Reducing costs and improving efficiency are vital for any business. That is where LogicSource comes in. The company is focused on procurement services and providing the technology needed for not-for-resale expenditures. LogicSource helps its customers buy better, and the company plans to expand and help even more people after its recent successful funding round. Read the announcement below for more information.
April 7, 2022 – NORWALK, Conn. – LogicSource, the leading provider of procurement services and technology solutions, announced today that it has raised $180 million from FTV Capital, a sector-focused growth equity investor in innovative enterprise technology and services businesses. With this new funding, LogicSource will enhance its services, technology and data offerings, enter new verticals and further invest in client-centric growth initiatives, helping drive measurable and sustainable profit improvements for the world’s most recognizable brands.
This partnership comes at a pivotal time for LogicSource and the procurement industry as a whole, as today’s business leaders are seeking solutions to combat ever-increasing costs and supply chain constraints amid a highly reactive business environment. Compounding these challenges, inflation recently hit a 40-year record high in February 2022, with the Consumer Price Index for all items increasing 7.9 percent.
LogicSource helps companies increase profitability through better buying. By focusing exclusively on the sourcing and procurement of indirect goods and services – which typically represent 20 percent of a company’s revenue – LogicSource addresses the area of greatest spending inefficiency within most organizations. With over $60 billion of indirect spend and pricing data managed on behalf of its client partners, LogicSource brings a network of more than 100 ready-to-deploy category experts, onsite program management, a world-class supplier ecosystem, and pre-built tools and technology to accelerate time-to-value, ensure supply continuity, drive innovation and generate significant bottom-line improvements. LogicSource boasts a client roster of blue-chip companies such as Big Lots!, Deluxe, Lululemon and Rite Aid, among others.
“LogicSource’s unique combination of outsourced services, software and proprietary data clearly position the company as a category leader in the tech-enabled sourcing and procurement solutions market,” said Brad Bernstein, managing partner at FTV Capital. “Between increasing margin pressure, rising inflation and the unpredictable nature of today’s supply chain environment, senior executives are up against a number of challenging headwinds that necessitate a partner such as LogicSource to better manage their businesses and reduce cost inefficiencies. We are excited to partner with such a high-caliber team to help streamline supplier management and deliver pricing and process improvements to even more brands.”
This funding builds on a strong period of growth for LogicSource. In its past three fiscal years, LogicSource has increased revenues by more than 220 percent, accrued more than $25 billion in managed spend and pricing data, and launched its OneMarket technology platform, a fully integrated Source-to-Pay technology platform with real-time pricing data, market intelligence and configurable services. As a result of this growth, LogicSource was named to Inc.’s fastest-growing companies list in 2020 and 2021 and a Spend Matters 2021 “Provider to Watch” for Source-to-Pay technology providers.
“FTV Capital is the ideal partner for LogicSource as we look to expand into new verticals and rapidly scale our business. The FTV team shares our vision and possesses the unique ability to help us accelerate our growth,” said David Pennino, CEO of LogicSource. “The firm’s approach to smart capital provides LogicSource with access to substantial resources in sales, marketing, category expansion, technology and data development, and much more. As strategic partners, we will build LogicSource into the dominant player in the sourcing and procurement services, technology and data space.”
Bernstein and Alex Malvone, principal at FTV Capital, will join LogicSource’s board of directors, alongside Pennino and Tim Johnson, a long-time director and chief financial officer of Victoria’s Secret.
Lazard acted as the exclusive financial advisor to LogicSource.
The original announcement can be found on LogicSource’s official site.