Download - the “golden age” for logistics technology m&a and fundraising

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THE “GOLDEN AGE” FOR LOGISTICS TECHNOLOGY M&A AND FUNDRAISINGLOGISTICS TECHNOLOGY INDUSTRY UPDATE | JULY 2021

TABLE OF CONTENTS

CONTACT OUR LOGISTICS TECHNOLOGY INDUSTRY EXPERTS

Key Industry Takeaways Capital Raising OutlookM&A OutlookBuyer Q&A: ValsoftSegment Highlights: Warehouse SoftwareLogistics FinTechSupply Chain VisibilitySelect M&A TransactionsSelect Capital RaisesReport ContributorsEndnotes

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Nathan [email protected]

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KEY INDUSTRY TAKEAWAYS

Capstone Partners’ Transportation & Logistics (T&L) Group is pleased to share its Logistics Technologyreport. Through our ongoing conversations with active industry players and analysis of trends during COVID-19, we have identified several key takeaways below, followed by an in-depth overview of industry dynamicsand interviews with business owners on the following pages.

1. Capital raising has heated up in Q1 and Q2 of 2021 with a total of 96 deals and $2.8 billion raised inLogistics Technology.

2. Correspondingly, the M&A market remains frothy with a record 106 deals completed over the lasttwelve months and an average EV/Revenue multiple of 3.0x in 2021.

3. Overall, the industry continues to mature and shift to later stage capital raises, which should also driveM&A activity for years to come.

4. Strategic acquirers such as Valsoft, which owns logistics software provider Navitrans, are divingdeeper into the space looking for add-ons.

5. Armed with $1.3 trillion in dry powder, private equity buyers are on the hunt for companies with stronggrowth prospects and figure to be active acquirers in the industry.

6. Sectors such as Warehouse Software, FinTech, and Supply Chain Visibility continue to be some of thehottest in Logistics Technology.

Capstone Partners has developed a full suite of corporate finance solutions, including M&A advisory, debtadvisory, financial advisory, and equity capital financing to help privately owned businesses and private equityfirms through each stage of the company’s lifecycle, ranging from growth to an ultimate exit transaction.

To learn more about Capstone’s wide range of advisory services and Logistics Technology industry expertise,please contact Capstone Managing Director Burke Smith.

Logistics Technology IndustryCapital Raise & M&A Boom

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CAPITAL RAISING OUTLOOK

Logistics Technology is one of the new darlings of the venture capital community, and rightfully so. Whilecompanies like Project44, Convoy, and ShipBob promise to revolutionize whole sectors of logistics, manymore like RoadSync, Ship Hero, and Optimal Dynamics offer vast improvements over legacy, paper-basedprocesses. There’s money to be made in logistics tech for both founders and venture capitalists (VCs), andwe don’t expect that to end anytime in the near future.

Year-to-date (YTD) and Last Twelve Months (LTM) as of June 30Source: Capital IQ and Capstone Research;

Key Takeaways

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1. The overall volume of capital raises has skyrocketed— So far in 2021, Q1 and Q2 each recorded 48 deals.At this pace, 2021 will beat the record of 172 deals setin 2020 by 12% and will be a 94% increase over2018 volume.

2. Total capital poured into Logistics Technology hasrisen dramatically — Over the last twelve months(LTM) ending June 30th, the industry has raised over$5.3 billion ($1.3 billion per quarter). This is a drasticincrease over LTM June 30th, 2020 which saw less thanhalf of that amount—$2.5 billion—raised.

3. Both large and small deals have flourished — Whilethere have been 11 “mega deals” over $100 million overthe LTM, the vast majority have been driven by dealsbelow that threshold. In total, 113 deals were under $100

$0

$500

$1,000

$1,500

$2,000

$2,500

0

10

20

30

40

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Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2 Qtr3 Qtr4 Qtr1 Qtr2

2018 2019 2020 2021

Funding in M

illionsTota

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Seed & Earlier Venture Series A Series B Series C Series D+Growth Total Capital Raised

Capital Raised and Investment Activity Continues to Climb

0%

20%

40%

60%

80%

100%

2018 2019 2020 LTM2020

LTM2021

YTD2020

YTD2021

First & Second Round Third and Later Rounds

Logistics Technology Capital Raises Mature into Later Rounds

million in value averaging $18.0 million per raise. 45 deals did not disclose the amount of capital raised.

