Robert F. Smith’s Vista Equity Partners acquires JAGGAER after raising $20 billion to invest in AI

Robert F. Smith’s Vista Equity Partners has acquired JAGGAER, a global leader in enterprise procurement and supplier collaboration software, from Cinven. The acquisition aligns with the firm’s goal of investing in artificial intelligence after raising more than $20 billion for its eighth flagship fund.

Smith is capitalizing on the AI boom and leveraging generative AI as a vital tool  in Vista’s creation and underwriting processes to stay ahead of the curve in a rapidly evolving market landscape.

“You will also hear more about how we have adopted generative artificial intelligence not just as a tool but as a pivotal component of our value creation and underwriting processes. This has enabled us to identify and capitalize on opportunities, including dramatically expanding TAM [total available market], product innovation, GTM [go-to-market] strategies, with greater precision and speed, ensuring that we stay ahead of the curve in a rapidly evolving market landscape,” Smith said about Vista’s focus on investing in AI.

Jaggaer provides configurable source-to-pay and supplier collaboration software for direct and indirect procurement processes through a single, unified platform. Its AI-enabled solutions help optimize and automate sourcing, spend management, contracting, eProcurement, invoicing and supply chain visibility for over 1,400 customers globally. Both organizations stand to benefit from the growing demand for AI-powered procurement and supply chain management solutions.

The acquisition strengthens Vista’s position in the procurement software market and aligns with its objective of fostering growth in technology-driven businesses. Jaggaer’s suite of AI-enabled solutions for procurement and supplier collaboration adds a strong toolset to Vista’s portfolio, complementing its other investments in the enterprise software space.

Jaggaer is expected to provide the private equity firm with new opportunities for scaling operations, enhancing product offerings, and driving global expansion in the highly competitive enterprise procurement sector.

“JAGGAER provides a mission-critical platform that enables its customers and partners to streamline global supply chain and procurement processes, lower costs and improve visibility. JAGGAER’s products serve a large addressable market benefiting from durable growth tailwinds, including customers’ increasing desire to unify direct and indirect spend management and realize the benefits of AI. JAGGAER is well-positioned to capitalize on these demand trends given its leading capabilities across source-to-pay workflows,” said Michael Fosnaugh, Co-Head of Vista’s Flagship Fund and Senior Managing Director.

Launched in 2000 by Smith, Vista invests in software, data, and technology-enabled businesses. The firm currently manages equity assets under management of over $100 billion and oversees a portfolio of more than 85 enterprise software, data and technology-enabled companies that employ over 98,000 people worldwide. Some of its firm’s portfolio companies include Aderant, Accruent, Brainware, Bulhorn, Centralsquare, Dispatch, Eagleview, Granicus, Gatekeeper, Infoblox, Jamf, and Klarna.

Smith has supervised over 600 completed transactions representing more than $300 billion in aggregate transaction value since Vista’s inception. He directs Vista’s investment strategy and decisions, governance and investor relations.