A Madison-based supply chain software company that was once the fastest-growing company in the U.S. was bought by a $4.3 billion Atlanta firm.
SwanLeap Inc. was acquired by logistics and freight brokerage firm Transportation Insight Holding Co. (TI Holdco) for an undisclosed amount, according to an announcement late last month.
The 2021 revenue run rate for SwanLeap is around $300 million, SwanLeap co-founder and CEO Brad Hollister said.
SwanLeap has around 200 employees worldwide — including around 35 in the Madison area — and they have joined TI Holdco, Hollister said. Hollister has decided to step back from the business but will remain involved as an indepndent contractor for two years, he said.
Founded in 2013, SwanLeap was the No. 1 fastest-growing company in the U.S. in 2018, according to the annual Inc. 5000 list. It had a three-year revenue growth rate of 75,661% to land at $98.9 million in 2017.
For that achievement, Hollister was named an "Inno Blazer," or winner, in Wisconsin Inno's 2018 Fire Awards, which recognized the state's hottest technology and startup leaders.
Hollister owned 50% of SwanLeap and co-founder and chief technology officer Jason Swanson owned 40%, Hollister said. The remaining 10% was owned by early-stage investors that contributed less than a combined $500,000 to the company, Hollister said.
SwanLeap makes transportation management software (TMS) that leverages artificial intelligence to give users real-time insights into their supply chain and make predictions that can help improve revenue, operations and customer service. Its customers have included Jackson-based commercial door manufacturer Rytec Corp. and the Janesville pipe fittings maker Tigre USA.
TI Holdco includes logistics provider Transportation Insight LLC of Hickory, North Carolina, and the Atlanta freight brokerage firm Nolan Transportation Group. The combined organization is backed by San Franciso private equity firm Gryphon Investors and anticipates $4.3 billion in gross revenue for 2021, the company confirmed.
With the acquisition of SwanLeap, another recent acquisition, and its existing network of 10,000 shippers and 50,000 carriers, TI Holdco is aiming to build an end-to-end supply chain solution.
“This acquisition accelerates our existing technology development pipeline by two-to-three years,” TI Holdco chief technology officer Brian Work said in a statement.
TI Holdco will integrate SwanLeap's technology and talent into its existing products and services to create what it calls a multimodal transportation management platform.
"By combining this groundbreaking technology with our nationwide network of thousands of employees with deep domain expertise in all aspects of the supply chain, we are creating the ultimate hybrid-digital solution," TI Holdco CEO Ken Beyer said in a statement.