4. Shift to later stage deals indicates a maturing industry in 2021 — Deals where companies are raisingtheir first and second round of capital only accounted for 53% of deal volume so far in 2021 compared to68% for 2020. However, this isn’t to say volume for earlier capital raises have fallen off, they haven’t, justthe overall total % has shifted to companies raising their third+ round.

Logistics Technology | July 2021

Source: Capital IQ

Perc

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f Tot

al A

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M&A OUTLOOK

With the industry maturing, there is no doubt that M&A will also increase. In fact, it has already started. LTM2021 saw a record 106 transactions announced versus only 89 in 2020. Even despite the overall M&A marketslowdown during the first half of 2020, the LTM represents the most transactions over a rolling four-monthperiod in Capstone Partners’ entire transaction dataset. This is largely due to a number of macro trends:

Macro Trends Driving M&A in 2021

1. (The most obvious) Covid-19 has shone a spotlight on the industry, accelerating adoption and growth.

2. Private equity is raising more capital than ever…

3. …and was not able to deploy that dry powder in the first half of 2020 because investment committeesand lenders put a hold on new deals, focusing on their existing portfolio—creating a deal bubble.

4. The Biden Administration’s plan to raise the capital gains tax has pushed a lot of sellers into the market.

5. Strategics have started to partake in this “land grab” moment in history, looking to fill product gaps andreach new customers.

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Notable 2021 Deals

June 2021Alpine SG (ASG), an acquirer of verticalmarket SaaS (software as a service)companies backed by Alpine Investors, willdeploy significant capital and resources toaccelerate Trucker Tools’ growth.

May 2021Project44’s acquisitions of ClearMetalbolsters its capabilities in artificial intelligence(AI) and predictive analytics to optimizesupply chains.

April 2021MercuryGate’s acquisition strengthens itsTransportation Management Software (TMS)platform in last mile, parcel, and less-than-truckload (LTL) sectors. Providers are racingto offer the most comprehensive solutions.

2.4x 2.6x 2.9x 1.5x 3.0x0

20

40

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80

100

120

0.0x

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2017 2018 2019 2020 2021

Deal V

olume

Ave

rage

EV

/ R

even

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EV/R Deal Volume

M&A Overview


Nathan FeldmanAssociate

“Increased interest in Logistics Technology hasnot only driven volume, but valuations as well.Industry-wide multiples have reached a recordhigh of 3.0x Revenue in 2021. With so much drypowder and debt capital available, privateequity has been increasingly competitive ondeals. Strategics on the other hand have had topush out of their comfort zone, often bypreempting a broad marketing process oracquiescing to seller desires. It’s one of thestrongest sellers’ markets Capstone has everseen.”2021 year-to-date (YTD) as of June 30

Source: Capital IQ and Capstone Research;

BUYER Q&A: VALSOFT

What drew you to Navitrans and how are youlooking to grow that business? LogisticsTechnology is a very interesting space and wasone of the first verticals we looked at when westarted Valsoft, so we were extremely happy thatwe were able to enter with an industry leader likeNavitrans. Navitrans provides TransportationManagement Software (TMS), focusing on largerfleets and moving freight cross-border isimportant. Freight forwarding, customs softwarethat makes it more seamless going from Country Ato B, and warehouse management solutions are allgrowth areas. Yard management is also a spacethat we’d love to partner with or acquire abusiness that does that so we can offer it as asolution to our customers.

