Supply Chain Management M&A Activity Poised To Bounce Back After Temporary Slowdown, Says Hampleton Partners Report

The number of global M&A transactions in the Supply Chain Management (SCM) Software sector saw a marked drop in the first half of 2024, according to a new market report by Hampleton Partners, the international M&A and corporate finance advisory firm for software and technology companies.

There were 60 deals recorded, the lowest number seen in the sector during a six-month period since before the pandemic. As the report shows, M&A activity surged between 2020 and 2023, reflecting global demand among businesses for SCM solutions which could minimise the disruption to logistics triggered by the pandemic and other geopolitical crises.

While this M&A momentum has slackened in 2024, it likely represents a temporary lull brought about by macroeconomic headwinds and investor caution, rather than the start of a long-lasting downturn in the SCM sector.

There are a number of reasons why the 2024 dip in transactions is likely to make way for more robust transaction figures. One is the currently fragmented nature of the sector, and the inevitability of consolidation waves as SCM companies join forces to provide competitive end-to-end solutions for their clients.

Technological innovation, such as the incorporation of cutting-edge AI and digital twins, is also energising the sector and attracting acquirer and investor interest. Moreover, increasingly stringent legislation impacting logistics, such as the German Supply Chain Act, is bolstering the mission-critical status of SCM solutions, and making the purveyors of such solutions attractive M&A targets.

Citing these factors, Oliver Rupps – Hampleton Partners’ Sector Principal for logistics, digital logistics solutions and tech-enabled supply chain management – said: “We expect an increased level of transactions in 2025 and 2026, with strategic buyers leveraging M&A to broaden their range of SCM capabilities, and private equity firms employing a ‘buy and build’ approach to enhance their portfolios.”

The three most prolific buyers within the Supply Chain Management Software space over the past half-decade have been:

• Descartes – 18 acquisitions, including OCR Services (global trade management software), Aerospace Software Developments (customs declaration RFID software), and BoxTop Technologies Limited (supply chain and freight management software)
• Aptean – 17 acquisitions, including Apparel Business Systems (apparel industry ERP SaaS), 3T Logistics (transportation management SaaS), and trend SWM EDV-Beratung (manufacturing and distribution ERP SaaS)
• Valsoft – 13 acquisitions, including Intelligent Direct (geographic information SaaS), ICL Systems (supply chain visibility and invoice auditing SaaS), and BDK Informatik AG (transport and logistics management SaaS)

The full Hampleton Partners Supply Chain Management Software M&A Market Report 2H2024 reveals the trends influencing strategic and financial deals and discusses specific transactions within five key subsectors: Logistics Software, Supply Chain Analytics, Warehouse Management, Procurement & Supplier Relationship Management, and Inventory Management.

Hampleton Partners’ M&A Market Reports are compiled using data and information from the 451 Research database (www.451research.com); Capital IQ, CB Insights, Gartner, IDC and more.

Hampleton Partners advises technology company owners on M&A and growth financing transactions with strategic buyers or financial investors. Hampleton’s experienced deal makers have advised hundreds of tech industry shareholders and provide hands-on expertise and unrivalled advice to entrepreneurs looking to sell their companies, partially exit, or to accelerate growth.

With offices in London, Frankfurt, Stockholm, San Francisco and Shanghai, Hampleton offers a global perspective with sector expertise in: Enterprise Software, Digital Commerce, IT & Business Services, Artificial Intelligence, Autotech, Cybersecurity, Fintech, Healthtech, HR Tech, and Insurtech. 

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