THE "GOLDEN AGE" FOR LOGISTICS TECHNOLOGY M&A AND FUNDRAISING - LOGISTICS TECHNOLOGY INDUSTRY UPDATE | JULY 2021
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
THE “GOLDEN AGE” FOR LOGISTICS TECHNOLOGY
M&A AND FUNDRAISING
LOGISTICS TECHNOLOGY INDUSTRY UPDATE | JULY 2021
3
TABLE OF CONTENTS
Key Industry Takeaways 4
Capital Raising Outlook 5
M&A Outlook 6
Buyer Q&A: Valsoft 7
Segment Highlights:
Warehouse Software 8
Logistics FinTech 9
Supply Chain Visibility 10
Select M&A Transactions 11
Select Capital Raises 12
Report Contributors 13
Endnotes 14
CONTACT OUR LOGISTICS TECHNOLOGY
INDUSTRY EXPERTS
Burke Smith
Managing Director
310-872-0038
bsmith@capstonepartners.com
Nathan Feldman
Associate
845-416-5906
nfeldman@capstonepartners.com
Capstone Partners is one of the largest and most active independently-owned
investment banking firms in the United States. Over the past 20 years, thousands
of business owners, investors, and creditors have trusted us to help guide their
strategic decisions and maximize financial outcomes at every stage of the
corporate lifecycle.
MIDDLE FULL SUPERIOR TOP ESTABLISHED
MARKET SERVICE CLIENT RANKED BRAND
FOCUS CAPABILITIES RESULTS PERFORMANCE REPUTATION
A DIFFERENT KIND OF FIRM. BUILT FOR THE MIDDLE MARKET.
Mergers & Capital Financial Special ESOP
Acquisitions Advisory Advisory Situations Advisory
&
Restructuring
• Sell-side Advisory • Transaction Advisory • Special Situations
• Equity Advisory • Interim Management
• Buy-side Advisory • Debt Advisory • Turnaround
• Recapitalizations • Performance • Restructuring
• Infrastructure Finance Improvement
• Mergers & Joint • Bankruptcy
Ventures • Valuation Advisory
• Insolvency
• Litigation Support
Sign Up for Industry Insights.
Delivering timely, sector-specific intelligence to your inbox
One of our core capabilities is to deliver sector-specific intelligence
designed specifically for industry leaders, private equity firms and
their advisors. Our industry reports and featured articles deliver
real-time access to key sector data including:
• Emerging industry trends
• Acquirer and investor appetites
• Mergers & acquisitions market analysis
• Notable transactions
• Public company data
Receive email updates with our proprietary data, reports, and insights
as they're published for the industries that matter to you most.
Subscribe
capstonepartners.com
Logistics Technology Industry
Capital Raise & M&A Boom
KEY INDUSTRY TAKEAWAYS
Capstone Partners’ Transportation & Logistics (T&L) Group is pleased to share its Logistics Technology
report. Through our ongoing conversations with active industry players and analysis of trends during COVID-
19, we have identified several key takeaways below, followed by an in-depth overview of industry dynamics
and interviews with business owners on the following pages.
1. Capital raising has heated up in Q1 and Q2 of 2021 with a total of 96 deals and $2.8 billion raised in
Logistics Technology.
2. Correspondingly, the M&A market remains frothy with a record 106 deals completed over the last
twelve months and an average EV/Revenue multiple of 3.0x in 2021.
3. Overall, the industry continues to mature and shift to later stage capital raises, which should also drive
M&A activity for years to come.
4. Strategic acquirers such as Valsoft, which owns logistics software provider Navitrans, are diving
deeper into the space looking for add-ons.
5. Armed with $1.3 trillion in dry powder, private equity buyers are on the hunt for companies with strong
growth prospects and figure to be active acquirers in the industry.
6. Sectors such as Warehouse Software, FinTech, and Supply Chain Visibility continue to be some of the
hottest in Logistics Technology.
Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debt
advisory, financial advisory, and equity capital financing to help privately owned businesses and private equity
firms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.
To learn more about Capstone’s wide range of advisory services and Logistics Technology industry expertise,
please contact Capstone Managing Director Burke Smith.