Are you looking at those sectors as an add-onfor Navitrans or as a new standalone platform?We’re interested mainly because of Navitrans, butif it has scale we’d love to run it as a standalonebusiness as its own P&L. Typically that’s around $5to $10mm ARR (annual recuring revenue), plus orminus, and if it has good market positioning. For usthat means having a decent number of clients andbeing a player in the market that they’recompeting in. We’ve done deals in the past wherethe top client has 20, 30 percent of the recurringrevenue. I think it’s just a matter of understandingthe relationship. One of our companies has a bigpublic client that made up 30% of the ARR, thoughit was a multi-decade old relationship and we gotcomfortable with that. Actually, as soon as Valsoftacquired the business, the public client doubled

down as they felt more comfortable knowing amulti-national company was behind the softwareand they wouldn’t outgrow us as a vendor.

In your eyes, what makes vertical market SaaSbusinesses more or less successful? Really it’sabout business fundamentals—is the softwaremission-critical? Are there high switching costs?Can you forecast subscription or maintenancerevenues? Those are important. Also, for us,customer churn is very important. This shouldideally be four to eight percent and it shows thatyou’re focusing on the existing client base. Onemistake I’ve seen a lot of entrepreneurs make isunderinvesting in sales & marketing andoverinvesting in R&D. We categorize businessesinto legacy, core, and growth lifecycles and theyeach have different sales strategies. For legacy, Iwould probably be under five percent of revenueand look for acquisition opportunities to growmarket share. For core and growth businesses,that’s probably around five and 15 percent,respectively—though take those numbers as agrain of salt.

Why do entrepreneurs choose to sell theirbusiness to Valsoft? We can relate toentrepreneurs because we’ve built businesses andknow what they’re going through. It’s our capitaland we have a buy and hold model where they’reonly selling their business once. Because of that,we preserve their legacy and take care of theirclients and customers, often giving stakeholdersmore opportunities within Valsoft as a whole.

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Steph Manos, Co-Founder, VP and Head of M&ASteph co-founded Valsoft where he is responsible for Mergers & Acquisitions, Technology, Strategy, and Research. He is also an early investor in Valnet, a company managing some of the world’s biggest entertainment content-rich web properties, including TheRichest.com and ScreenRant.com. Steph lives in Montreal with his wife and three kids.

Valsoft acquires and develops vertical market software companies, enabling eachbusiness to deliver the best mission-critical solutions for customers in theirrespective industry or niche. In February 2020, Valsoft acquired Navitrans, aprovider of integrated logistics, transportation, warehousing, and freight forwardingsoftware. A key tenet of Valsoft's philosophy is to invest in well-establishedbusinesses and foster an entrepreneurial environment that molds companies intoleaders in their respective industries. Valsoft looks to buy, hold, and create valuethrough long-term partnerships with existing management.


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Year-to-date (YTD) as of June 30Source: Capital IQ and Capstone Research;

The increase in ecommerce volume andomnichannel fulfillment over the past year hasaccelerated the adoption of technology bythird-party logistics (3PL) warehouses to meetcustomer demand from ecommerce merchantsand improve satisfaction of end customers. Webelieve 3PL Central is well-positioned to delivereven greater value to customers as part of thistechnology cycle.

- Jason Payne, Co-FounderMainsail Partners4

VC HIGHLIGHT: 3PL Central Receives $45 Million from Mainsail Partners (April 2021)

• The $45 million in funding is slated to help 3PL Central improve their product and support future acquisitions

• 3PL Central’s cloud-based WMS platform helps warehouses modernize their operation allowing for greater visibility to customers, automation of routine tasks, and easier management of inventory

Recent tailwinds in the e-commerce space havecreated heightened demand for warehousemanagement systems (WMS). According to GrandView Research, the market size for WMS at the endof 2020 was valued at $2.64 billion1 and isprojected to grow at a compound annual growthrate of 15.3% to reach $8.1 billion by 2028,reflecting a 307% total increase over the eight-year period (2020-2028).2

Investors have taken notice of this phenomenon,evidenced by the significant increase infinancing for warehousing software companies,WMS, and otherwise. Funding for companies inthe space for Q4 in 2020 and Q1 in 2021 totaled$395.48 million and $199.86 million, respectively.ShipBob, alone, raised $200 million in Series Efunding at the end June.3 These figures greatlyeclipse the average of $60-70 million recordedper quarter throughout the two previous years.

