Information on the Target

On October 29th, 2024, Sagard NewGen acquired FuturMaster, a leading Software-as-a-Service (SaaS) provider specializing in Supply Chain Planning and Revenue Growth Management solutions. The acquisition involved the founder of FuturMaster and Cathay Capital, with Sagard NewGen emerging as the majority shareholder alongside the management team and Cathay Capital, which reinvested in the transaction.

FuturMaster is renowned for its Bloom platform, which delivers a comprehensive suite of SaaS solutions that optimize end-to-end supply chain planning and enhance revenue management for mid-sized and large enterprises globally. By transforming complex business operations into actionable strategies, FuturMaster provides its clients with a competitive edge amidst market volatility. Enabled by leading technologies such as artificial intelligence, digital twin modeling, and operational research, the platform facilitates improved demand planning and operational adaptability through optimized production, distribution, and supply strategies.

Industry Overview in France

The SaaS sector in France has witnessed significant growth in recent years, propelled by an increasing demand for efficient digital solutions across various industries. This sector is characterized by its innovative nature, as software providers continually advance technologies to meet the evolving needs of businesses. Companies are increasingly adopting SaaS models to enhance operational efficiency, reduce costs, and improve scalability.

France's strong technological ecosystem fosters a conducive environment for SaaS providers. With a diverse range of startups and established companies operating in this space, the market benefits from a rich pool of talent and resources. The French government has also promoted initiatives to support digital transformation, further accelerating the growth of the SaaS industry.

Within this dynamic landscape, supply chain management has emerged as a critical focus area. Businesses are acknowledging the importance of streamlined and resilient supply chain operations, especially in light of recent global disruptions. Thus, the demand for advanced supply chain planning solutions, such as those offered by FuturMaster, is on the rise, positioning the company well for future growth.

FuturMaster stands out in this competitive environment, having established a strong presence in over 90 countries and serving notable clients across various sectors, including Heineken and L’Oréal. The company’s proven track record facilitates its momentum in expanding its solutions internationally.

The Rationale Behind the Deal

The acquisition of FuturMaster by Sagard NewGen aligns with the strategic objective of leveraging innovative technology to enhance operational efficiencies within the supply chain. Sagard NewGen, along with Cathay Capital, aims to capitalize on FuturMaster’s strong growth trajectory—currently generating around €30 million in annual revenues with a growth rate of approximately 30% per year.

With expectations to amplify FuturMaster’s organic development through ongoing product innovation and potential acquisitions, the partnership is set to strengthen the company’s international expansion efforts across Europe and beyond.

Information About the Investor

Sagard NewGen is a key player in financing growth strategies within the Technology and Healthcare sectors, focusing on European companies with sales up to €200 million that embrace innovation and sustainability. As part of Sagard’s extensive international platform, which manages over $25 billion in assets, Sagard NewGen provides tailored support and a high-value ecosystem for management teams.

With offices strategically located across Europe, North America, and Abu Dhabi, Sagard NewGen employs flexible capital and an entrepreneurial approach to empower companies, making it well-positioned to support FuturMaster’s growth trajectory.

Cathay Capital

Cathay Capital is a prominent private equity and venture capital firm with a focus on facilitating growth for companies across Europe, North America, and Asia. With over 6 billion euros in assets under management, Cathay Capital’s reputation is built upon its extensive investment experience, having completed more than 280 investments across diverse sectors.

By connecting investors, entrepreneurs, and management teams, Cathay Capital plays a pivotal role in driving international expansion and sustainable transformation, positioning itself as an invaluable partner to FuturMaster as it embarks on its next phase of growth.

View of Dealert

From an investment standpoint, Sagard NewGen’s acquisition of FuturMaster appears to be a strategic move with significant upside potential. The demand for innovative supply chain solutions is robust, and FuturMaster’s established presence across international markets provides a solid foundation for future revenue growth.

The company's commitment to leveraging advanced technologies further enhances its value proposition, particularly in unpredictable business environments where supply chain optimization is paramount. Given the increasing recognition of the importance of supply chain resilience, FuturMaster is poised to capture market share and solidify its leadership position.

However, the competitive nature of the SaaS market necessitates ongoing product innovation and adaptation to changing market demands. Sagard NewGen's involvement is likely to bolster FuturMaster’s capabilities, ensuring that it remains at the forefront of technological advancements in supply chain management.

Overall, this acquisition showcases a strategic fit that leverages both companies’ strengths and positions FuturMaster for sustained success in an ever-evolving industry landscape.

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