Louisville-based SkuVault, a provider of inventory-management software (IMS) and warehouse-management systems solutions (WMS), has been acquired by London, England-based Linnworks, provider of an e-commerce enablement software and order management systems.
Marlin Equity Partners, a global investment firm with over $8.1 billion of capital commitments under management, will be the majority shareholder of the combined company, according to a news release.
The financial terms of the deal were not disclosed. SkuVault, which has a headquarters at 2507 Plantside Drive, has about 100 employees, about half of whom are based in Louisville. All of SkuVault's current operations will remain in Louisville, according to a company statement.
The deal brings together two companies with a shared vision of accelerating growth for omnichannel sellers, the release said.
“We are very excited for the combination of our local and global talent that will drive significant value to our customers, employees and partners,” Callum Campbell, CEO of Linnworks, said in the release. “We deeply appreciate SkuVault’s leading position within the North American market, driven by its highly differentiated product that offers rich features and functionality across the IMS and OMS value chain, as well as its deep WMS and third-party logistics (3PL) capabilities. We look forward to the depth of experience and spirit of innovation that the SkuVault team will bring to the shared company.”
SkuVault raised $8 million in venture capital in 2018. Before then, the company had been bootstrapped since its founding in 2011. It received funding from local investors including Poplar Ventures and Endeavor Catalyst.
SkuVault founders CEO Andy Eastes and CTO Slav Ivanyuk are both Endeavor Entrepreneurs. A few well-known names on the Louisville business scene, Matt Thornton, formerly of Thorntons Inc. and founder and principal of Thornton Capital, Nate Morris, founder and CEO of Rubicon, and Len "Nappi" Napolitano, CEO of Capture Higher Ed, have served on the company's board.
The company was on our Fast 50 list of growing companies in 2020, noting revenue of $6.4 million. It also appeared on the 2021 Inc. 5000 list, with 56% revenue growth. You can read more about Eastes in this 2020 profile story.
“We are thrilled to be partnering with the Linnworks team to drive strategy and innovation in our industry and increase value for our customers,” Eastes said in the release. “Together, we intend to address the most difficult challenges growing omnichannel sellers face and help our customers seamlessly integrate their sales channels and warehouses, fulfill orders more efficiently, and ultimately, grow their respective businesses faster.”
Raymond James & Associates served as SkuVault’s financial adviser. SkuVault’s legal adviser was Wyatt, Tarrant & Combs LLP. DC Advisory acted as financial adviser and Goodwin Procter LLP and Mayer Brown International LLP served as legal advisers to Linnworks and Marlin.
“We believe the businesses are highly complementary, not only from a geographic perspective, but also with each bringing strengths across a number of key product capabilities in order management, inventory management, analytics and forecasting, warehouse management and 3PL support,” said Grant Schachter, a principal at Marlin.