Most capital raises over the last 18 months havebeen either Series C or Growth Capital. Thisx

$0

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2018 2019 2020 2020YTD

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Pre-A Series E Series D Series CSeries B Series A Growth

Venture Capital Activity in Warehouse Software

indicates that the warehouse software sector is maturing as investors believe that they will receive quickreturns on their capital. Some companies, including Shipmonk and STORD, have even received multiple roundsof funding within months of each other. Shipmonk received $65 million in growth capital (January 2021) lessthan two months after having received a round of $290 million (December 2020).

The COVID-19 pandemic has made it significantly more difficult for early-stage companies in the warehousesoftware sector to kickstart operations and attract capital, as investors focus on later-stage companies thatare less risky. However, as the pandemic is winding down, we have begun to witness the return of Series Afunding to the space. Four of the last ten private placement transactions in warehouse software have beenSeries A compared to only one throughout the entirety of 2020. Furthermore, M&A transactions in the spacehave been unabating throughout the pandemic. Ten deals have been closed since the beginning of 2020, andwe expect that number to increase, as we move towards the second half of 2021.

SEGMENT HIGHLIGHT: WAREHOUSE SOFTWARE


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SEGMENT HIGHLIGHT: LOGISTICS FINTECH

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0 5 10

2018

2019

2020

2021

Deal Count

Qtr1 Qtr2 Qtr3 Qtr4

Year-to-date (YTD) and Last Twelve Months (LTM) as of June 30Source: Capital IQ and Capstone Research;

Logistics-Related Fintech Deal Volume

3.1x

7.1x

14.2x

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12x

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BPOPayment ProcessingPayment Technology

With such fierce competition among trucking companies,broker, forwarders, etc., FinTech has become an integralsolution to lower costs and improve relationships withcustomers.7 RoadSync, a portfolio company ofCompanyon Ventures, has become a notable player in thespace, having raised $30mm in June 2021 from TigerGlobal Management. CEO Robin Gregg has calledRoadSync the “Square” of trucking, an ambitious but notunreachable comparison.8

Overall activity in Q2 2021 was greater than all of 2018’svolume combined and is on track for a very active year.Private capital is pouring into the space – in January, RelayPayments announced a $43 million capital raise,9 which isanother big win for Logistics FinTech. Significant backersinclude Tiger Global, Base10 Partners, Hyde Park VenturePartners, Ribbit Capital, and Spark Capital.

Fintech Valuations


With the global FinTech industry expected to reach $324 billion in value by 20265, companies in the spacetouch almost every sector – including transportation and logistics. “The logistics industry is going through atransformation, where a lot of these paper and manual processes are rapidly going to digital,” Relay PaymentsCEO Ryan Droege stated in a press release.6 The importance of the broader industry is clearly represented inpublic company valuations that have grown in 2021, especially payment technology companies such asPaypal (14.9x revenue), ACI Worldwide (4.2x), EVO (6.0x) and others.

Investor Spotlight

We at Companyon Ventures invest in post-seedearly expansion-stage B2B SaaS startups. While weare industry agnostic, we do favor certain verticalswhere we see significant inefficiencies in operations.

One market that is ripe for technology-basedefficiencies and innovation is Supply Chain andLogistics. In our diligence of this investment, itamazed us that the world still has pockets of industrystill lacking in efficient automation. The UStransportation industry is a $700B industry withhundreds of thousands of businesses includingtrucking, warehousing, brokerage, and servicescompanies. These businesses routinely invoice andaccept paper payments - like cash and check. Theindustry even has its own specialized paper checkproduct, fleet checks. Sixty percent of small truckingcompanies use paper invoices and 60% of logisticsbusinesses report getting paid in paper checks.