4
Logistics Technology | July 2021
CAPITAL RAISING OUTLOOK
Logistics Technology is one of the new darlings of the venture capital community, and rightfully so. While
companies like Project44, Convoy, and ShipBob promise to revolutionize whole sectors of logistics, many
more like RoadSync, Ship Hero, and Optimal Dynamics offer vast improvements over legacy, paper-based
processes. There’s money to be made in logistics tech for both founders and venture capitalists (VCs), and
we don’t expect that to end anytime in the near future.
Key Takeaways Logistics Technology Capital Raises
Mature into Later Rounds
1. The overall volume of capital raises has skyrocketed
First & Second Round
— So far in 2021, Q1 and Q2 each recorded 48 deals.
Third and Later Rounds
At this pace, 2021 will beat the record of 172 deals set
in 2020 by 12% and will be a 94% increase over 100%
Percentage of Total Activity
2018 volume.
80%
2. Total capital poured into Logistics Technology has
risen dramatically — Over the last twelve months 60%
(LTM) ending June 30th, the industry has raised over
40%
$5.3 billion ($1.3 billion per quarter). This is a drastic
increase over LTM June 30th, 2020 which saw less than 20%
half of that amount—$2.5 billion—raised.
0%
3. Both large and small deals have flourished — While 2018 2019 2020 LTM LTM YTD YTD
there have been 11 “mega deals” over $100 million over 2020 2021 2020 2021
the LTM, the vast majority have been driven by deals
Source: Capital IQ
below that threshold. In total, 113 deals were under $100
million in value averaging $18.0 million per raise. 45 deals did not disclose the amount of capital raised.
4. Shift to later stage deals indicates a maturing industry in 2021 — Deals where companies are raising
their first and second round of capital only accounted for 53% of deal volume so far in 2021 compared to
68% for 2020. However, this isn’t to say volume for earlier capital raises have fallen off, they haven’t, just
the overall total % has shifted to companies raising their third+ round.
Capital Raised and Investment Activity Continues to Climb
Seed & Earlier Venture Series A
Series B Series C Series D+
Growth Total Capital Raised
60 $2,500
50 $2,000
Funding in Millions
Total Deal Count
40
$1,500
30
$1,000
20
10 $500
0 $0
Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2
2018 2019 2020 2021
Year-to-date (YTD) and Last Twelve Months (LTM) as of June 30
Source: Capital IQ and Capstone Research;
5
Logistics Technology | July 2021
M&A OUTLOOK
With the industry maturing, there is no doubt that M&A will also increase. In fact, it has already started. LTM
2021 saw a record 106 transactions announced versus only 89 in 2020. Even despite the overall M&A market
slowdown during the first half of 2020, the LTM represents the most transactions over a rolling four-month
period in Capstone Partners’ entire transaction dataset. This is largely due to a number of macro trends:
Macro Trends Driving M&A in 2021
1. (The most obvious) Covid-19 has shone a spotlight on the industry, accelerating adoption and growth.
2. Private equity is raising more capital than ever…
3. …and was not able to deploy that dry powder in the first half of 2020 because investment committees
and lenders put a hold on new deals, focusing on their existing portfolio—creating a deal bubble.
4. The Biden Administration’s plan to raise the capital gains tax has pushed a lot of sellers into the market.
5. Strategics have started to partake in this “land grab” moment in history, looking to fill product gaps and
reach new customers.
M&A Overview
EV/R Deal Volume Nathan Feldman
3.5x 120 Associate
3.0x 100
Average EV / Revenue
“Increased interest in Logistics Technology has
2.5x
80 not only driven volume, but valuations as well.
Deal Volume
2.0x Industry-wide multiples have reached a record
60 high of 3.0x Revenue in 2021. With so much dry
1.5x powder and debt capital available, private
40 equity has been increasingly competitive on
1.0x
deals. Strategics on the other hand have had to
0.5x 20
push out of their comfort zone, often by
2.4x 2.6x 2.9x 1.5x 3.0x
0.0x 0 preempting a broad marketing process or
acquiescing to seller desires. It’s one of the
2017 2018 2019 2020 2021
strongest sellers’ markets Capstone has ever
2021 year-to-date (YTD) as of June 30
seen.”
Source: Capital IQ and Capstone Research;
Notable 2021 Deals
June 2021 May 2021 April 2021
Alpine SG (ASG), an acquirer of vertical Project44’s acquisitions of ClearMetal MercuryGate’s acquisition strengthens its
market SaaS (software as a service) bolsters its capabilities in artificial intelligence Transportation Management Software (TMS)
companies backed by Alpine Investors, will (AI) and predictive analytics to optimize platform in last mile, parcel, and less-than-
deploy significant capital and resources to supply chains. truckload (LTL) sectors. Providers are racing
accelerate Trucker Tools’ growth. to offer the most comprehensive solutions.
