Coupa Software, a publicly held organization specializing in corporate expenditure management, revealed its acquisition of Llamasoft. Llamasoft, established 18 years ago and based in Michigan, focuses on providing solutions for large enterprises to oversee their supply chains. The transaction was valued at $1.5 billion.

Earlier this year, Llamasoft launched its newest product – an AI-powered platform designed for intelligent supply chain management. This particular functionality proved especially appealing to Coupa, which was seeking a supply chain application to enhance its existing spend management services.

Rob Bernshteyn, Coupa’s CEO and chairman, explained that integrating Llamasoft’s supply chain data with Coupa’s expenditure data will create a highly effective synergy.

“The combination of Llamasoft’s extensive supply chain knowledge and advanced data science and modeling skills, alongside the approximately $2 trillion in cumulative transactional spend data within Coupa, will equip businesses with the insights necessary to adapt quickly and efficiently,” Bernshteyn stated.

This acquisition occurs as businesses increasingly prioritize the digitization of processes throughout their operations, and as supply chains face potential disruptions related to the geographic spread of COVID-19.

“Given the uncertainty in demand and the volatility in supply, organizations require supply chain technology that can assist them in evaluating options and balancing competing priorities to achieve their business objectives. LLamasoft delivers these capabilities through an AI-driven cloud platform that enables companies to make more informed supply chain decisions with greater speed,” the company explained in a release.

Founded in 2002 in Ann Arbor, Michigan, Llamasoft has secured over $56 million in funding, as reported by Crunchbase. The company’s largest funding round was a $50 million Series B investment in 2015, spearheaded by Goldman Sachs.

According to company figures, Llamasoft generated revenues exceeding $100 million and serves a substantial client base of 650 major corporations, including Boeing, DHL, Kimberly-Clark, and GM.

Coupa has a history of strategic acquisitions, having purchased 17 companies to date, according to Crunchbase data. This deal marks the company’s fourth acquisition this year. Initial market reaction to the acquisition has been negative, with the company’s stock price declining by 5.20% at the time of this report.