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Companyon is an investor in RoadSync, an online payment provider for logistics

SUPPLY CHAIN VISIBILITY

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Facing a surge in e-commerce and global transportation disruptions from the pandemic, shippers are turningto real-time transportation visibility platforms (RTTVPs) to achieve greater oversight of supply chains. TheRTTVP market has been growing at a rapid pace globally, doubling in size in North America last year to nearly$300 million and is expected to reach $1 billion by 2024, according to Gartner.10 This land grab has drivenplatforms to strengthen their capabilities via internal investment, acquisitions, or partnerships. M&A activityremains active in the RTTVP market with seven acquisitions in 2021 equaling the amount set in the year prior.xKey Areas of Growth

• Multi-modular compatibility: Companies have expanded theirofferings to apply to multiple modes of transportation. For example,FourKite’s acquisition of Haven and project44’s buyout of OceanInsights enabled both firms to reach more ocean carriers andimprove the traceability of ocean shipments.

• Wider geographic reach: Providers are capitalizing on the demandfrom international and regional logistics companies, expandinggeographically. Sixfold and Transporeon merged to form Europe’slargest RTTV platform and seek to expand into North America.

• Integrating Artificial Intelligence: Predictive analytics and AI arethe future of supply chain visibility. project44 is keenly aware,having acquired ClearMetal to bolster its capabilities. C.H. Robinson,also partnered with Microsoft to leverage Azure’s internet of things(IoT) solutions to the carrier’s vast logistics network.

Venture capital has supported companies’ growth with project44’s $200 million Series E funding, valued at$1.2 billion, being the largest investment in 2021 to-date. Other notable raises are from FarEye and FourKiteswith $100 million each to advance their machine learning and data science capabilities. RTTVP providerShippeo received $32 million to further scale its AI platform’s data-aggregating abilities. Capstone Partnersexpects more firms to enter the market to serve different niches, further fragmenting the market. This trendwill fuel strong M&A activity as larger firms acquire smaller players to grow their presence and to provide forthe needs of a global, diverse customer base.

Source: Capital IQ, Pitchbook, Crunchbase, Capstone Research

$32mm

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Venture Capital Financing 2021

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Global Market: Real-Time Transportation Visibility

Platforms

Source: Gartner

+$130 million

+$700 million

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SELECT M&A TRANSACTIONS

Enterprise EV / LTMDate Target Acquirer Target Business Description Value (mm) Revenue EBITDA

06/22/21 Trucker Tools Alpine SG Develops load tracking and digital freight matching

software solutions for truck drivers. - - -

06/15/21 XELOG proLogistik Provides warehouse management software for intra logistics processes. - - -

06/10/21 TNX Logistics Transporeon Builds cloud-based software for logistics companies to optimize daily dispatching. - - -

06/08/21 Modum Roambee Offers IoT and blockchain-based supply chain logistics solutions. - - -

06/02/21 Skipjack Supply Chain / Proactive Redwood Logistics Develops a multi-carrier SaaS parcel platform that

provides rating and labeling capabilities to WMS. - - -

05/27/21 BluJay Solutions E2open Offers supply chain software and services for transportation, yard, and fleet management. $1,700.2 - -

05/27/21 ClearMetal project44 Develops artificial intelligence software for supply chain visibility operations. - - -

05/19/21 GPS Insight Accel-KKR Provides GPS fleet tracking software and E-logistics solutions for organizations with mobile assets. - - -

05/11/21 Padam Mobility Siemens Mobility Designs and develops demand responsive transport software solutions. - - -

05/10/21 Portrix Logistics Software Descartes Develops global price management software for

forwarder, carrier, and shipper industries. $25.2 - -

05/06/21 WellRyde ModivCare (Nasdaq:MODV)

Operates a transportation management platform. - - -

05/05/21 Raven Logistics BluJay Solutions

Develops SaaS railroad transportation management systems. - - -

04/23/21 Blue Yonder Group Connected Solutions

Offers end-to-end integrated supply chain and retail management software solutions. $8,597.6 8.5x 35.0x

04/21/21 Returnly Technologies

Affirm Holdings (Nasdaq:AFRM)

Provides online return, post-purchase payments, and reverse logistics solutions. $257.6 - -