6
Logistics Technology | July 2021
BUYER Q&A: VALSOFT
Valsoft acquires and develops vertical market software companies, enabling each
business to deliver the best mission-critical solutions for customers in their
respective industry or niche. In February 2020, Valsoft acquired Navitrans, a
provider of integrated logistics, transportation, warehousing, and freight forwarding
software. A key tenet of Valsoft's philosophy is to invest in well-established
businesses and foster an entrepreneurial environment that molds companies into
leaders in their respective industries. Valsoft looks to buy, hold, and create value
through long-term partnerships with existing management.
What drew you to Navitrans and how are you down as they felt more comfortable knowing a
looking to grow that business? Logistics multi-national company was behind the software
Technology is a very interesting space and was and they wouldn’t outgrow us as a vendor.
one of the first verticals we looked at when we
started Valsoft, so we were extremely happy that In your eyes, what makes vertical market SaaS
we were able to enter with an industry leader like businesses more or less successful? Really it’s
Navitrans. Navitrans provides Transportation about business fundamentals—is the software
Management Software (TMS), focusing on larger mission-critical? Are there high switching costs?
fleets and moving freight cross-border is Can you forecast subscription or maintenance
important. Freight forwarding, customs software revenues? Those are important. Also, for us,
that makes it more seamless going from Country A customer churn is very important. This should
to B, and warehouse management solutions are all ideally be four to eight percent and it shows that
growth areas. Yard management is also a space you’re focusing on the existing client base. One
that we’d love to partner with or acquire a mistake I’ve seen a lot of entrepreneurs make is
business that does that so we can offer it as a underinvesting in sales & marketing and
solution to our customers. overinvesting in R&D. We categorize businesses
into legacy, core, and growth lifecycles and they
Are you looking at those sectors as an add-on each have different sales strategies. For legacy, I
for Navitrans or as a new standalone platform? would probably be under five percent of revenue
We’re interested mainly because of Navitrans, but and look for acquisition opportunities to grow
if it has scale we’d love to run it as a standalone market share. For core and growth businesses,
business as its own P&L. Typically that’s around $5 that’s probably around five and 15 percent,
to $10mm ARR (annual recuring revenue), plus or respectively—though take those numbers as a
minus, and if it has good market positioning. For us grain of salt.
that means having a decent number of clients and
being a player in the market that they’re Why do entrepreneurs choose to sell their
competing in. We’ve done deals in the past where business to Valsoft? We can relate to
the top client has 20, 30 percent of the recurring entrepreneurs because we’ve built businesses and
revenue. I think it’s just a matter of understanding know what they’re going through. It’s our capital
the relationship. One of our companies has a big and we have a buy and hold model where they’re
public client that made up 30% of the ARR, though only selling their business once. Because of that,
it was a multi-decade old relationship and we got we preserve their legacy and take care of their
comfortable with that. Actually, as soon as Valsoft clients and customers, often giving stakeholders
acquired the business, the public client doubled more opportunities within Valsoft as a whole.
Steph Manos, Co-Founder, VP and Head of M&A
Steph co-founded Valsoft where he is responsible for Mergers & Acquisitions,
Technology, Strategy, and Research. He is also an early investor in Valnet, a
company managing some of the world’s biggest entertainment content-rich
web properties, including TheRichest.com and ScreenRant.com. Steph lives in
Montreal with his wife and three kids.
7
Logistics Technology | July 2021
SEGMENT HIGHLIGHT: WAREHOUSE SOFTWARE
Recent tailwinds in the e-commerce space have Venture Capital Activity in
created heightened demand for warehouse Warehouse Software
management systems (WMS). According to Grand
Pre-A Series E Series D Series C
View Research, the market size for WMS at the end
Series B Series A Growth
of 2020 was valued at $2.64 billion1 and is
projected to grow at a compound annual growth $700
rate of 15.3% to reach $8.1 billion by 2028,
reflecting a 307% total increase over the eight- $600
Capital Raised in Millions
year period (2020-2028).2 $500
Investors have taken notice of this phenomenon, $400
evidenced by the significant increase in
financing for warehousing software companies, $300
WMS, and otherwise. Funding for companies in
$200
the space for Q4 in 2020 and Q1 in 2021 totaled
$395.48 million and $199.86 million, respectively. $100
ShipBob, alone, raised $200 million in Series E
funding at the end June.3 These figures greatly $0
eclipse the average of $60-70 million recorded 2018 2019 2020 2020 2021
per quarter throughout the two previous years. YTD YTD
Year-to-date (YTD) as of June 30
Source: Capital IQ and Capstone Research;
Most capital raises over the last 18 months have
been either Series C or Growth Capital. This
indicates
x that the warehouse software sector is maturing as investors believe that they will receive quick
returns on their capital. Some companies, including Shipmonk and STORD, have even received multiple rounds
of funding within months of each other. Shipmonk received $65 million in growth capital (January 2021) less
than two months after having received a round of $290 million (December 2020).
