KKR Invests in AI Software Maker O9 Solutions

By Laura Cooper 

KKR & Co.'s technology growth fund has taken a minority stake in o9 Solutions Inc., valuing the cloud-based supply-chain management software maker at more than $1 billion.

The private-equity firm invested $100 million in o9 Solutions through its KKR Next Generation Technology Fund II, which closed in January on $2.2 billion.

KKR's investment in o9 closed last week and marks the company's first external investment.

This deal is KKR's fourth from its second tech growth fund, according to Jake Heller, the co-head of KKR's Next Generation Technology Growth team in the Americas. Investments from the fund generally range between roughly $50 million and around $200 million.

The planning software developed by o9 Solutions uses artificial intelligence algorithms that companies such as Anheuser-Busch InBev SA, Caterpillar Inc. and Walmart Inc. utilize to help manage their end-to-end supply chain. The company says its cloud-based software aids in evaluating supply chains, estimating demand and analyzing such financial operations as paying vendors and communicating with stakeholders in the supply chain.

O9 Solutions has increased its annual recurring revenue "well north of 100%" in the past year, according to Mr. Heller.

Chakri Gottemukkala, chief executive and co-founder of o9 Solutions, said that he expects the partnership with KKR to help the business expand into countries such as China, Japan and South Korea. He indicated that the new capital will also help o9 Solutions invest in marketing, with the goal of reaching a broader array of customers in terms of both industries and geographies.

Write to Laura Cooper at [e-mail]

(END) Dow Jones Newswires

April 28, 2020 07:14 ET (11:14 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.