04/09/21 Peak-Ryzek / Optical Phusion Sole Source Capital Develops supply chain automation and inventory

management software. - - -

04/07/21 Haven FourKites Operates a cloud-based logistics platform for trading companies. - - -

04/06/21 Cheetah Software

MercuryGate International

Provides real-time logistics and dispatches solutions for delivery, less-than-truckload, and fleet operations. - - -

03/24/21 Trackunit HgCapital Develops SaaS fleet management systems. - - -

03/15/21 Base Logistics Staci Offers transportation, warehouse, and data management solutions for the logistics industry. - - -

03/11/21 ShipXpress Kaleris Provides cloud-based software solutions for transportation and industrial businesses. - - -

03/01/21 QuestaWeb Descartes Develops web-based global trade and logistics management software solutions. $36.0 - -

02/01/21 Eleos Technology Knight-Swift Transportation

Operates a mobile driver workflow platform for trucking fleets and truck operators. $52.0 - -

01/07/21 Unifaun Consignor Group Offers SaaS transport management software solutions. - - -

Source: Capital IQ, PitchBook, FactSet, and Capstone Research


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SELECT CAPITAL RAISES

Round Post Money CapitalDate Target Acquirer Target Business Description Type Valuation (mm) Raised

06/29/21 Shipbob Menlo, Bain, Hyde Park, Softbank

Develops online shipping and fulfillment software for small e-commerce businesses Series E $1,000.0 $200.0

06/24/21 RoadSync Tiger Global, Hyde Park, Base10

Designs and develops an online payment platform for the warehousing, driving, and logistics industries. Series B - $30.0

06/15/21 PayCargo Insight Venture Operates a logistics payment platform for efficient transfers of cargo. Series B - $125.0

06/09/21 Cleo Communications H.I.G. Capital Offers a cloud integration platform for logistics and

transportation, E-commerce, and other industries. Growth - -

06/09/21 Ship Hero Riverwood Capital Operates a cloud-based e-commerce fulfillment, logistics, and WMS SaaS platform Growth - $50.4

06/03/21 Roambee PSA unboXed Develops a cloud-based platform for supply chain monitoring services. Growth - -

06/01/21 project44 Goldman Sachs

Offers a cloud-based visibility platform for shippers and third-party logistics companies. Series E $1,200.0 $202.0

05/19/21 FreightWaves Hearst, Triangle Peak

Provides SaaS-based freight forecasting and analytics solutions. Venture - $16.1

05/11/21 Route42 DKV Mobility Offers a transportation monitoring and analytics platform for trucking companies. Growth - -

05/07/21 PlusAI BlackRock, D.E. Shaw Develops self-driving trucks to enable the commercialization of autonomous transport. Growth - $150.0

05/07/21 FourKites Cardinal Health Provides a cloud-based visibility platform for freight brokers, carriers, and 3PL companies. Growth - -

04/21/21 CognitOps FirstMark, Chicago Ventures

Offers cloud-native software to automate warehouse management. Series A - $11.0

04/16/21 Chain.io Mercury, Grand

Develops a cloud-based supply chain integration platform to boost data visibility across systems. Venture - $5.0

04/07/21 Pole Star Space Applications

Wavecrest Growth, Abry

Provides SaaS software solutions and APIs for the maritime, finance, and government sectors. Growth - -

04/05/21 3PL Central Mainsail Management

Develops on-demand warehouse management software for third party logistics companies. Growth - $45.0

03/30/21 HighRadius Tiger, Susquehanna, D1

Provides financial supply chain management solutions to automate receivables functions. Series C $3,100.0 $300.0

03/19/21 STORD Founds, Susa, Salesforce, Bond

Offers a cloud-based software platform for warehousing and distribution services. Series C - $65.0

03/18/21 Cubyn BNP Paribas, Eurazeo, DN, 360

Designs and develops a business-to-business logistics software platform. Series C - $41.8

02/18/21 Deposco NewSpring Capital, Aspen Capital

Offers SaaS warehouse and inventory management solutions. Series A - $35.4

01/27/21 Shipmonk Periphas Capital Develops order fulfillment solutions for ecommerce industries. Growth - $65.0

