Accel-KKR, a technology-focused private equity firm, has invested in the IntegriChain cloud software company, which manages marketing and sales efforts for life sciences companies across various distribution channels.
The amount of the investment was not disclosed, but Accel-KKR will acquire all of the equity not held by members of the management team of Philadelphia-based IntegriChain. The company’s cloud software is used by nine of the top 10 pharmaceutical manufacturers to manage their supply chains, inventories and orders across various channels.
Accel-KKR, with offices in Menlo Park, California, Atlanta and London, has $4 billion in capital commitments to invest in middle-market software and information technology businesses. In September 2015, the firm closed its fifth buyout fund at $1.3 billion in investor commitments. Also in 2015, Olidex—a company backed by Accel-KKR—bought Automatic Data Processing Inc.'s (Nasdaq: ADP) procure-to-pay business, which included a cloud-based service for oil and gas industry suppliers.
As more and more cloud computing solutions are developed and sold, private equity firms are taking more of an interest in middle-market cloud-related businesses. Cloud computing drove deal-making activity in 2015 and is expected to do so again in 2016. In February, CVC Capital Partners of London reported that it had raised $1 billion in investor commitments for a fund to invest in tech opportunities, including cloud computing. Needham & Company was IntegriChain’s financial adviser on the Accel-KKR transaction.