The COVID-19 pandemic has made it significantly more difficult for early-stage companies in the warehouse
software sector to kickstart operations and attract capital, as investors focus on later-stage companies that
are less risky. However, as the pandemic is winding down, we have begun to witness the return of Series A
funding to the space. Four of the last ten private placement transactions in warehouse software have been
Series A compared to only one throughout the entirety of 2020. Furthermore, M&A transactions in the space
have been unabating throughout the pandemic. Ten deals have been closed since the beginning of 2020, and
we expect that number to increase, as we move towards the second half of 2021.
VC HIGHLIGHT: 3PL Central Receives $45 Million from Mainsail Partners (April 2021)
“ The increase in ecommerce volume and
omnichannel fulfillment over the past year has
accelerated the adoption of technology by
• The $45 million in funding is slated to help third-party logistics (3PL) warehouses to meet
3PL Central improve their product and customer demand from ecommerce merchants
support future acquisitions and improve satisfaction of end customers. We
believe 3PL Central is well-positioned to deliver
• 3PL Central’s cloud-based WMS platform even greater value to customers as part of this
helps warehouses modernize their operation
allowing for greater visibility to customers,
technology cycle.
”
automation of routine tasks, and easier - Jason Payne, Co-Founder
management of inventory Mainsail Partners4
8
Logistics Technology | July 2021
SEGMENT HIGHLIGHT: LOGISTICS FINTECH
With the global FinTech industry expected to reach $324 billion in value by 20265, companies in the space
touch almost every sector – including transportation and logistics. “The logistics industry is going through a
transformation, where a lot of these paper and manual processes are rapidly going to digital,” Relay Payments
CEO Ryan Droege stated in a press release.6 The importance of the broader industry is clearly represented in
public company valuations that have grown in 2021, especially payment technology companies such as
Paypal (14.9x revenue), ACI Worldwide (4.2x), EVO (6.0x) and others.
With such fierce competition among trucking companies,
broker, forwarders, etc., FinTech has become an integral Logistics-Related Fintech Deal Volume
solution to lower costs and improve relationships with
Qtr1 Qtr2 Qtr3 Qtr4
customers.7 RoadSync, a portfolio company of
Companyon Ventures, has become a notable player in the
space, having raised $30mm in June 2021 from Tiger 2021
Global Management. CEO Robin Gregg has called
RoadSync the “Square” of trucking, an ambitious but not
unreachable comparison.8 2020
Overall activity in Q2 2021 was greater than all of 2018’s
volume combined and is on track for a very active year.
2019
Private capital is pouring into the space – in January, Relay
Payments announced a $43 million capital raise,9 which is
another big win for Logistics FinTech. Significant backers
include Tiger Global, Base10 Partners, Hyde Park Venture 2018
Partners, Ribbit Capital, and Spark Capital.
0 5 10
Deal Count
Investor Spotlight
Fintech Valuations
BPO
Payment Processing
Companyon is an investor in RoadSync, an
online payment provider for logistics Payment Technology
16x 14.2x
Total Enterprise Value/Revenue
“ We at Companyon Ventures invest in post-seed
early expansion-stage B2B SaaS startups. While we
14x
are industry agnostic, we do favor certain verticals 12x
where we see significant inefficiencies in operations.