01/05/21 Oxbotica Halma, IP, BP, Tencent, BGF, Doxa

Offers an AI autonomous vehicle and warehouse navigation platform. Series B - $47.0

10/28/20 Outrider New Enterprise, Henry Crown, Koch

Provides SaaS solutions for fully and semi-autonomous freight and transportation fleets. Series B - $65.0

10/02/20 Uber Freight Greenbriar Equity Develops an application that matches carriers with shippers Series A $3,300.0 $500.0

Source: Capital IQ, PitchBook, FactSet, and Capstone Research


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LOGISTICS TECHNOLOGY REPORT CONTRIBUTORS

Nathan [email protected] | 845-416-5906

Nathan joined Capstone Partners in 2015 and while he has held multiple different rolesat the firm, he currently works as an investment banking associate on the firm’sTransportation & Logistics team. His responsibilities primarily include helping middlemarket business owners throughout the industry execute exit, recapitalization, andcapital raise transactions.. Nathan earned his BA from Brandeis University with a degreein English, Business and Physics.

Jay MercierVice [email protected] | 404-934-6362

Jay serves as a Vice President in Capstone’s Transportation and Logistics Group. Hebrings over 10+ years of capital markets experience spanning Investment Banking, CreditTrading and Equity Derivatives Trading. Prior to joining Capstone, Jay worked as aDirector at Cowen where he was a member of the Outsourced Trading Team. He wasresponsible for the account coverage of institutional buy-side accounts and advisedclients on risk mitigation strategies with the use of exchange-traded derivatives.

Burke SmithManaging Director [email protected] | 310-872-0038

Burke brings to Capstone Partners over 20 years of experience as an advisor to orleader of middle market companies, including several asset-based trucking andwarehousing operations. Over his career as an M&A advisor, Burke has executed morethan 45 transactions with a combined value in excess of $40 billion.

Burke began his career working on Wall Street. He initially trained at Wasserstein Perella& Co., where he worked directly for famed M&A banker Bruce Wasserstein. Burke thenjoined Donaldson, Lufkin & Jenrette (DLJ) as an early member of the firm’s ExclusiveSales Group, which became one of the most successful middle market sell-sideadvisory practices on Wall Street. Following the acquisition of DLJ by Credit Suisse,Burke joined UBS as an Executive Director in the mergers and acquisitions group.


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Special Contribution by Analyst Spencer Baxter and Summer Interns John Lindsey Ethan Reiser

ENDNOTES

1. Grand View Research, “Warehouse Management Systems Market Size, Share & Trends Analysis Report By Component (Services, Software), By Deployment (Cloud, On‐premise), By Function, By Application, And Segment Forecasts, 2021 ‐ 2028,” https://www.grandviewresearch.com/industry‐analysis/warehouse‐management‐system‐wms‐market#:~:text=The%20global%20WMS%20market%20size,USD%203.01%20billion%20in%202021.&text=The%20global%20WMS%20market%20is,USD%208.18%20billion%20by%202028, accessed June 23, 2021.

2. Grand View Research, “Warehouse Management Systems Market Worth $8.1 Billion By 2028,” https://www.grandviewresearch.com/press‐release/global‐warehouse‐management‐system‐wms‐market, accessed June 23, 2021.

3. PR Newswire, “ShipBob Raises $200 Million in Series E Funding, Led by Bain Capital Ventures, Valuing the Ecommerce Logistics Platform Well Over $1 Billion,” https://www.prnewswire.com/news‐releases/shipbob‐raises‐200‐million‐in‐series‐e‐funding‐led‐by‐bain‐capital‐ventures‐valuing‐the‐ecommerce‐logistics‐platform‐well‐over‐1‐billion‐301321574.html, accessed June 29, 2021.

4. PR Newswire, “Mainsail Partners Leads Syndicate in Fresh $45 Million Capital Raise for 3PL Central,” https://www.prnewswire.com/news‐releases/mainsail‐partners‐leads‐syndicate‐in‐fresh‐45‐million‐capital‐raise‐for‐3pl‐central‐301261953.html, accessed June 23, 2021.

