Empowering Companies to Increase Profit through Better Buying: Our Investment in LogicSource
Today, we’re proud to announce our $180 million investment in LogicSource, the leading provider of procurement services and technology solutions. LogicSource has been performing very well over the past few years and our investment will support the company in enhancing its services, technology, and data offerings, entering new verticals, and further investing to support their clients.
It’s become common knowledge that there’s a global supply chain crisis – we’re confronted with this reality on a daily basis. These constraints, coupled with record levels of inflation are further raising the complexity and cost of doing business. Whether we’re feeling the hit of ballooning grocery bills or enduring months-long delays in furniture orders, these challenges have put pressure on businesses and consumers alike. As a result, now more than ever, business leaders are seeking solutions to reduce costs and purchasing complexities within their organizations.
Fortunately, there’s an answer: LogicSource, a company that’s ideally positioned to help businesses address these challenges through tech-enabled services that empower companies to remove costs and increase profitability via better buying. LogicSource specifically focuses on the sourcing and procurement of indirect goods and services, which typically amount to ~20% of a company’s revenue, thereby addressing the area of greatest spend inefficiency within most organizations.
Through its 100+ ready-to-deploy category experts, $60B+ of indirect spend and pricing data, on-site procurement management, and network of world-class suppliers, LogicSource drives increased supply chain continuity and significant bottom-line improvements for its customers. Its proprietary technology solutions and pre-built tools accelerate time-to-value so that customers begin seeing the path to improvements and tangible ROI from day one.
Many customers see cost savings equating to greater than 3x their investment in LogicSource’s services, not to mention the value that LogicSource provides beyond cost savings. LogicSource is often able to help customers procure hard-to-find goods. For example, when one customer was having difficulty finding paper, a critical part of its finished goods, LogicSource was able to contact a supplier within its network and have multiple rail cars of paper delivered to that customer on the same day. Similarly, at the beginning of the pandemic, LogicSource helped one of its retail clients find enough PPE to keep its 1,500 stores open and operating safely. These capabilities have allowed LogicSource to serve an impressive roster of blue-chip customers including companies like Big Lots, Deluxe, Lululemon, and Rite Aid.
While we’re excited to invest in a business so well positioned to address this set of challenges, we’re equally excited by the opportunity to partner with LogicSource’s founder and CEO, David Pennino. We met David last year and were immediately impressed by his vision for the business and his commitment to the company’s mission. David’s passion for serving customers through driving process improvement and increased profitability was clear to us from the start. This commitment and passion permeate throughout the LogicSource organization and management team. In our conversations with customers, we consistently heard incredible comments about the quality of the LogicSource team and their ability to drive tangible ROI and deliver on the commitments made to each customer. One customer told us they will come in at 180% of their savings goal for the year, just one example of the multiple customers that shared that LogicSource always meets or exceeds its targets.
LogicSource marks FTV’s latest investment in tech-enabled services and procurement technology, sectors where we have deep domain expertise and experience. Our current and prior investments in this sector include Agiloft, A-LIGN, Cloud Factory, EXL (NASDAQ: EXLS), Globant (NYSE: GLOB), Lean Solutions Group, MuSigma (realized), and RapidRatings.
We couldn’t be more honored and excited to partner with LogicSource to scale its market leading services and technology and help a growing number of businesses increase profitability through better procurement. Congratulations and welcome to the FTV family, LogicSource!