10x
One market that is ripe for technology-based 8x 7.1x
efficiencies and innovation is Supply Chain and
Logistics. In our diligence of this investment, it 6x
amazed us that the world still has pockets of industry
still lacking in efficient automation. The US 4x 3.1x
transportation industry is a $700B industry with
2x
hundreds of thousands of businesses including
trucking, warehousing, brokerage, and services 0x
companies. These businesses routinely invoice and
Jan-21
Apr-21
Jul-21
Jan-20
Apr-20
Jul-20
Oct-20
Oct-18
Oct-19
Jul-18
Jan-19
Apr-19
Jul-19
accept paper payments - like cash and check. The
industry even has its own specialized paper check
product, fleet checks. Sixty percent of small trucking
companies use paper invoices and 60% of logistics
businesses report getting paid in paper checks. Year-to-date (YTD) and Last Twelve Months (LTM) as of June 30
” Source: Capital IQ and Capstone Research;
9
Logistics Technology | July 2021
SUPPLY CHAIN VISIBILITY
Facing a surge in e-commerce and global transportation disruptions from the pandemic, shippers are turning
to real-time transportation visibility platforms (RTTVPs) to achieve greater oversight of supply chains. The
RTTVP market has been growing at a rapid pace globally, doubling in size in North America last year to nearly
$300 million and is expected to reach $1 billion by 2024, according to Gartner.10 This land grab has driven
platforms to strengthen their capabilities via internal investment, acquisitions, or partnerships. M&A activity
remains active in the RTTVP market with seven acquisitions in 2021 equaling the amount set in the year prior.
x
Key Areas of Growth
• Multi-modular compatibility: Companies have expanded their Global Market: Real-Time
offerings to apply to multiple modes of transportation. For example, Transportation Visibility
FourKite’s acquisition of Haven and project44’s buyout of Ocean Platforms
Insights enabled both firms to reach more ocean carriers and $1,400
+$700
improve the traceability of ocean shipments.
Market Size in Millions
$1,200 million
• Wider geographic reach: Providers are capitalizing on the demand $1,000
from international and regional logistics companies, expanding $800
geographically. Sixfold and Transporeon merged to form Europe’s $600 +$130
largest RTTV platform and seek to expand into North America. million
$400
• Integrating Artificial Intelligence: Predictive analytics and AI are $200
the future of supply chain visibility. project44 is keenly aware, $0
having acquired ClearMetal to bolster its capabilities. C.H. Robinson, 2019 2020 2024
also partnered with Microsoft to leverage Azure’s internet of things Source: Gartner
(IoT) solutions to the carrier’s vast logistics network.
Venture capital has supported companies’ growth with project44’s $200 million Series E funding, valued at
$1.2 billion, being the largest investment in 2021 to-date. Other notable raises are from FarEye and FourKites
with $100 million each to advance their machine learning and data science capabilities. RTTVP provider
Shippeo received $32 million to further scale its AI platform’s data-aggregating abilities. Capstone Partners
expects more firms to enter the market to serve different niches, further fragmenting the market. This trend
will fuel strong M&A activity as larger firms acquire smaller players to grow their presence and to provide for
the needs of a global, diverse customer base.
Venture Capital Financing 2021
$200mm
$100mm $100mm
$32mm $35mm
Source: Capital IQ, Pitchbook, Crunchbase, Capstone Research
10Logistics Technology | July 2021
SELECT M&A TRANSACTIONS
Enterprise EV / LTM
Date Target Acquirer Target Business Description Value (mm) Revenue EBITDA
Trucker Develops load tracking and digital freight matching
06/22/21 Alpine SG - - -
Tools software solutions for truck drivers.
Provides warehouse management software for intra
06/15/21 XELOG proLogistik logistics processes. - - -
Builds cloud-based software for logistics companies to
06/10/21 TNX Logistics Transporeon - - -
optimize daily dispatching.
Offers IoT and blockchain-based supply chain logistics
06/08/21 Modum Roambee solutions. - - -
Skipjack Supply Develops a multi-carrier SaaS parcel platform that
06/02/21 Redwood Logistics - - -
Chain / Proactive provides rating and labeling capabilities to WMS.
Offers supply chain software and services for
05/27/21 BluJay Solutions E2open transportation, yard, and fleet management. $1,700.2 - -
Develops artificial intelligence software for
05/27/21 ClearMetal project44 supply chain visibility operations. - - -
Provides GPS fleet tracking software and E-logistics
05/19/21 GPS Insight Accel-KKR solutions for organizations with mobile assets. - - -
Designs and develops demand responsive transport
05/11/21 Padam Mobility Siemens Mobility - - -
software solutions.