5. Market Data Forecast, “Global Fintech Market Research Report ‐ Segmentation By Technology (API; AI; Blockchain; Distributed Computing), By Service (Payment; Fund Transfer; Personal Finance; Loans; Insurance; Wealth Management), By Application (Banking; Insurance; Securities; & Others), By Deployment Mode (Cloud & On‐premises), By Region, Competition, Forecast & Opportunities (2021 – 2026),” https://www.marketdataforecast.com/market‐reports/fintech‐market, accessed June 30, 2021.

6. The Business Journals, “How the e‐commerce boom skyrocketed Startups to Watch honoree Relay Payments,” https://www.bizjournals.com/atlanta/inno/stories/profiles/2021/03/25/relay‐payments‐e‐commerce‐growth.html, accessed June 30, 2021.

7. Fintech Ranking, “Can FinTech Revolutionize the Logistics Industry and Introduce Much‐Needed Change?” https://fintechranking.com/2021/02/09/can‐fintech‐revolutionize‐the‐logistics‐industry‐and‐introduce‐much‐needed‐change/, accessed June 30, 2021.

8. The Business Journals, “Transportation payments platform RoadSync raises $5.7M,” https://www.bizjournals.com/atlanta/inno/stories/fundings/2020/04/01/transportation‐payments‐platform‐roadsync‐raises.html, accessed June 30, 2021.

9. PR Newswire, “Relay Payments Raises $43 Million in New Funding to Transform Transportation Payments,” https://www.prnewswire.com/news‐releases/relay‐payments‐raises‐43‐million‐in‐new‐funding‐to‐transform‐transportation‐payments‐301203402.html, accessed June 30, 2021.

10. Gartner, “Magic Quadrant for Real‐Time Transportation Visibility Platforms,” https://www.gartner.com/doc/reprints?id=1‐25SQ42A3&ct=210414&st=sb, accessed on June 24, 2021.

Common Goa ls . Uncommon Resu l ts .

DisclosureThis report is a periodic compilation of certain economic and corporate information, as well as completed and announced merger andacquisition activity. Information contained in this report should not be construed as a recommendation to sell or buy any security. Anyreference to or omission of any reference to any company in this report should not be construed as a recommendation to buy, sell ortake any other action with respect to any security of any such company. We are not soliciting any action with respect to any securityor company based on this report. The report is published solely for the general information of clients and friends of CapstonePartners. It does not take into account the particular investment objectives, financial situation or needs of individual recipients.Certain transactions, including those involving early-stage companies, give rise to substantial risk and are not suitable for all investors.This report is based upon information that we consider reliable, but we do not represent that it is accurate or complete, and it should notbe relied upon as such. Prediction of future events is inherently subject to both known and unknown risks and other factors that maycause actual results to vary materially. We are under no obligation to update the information contained in this report. Opinionsexpressed are our present opinions only and are subject to change without notice. Additional information is available upon request.The companies mentioned in this report may be clients of Capstone Partners. The decisions to include any company in this report isunrelated in all respects to any service that Capstone Partners may provide to such company. This report may not be copied orreproduced in any form or redistributed without the prior written consent of Capstone Partners. The information contained herein shouldnot be construed as legal advice.

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Market PresenceWith a long-established U.S. footprint, together with an international partnerplatform, we provide clients with broad expertise and access to key marketrelationships on a global basis. Our presence is backed by ~200 professionals in theU.S. with 450+ professionals across 43 countries.

$65.1Maverage

transaction value

51deals involving foreign

private equity firms

65%completed with a European partner

218M&A transactions

completed in 2020

30%of our deals are cross-

border

$12.5Baggregate

transaction value

6thglobally ranked for

deals under $500m

International

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Boston · Chicago · Dallas ·Denver Detroit · Los Angeles ·New York Orange County ·Philadelphia Richmond · San Diego · Tampa

450+ professionals60+ offices in 43 countries

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