Business spend management vendor Coupa Software has acquired supply chain design and planning player LLamasoft for $1.5 billion.

Both companies are headquartered in the US and LLamasoft’s technology is used by global brands such as Boeing, Danone, Home Depot and Nestle.

Coupa stated that the acquisition will strengthen its supply chain capabilities, enabling businesses to drive greater value through business spend management (BSM), adding that the pandemic has demonstrated the importance of supply chain agility.

“With demand uncertainty on one hand, and supply volatility on the other, companies are in need of supply chain technology that can help them assess alternatives and balance trade-offs to achieve desired results," read the statement. “LLamasoft provides these capabilities with an AI-powered cloud platform that empowers firms to make smarter supply chain decisions faster.”

Launched in January, LLamasoft’s llama.ai gives artificial intelligence-powered decision making across the supply chain, allowing organisations to create purpose-built applications that leverage an end-to-end decision data model.

These applications can run 'what-if' scenarios and surface valuable insights before organisations make key business decisions.

Rob Bernshteyn, chairman and chief executive at Coupa, said: “LLamasoft’s deep supply chain expertise and sophisticated data science and modelling capabilities, combined with the roughly $2 trillion of cumulative transactional spend data we have in Coupa, will empower businesses with the intelligence needed to pivot on a dime.”

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