Portrix Logistics Develops global price management software for
05/10/21 Descartes forwarder, carrier, and shipper industries. $25.2 - -
Software
ModivCare
05/06/21 WellRyde Operates a transportation management platform. - - -
(Nasdaq:MODV)
BluJay Develops SaaS railroad transportation management
05/05/21 Raven Logistics systems. - - -
Solutions
Connected Offers end-to-end integrated supply chain and retail
04/23/21 Blue Yonder Group $8,597.6 8.5x 35.0x
Solutions management software solutions.
Returnly Affirm Holdings Provides online return, post-purchase payments, and
04/21/21 $257.6 - -
Technologies (Nasdaq:AFRM) reverse logistics solutions.
Peak-Ryzek / Optical Develops supply chain automation and inventory
04/09/21 Sole Source Capital management software. - - -
Phusion
Operates a cloud-based logistics platform for
04/07/21 Haven FourKites trading companies. - - -
Cheetah MercuryGate Provides real-time logistics and dispatches solutions for
04/06/21 delivery, less-than-truckload, and fleet operations. - - -
Software International
03/24/21 Trackunit HgCapital Develops SaaS fleet management systems. - - -
Offers transportation, warehouse, and data
03/15/21 Base Logistics Staci management solutions for the logistics industry. - - -
Provides cloud-based software solutions for
03/11/21 ShipXpress Kaleris transportation and industrial businesses. - - -
Develops web-based global trade and logistics
03/01/21 QuestaWeb Descartes $36.0 - -
management software solutions.
Knight-Swift Operates a mobile driver workflow platform for
02/01/21 Eleos Technology trucking fleets and truck operators. $52.0 - -
Transportation
01/07/21 Unifaun Consignor Group Offers SaaS transport management software solutions. - - -
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
11Logistics Technology | July 2021
SELECT CAPITAL RAISES
Round Post Money Capital
Date Target Acquirer Target Business Description Type Valuation (mm) Raised
Menlo, Bain, Hyde Develops online shipping and fulfillment software for
06/29/21 Shipbob Series E $1,000.0 $200.0
Park, Softbank small e-commerce businesses
Tiger Global, Hyde Designs and develops an online payment platform for
06/24/21 RoadSync the warehousing, driving, and logistics industries. Series B - $30.0
Park, Base10
Operates a logistics payment platform for efficient
06/15/21 PayCargo Insight Venture Series B - $125.0
transfers of cargo.
Cleo Offers a cloud integration platform for logistics and
06/09/21 H.I.G. Capital transportation, E-commerce, and other industries. Growth - -
Communications
Operates a cloud-based e-commerce fulfillment,
06/09/21 Ship Hero Riverwood Capital Growth - $50.4
logistics, and WMS SaaS platform
Develops a cloud-based platform for supply
06/03/21 Roambee PSA unboXed chain monitoring services. Growth - -
Goldman Offers a cloud-based visibility platform for
06/01/21 project44 shippers and third-party logistics companies. Series E $1,200.0 $202.0
Sachs
Hearst, Provides SaaS-based freight forecasting and analytics
05/19/21 FreightWaves solutions. Venture - $16.1
Triangle Peak
Offers a transportation monitoring and analytics
05/11/21 Route42 DKV Mobility Growth - -
platform for trucking companies.
Develops self-driving trucks to enable the
05/07/21 PlusAI BlackRock, D.E. Shaw commercialization of autonomous transport. Growth - $150.0
Provides a cloud-based visibility platform for
05/07/21 FourKites Cardinal Health freight brokers, carriers, and 3PL companies. Growth - -
FirstMark, Offers cloud-native software to automate warehouse
04/21/21 CognitOps management. Series A - $11.0
Chicago Ventures
Mercury, Develops a cloud-based supply chain integration
04/16/21 Chain.io Venture - $5.0
Grand platform to boost data visibility across systems.
Pole Star Space Wavecrest Provides SaaS software solutions and APIs for the
04/07/21 Growth - -
Applications Growth, Abry maritime, finance, and government sectors.
