Jaggaer has completed the acquisition of Ivoflow, a spend and price intelligence platform for direct materials based in Koblenz, Germany. The financial terms were not disclosed.
Ivoflow, founded in 2020, focuses on helping manufacturers determine whether the price they are paying for a part is in line with the market. Its software consolidates a company's purchasing records, which are often scattered across different systems, and compares them against outside market data such as raw material costs and currency movements. The platform connects a manufacturer's ERP and procurement data with live market inputs including commodity indices, currency movements and cost data, and recalculates at the individual part level what each part should cost as conditions change. Ivoflow customers include Georg Fischer, Sumitomo, Grammer, TI Automotive and ZF Lifetec.
Jaggaer's software helps large organizations manage the procurement process, from selecting suppliers to negotiating contracts to paying invoices. Its customers include manufacturers, universities, hospitals and government agencies.
According to the source, the combination is intended to address the difficulty organizations face in converting data into measurable savings and margin improvement. The source states that direct materials typically represent 50% to 70% of cost of goods sold for complex manufacturers, and that fewer than 2% of manufacturers operate with a purpose-built spend and price intelligence capability for this category.
Ivoflow's software uses AI to check supplier price-increase requests, breaking down what is driving the cost and comparing it against market data. The source cites an example in which a supplier's requested 6% price increase held up to only 1.3% once checked against actual cost drivers.
Jaggaer said it intends to invest in the Ivoflow team, product and roadmap, including expanding AI-driven capabilities such as scenario modelling, savings-probability generation and proactive procurement guidance. Ivoflow co-founders Daniel Demuth and Nicolas Neubauer will continue to lead the Ivoflow team, which joined Jaggaer as part of the transaction.
Andrew Roszko, Chief Executive Officer of Jaggaer, said Ivoflow will enable buyers to manage more of their direct materials within a single platform. Nicolas Neubauer said joining Jaggaer gives Ivoflow the reach and platform to bring its capability to more customers.