May 3, 2018 – Boston – ToolsGroup today announced it has secured a growth equity investment from Accel-KKR, a leading Silicon Valley technology-focused investment firm. ToolsGroup will use this funding to build on its successful growth in the $4 billion Supply Chain and Integrated Business Planning (IBP) market1. The funding will also help ToolsGroup extend its lead in AI, machine learning and Cloud/SaaS technologies for supply chain planning applications.
ToolsGroup provides planning software for companies that must guarantee high service levels despite increasing demand volatility and distribution complexity. ToolsGroup’s SO99+ application spans demand forecasting, demand planning & sensing, multi-echelon inventory optimization, and S&OP. It was among the first supply chain planning tools to employ advanced self-learning models augmented by AI and machine learning for autonomous planning.
Accel-KKR’s funding comes to ToolsGroup on the heels of three consecutive years of accelerating subscription revenue growth and new customer acquisitions. During this time the company successfully transitioned to a predominantly SaaS model with sustained profitability and deployed software in 46 different countries. Advanced concepts like self-learning, automation and predictive analysis, which ToolsGroup has been championing for years, are now approaching mainstream adoption. With Accel-KKR’s funding, the company will expand to help more global companies.
In addition to the minority shareholder investment, Accel-KKR Principal Joe Porten and supply chain software industry expert Ross Elliot will be a strong addition to ToolsGroup’s board of directors.
“ToolsGroup has a strong foundation to build upon – award-winning software, top-tier customer satisfaction and retention rates, an experienced management team, a global partner network and a durable, subscription-based business model.” commented Joe Porten. “With demand for advanced supply chain software escalating, ToolsGroup is well positioned to capture a disproportionate share of the market growth. Our growth equity investment will help the company’s operations scale to take advantage of this opportunity.”
Over the past five years ToolsGroup has been recognized by Gartner as a ‘Leader’ in the Magic Quadrant for Supply Chain Planning System of Record (SOR) and as a ‘Visionary’ in its Magic Quadrant for S&OP (Sales & Operations Planning) Systems of Differentiation (SOD). In addition, ToolsGroup has been at the top of the Nucleus Research Inventory Optimization Value Matrix four years in a row. ToolsGroup and its customers have also earned countless other awards and recognition from organizations such as CSCMP, Frost and Sullivan, Retail Week and the European Supply Chain Excellence Awards.
“As we continue to scale our global business, Accel-KKR’s capital allows us to continue to invest in the advanced analytics product and talent of a world class company,” concluded Joseph Shamir, ToolsGroup’s founder and CEO.
Accel-KKR is a technology-focused investment firm with $4.3 billion in capital commitments. The firm focuses on software and IT-enabled businesses well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value through significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority-growth investments, and credit alternatives. Accel- KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions. Accel-KKR is headquartered in Menlo Park with additional offices in Atlanta and London.
1 Gartner Market Share: Supply Chain Management, Worldwide, 2016, June 9, 2016, Chad Eschinger