Mainsail Develops on-demand warehouse management software
04/05/21 3PL Central for third party logistics companies. Growth - $45.0
Management
Tiger, Provides financial supply chain management
03/30/21 HighRadius solutions to automate receivables functions. Series C $3,100.0 $300.0
Susquehanna, D1
Founds, Susa, Offers a cloud-based software platform for warehousing
03/19/21 STORD and distribution services. Series C - $65.0
Salesforce, Bond
BNP Paribas, Designs and develops a business-to-business logistics
03/18/21 Cubyn software platform. Series C - $41.8
Eurazeo, DN, 360
NewSpring Capital, Offers SaaS warehouse and inventory
02/18/21 Deposco management solutions. Series A - $35.4
Aspen Capital
Develops order fulfillment solutions for
01/27/21 Shipmonk Periphas Capital ecommerce industries. Growth - $65.0
Halma, IP, BP, Offers an AI autonomous vehicle and warehouse
01/05/21 Oxbotica Series B - $47.0
Tencent, BGF, Doxa navigation platform.
New Enterprise, Provides SaaS solutions for fully and semi-
10/28/20 Outrider autonomous freight and transportation fleets. Series B - $65.0
Henry Crown, Koch
Develops an application that matches carriers with
10/02/20 Uber Freight Greenbriar Equity shippers Series A $3,300.0 $500.0
Source: Capital IQ, PitchBook, FactSet, and Capstone Research
12Logistics Technology | July 2021
LOGISTICS TECHNOLOGY REPORT CONTRIBUTORS
Burke Smith
Managing Director
bsmith@capstonepartners.com | 310-872-0038
Burke brings to Capstone Partners over 20 years of experience as an advisor to or
leader of middle market companies, including several asset-based trucking and
warehousing operations. Over his career as an M&A advisor, Burke has executed more
than 45 transactions with a combined value in excess of $40 billion.
Burke began his career working on Wall Street. He initially trained at Wasserstein Perella
& Co., where he worked directly for famed M&A banker Bruce Wasserstein. Burke then
joined Donaldson, Lufkin & Jenrette (DLJ) as an early member of the firm’s Exclusive
Sales Group, which became one of the most successful middle market sell-side
advisory practices on Wall Street. Following the acquisition of DLJ by Credit Suisse,
Burke joined UBS as an Executive Director in the mergers and acquisitions group.
Jay Mercier
Vice President
jmercier@capstonepartners.com | 404-934-6362
Jay serves as a Vice President in Capstone’s Transportation and Logistics Group. He
brings over 10+ years of capital markets experience spanning Investment Banking, Credit
Trading and Equity Derivatives Trading. Prior to joining Capstone, Jay worked as a
Director at Cowen where he was a member of the Outsourced Trading Team. He was
responsible for the account coverage of institutional buy-side accounts and advised
clients on risk mitigation strategies with the use of exchange-traded derivatives.
Nathan Feldman
Associate
nfeldman@capstonepartners.com | 845-416-5906
Nathan joined Capstone Partners in 2015 and while he has held multiple different roles
at the firm, he currently works as an investment banking associate on the firm’s
Transportation & Logistics team. His responsibilities primarily include helping middle
market business owners throughout the industry execute exit, recapitalization, and
capital raise transactions.. Nathan earned his BA from Brandeis University with a degree
in English, Business and Physics.
Special Contribution by Analyst Spencer Baxter and Summer Interns John Lindsey Ethan Reiser
13Logistics Technology | July 2021
ENDNOTES
1. Grand View Research, “Warehouse Management Systems Market Size, Share & Trends Analysis Report By Component
(Services, Software), By Deployment (Cloud, On‐premise), By Function, By Application, And Segment Forecasts, 2021 ‐ 2028,”
https://www.grandviewresearch.com/industry‐analysis/warehouse‐management‐system‐wms‐
market#:~:text=The%20global%20WMS%20market%20size,USD%203.01%20billion%20in%202021.&text=The%20global%20W
MS%20market%20is,USD%208.18%20billion%20by%202028, accessed June 23, 2021.
2. Grand View Research, “Warehouse Management Systems Market Worth $8.1 Billion By 2028,”
https://www.grandviewresearch.com/press‐release/global‐warehouse‐management‐system‐wms‐market, accessed June 23,
2021.
3. PR Newswire, “ShipBob Raises $200 Million in Series E Funding, Led by Bain Capital Ventures, Valuing the Ecommerce Logistics
Platform Well Over $1 Billion,” https://www.prnewswire.com/news‐releases/shipbob‐raises‐200‐million‐in‐series‐e‐funding‐
led‐by‐bain‐capital‐ventures‐valuing‐the‐ecommerce‐logistics‐platform‐well‐over‐1‐billion‐301321574.html, accessed June 29,
2021.
4. PR Newswire, “Mainsail Partners Leads Syndicate in Fresh $45 Million Capital Raise for 3PL Central,”
https://www.prnewswire.com/news‐releases/mainsail‐partners‐leads‐syndicate‐in‐fresh‐45‐million‐capital‐raise‐for‐3pl‐
central‐301261953.html, accessed June 23, 2021.
5. Market Data Forecast, “Global Fintech Market Research Report ‐ Segmentation By Technology (API; AI; Blockchain; Distributed
Computing), By Service (Payment; Fund Transfer; Personal Finance; Loans; Insurance; Wealth Management), By Application
(Banking; Insurance; Securities; & Others), By Deployment Mode (Cloud & On‐premises), By Region, Competition, Forecast &
Opportunities (2021 – 2026),” https://www.marketdataforecast.com/market‐reports/fintech‐market, accessed June 30, 2021.
6. The Business Journals, “How the e‐commerce boom skyrocketed Startups to Watch honoree Relay Payments,”
https://www.bizjournals.com/atlanta/inno/stories/profiles/2021/03/25/relay‐payments‐e‐commerce‐growth.html, accessed
June 30, 2021.
7. Fintech Ranking, “Can FinTech Revolutionize the Logistics Industry and Introduce Much‐Needed Change?”
https://fintechranking.com/2021/02/09/can‐fintech‐revolutionize‐the‐logistics‐industry‐and‐introduce‐much‐needed‐
change/, accessed June 30, 2021.
8. The Business Journals, “Transportation payments platform RoadSync raises $5.7M,”
https://www.bizjournals.com/atlanta/inno/stories/fundings/2020/04/01/transportation‐payments‐platform‐roadsync‐
raises.html, accessed June 30, 2021.
9. PR Newswire, “Relay Payments Raises $43 Million in New Funding to Transform Transportation Payments,”
https://www.prnewswire.com/news‐releases/relay‐payments‐raises‐43‐million‐in‐new‐funding‐to‐transform‐transportation‐
payments‐301203402.html, accessed June 30, 2021.
10. Gartner, “Magic Quadrant for Real‐Time Transportation Visibility Platforms,” https://www.gartner.com/doc/reprints?id=1‐
25SQ42A3&ct=210414&st=sb, accessed on June 24, 2021.
Common Goals. Uncommon Results.
Disclosure
This report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger and
acquisition activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Any
reference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell or
take any other action with respect to any security of any such company. We are not soliciting any action with respect to any security
or company based on this report. The report is published solely for the general information of clients and friends of Capstone
Partners. It does not take into account the particular investment objectives, financial situation or needs of individual recipients.
Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors.
This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should not
be relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that may
cause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinions
expressed are our present opinions only and are subject to change without notice. Additional information is available upon request.
The companies mentioned in this report may be clients of Capstone Partners. The decisions to include any company in this report is
unrelated in all respects to any service that Capstone Partners may provide to such company. This report may not be copied or
reproduced in any form or redistributed without the prior written consent of Capstone Partners. The information contained herein should
not be construed as legal advice.
14Market Presence
With a long-established U.S. footprint, together with an international partner
platform, we provide clients with broad expertise and access to key market
relationships on a global basis. Our presence is backed by ~200 professionals in the
U.S. with 450+ professionals across 43 countries.
218 $12.5B 30% 6th
M&A transactions aggregate of our deals globally ranked for
completed in 2020 transaction value are cross- deals under $500m
border
$65.1M 51 65%
average deals involving foreign completed with a
transaction private equity firms European partner
value
United States International
170+ professionals 450+ professionals
12 offices 60+ offices in 43 countries
Boston · Chicago · Dallas · Asia: China · India · Japan · Thailand
Denver Detroit · Los Angeles · Africa: Congo · Egypt · Ghana · Ivory Coast · Mauritius · Morocco · Nigeria · Senegal · South Africa
New York Orange County · Americas: Toronto · Vancouver · Argentina · Brazil · Chile · Colombia · Mexico · Panama & Central
Philadelphia Richmond · San America · Peru
Diego · Tampa Europe: Belgium · Bosnia & Herzegovina · Croatia · Czech Republic · Finland · France · Germany ·
Hungary · Ireland
Italy · Netherlands · Poland · Portugal · Russia · Serbia · Slovakia · Slovenia · Spain · Sweden ·
United Kingdom
capstonepartners.comYou can also read
