Supply chain software company E2open nearing SPAC IPO – Reuters (Pending:PCPL.U)

Reuters sources say E2open is nearing a deal to go public through a merger with CC Neuberger Principal Holdings I  (PCPL.U) at a more than $2.5B valuation, including debt.

The deal between the SPAC and Insight Partners-owned E2open could be announced as soon as tomorrow.

CC Neuberger I went public in April, raising $414M to buy a company in the finance, tech, or business services sectors.

E2open provides supply chain management software for a range of industries, including high-tech, consumer packaged goods, and pharmaceuticals.

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Source Article

Exclusive: Supply chain software firm E2open nears deal to go public – sources

(Reuters) – U.S. supply chain management software firm E2open LLC is nearing a deal to go public through a merger with blank-check acquisition company CC Neuberger Principal Holdings I at a valuation of more than $2.5 billion, including debt, people familiar with the matter said on Tuesday.

An agreement could be announced as soon as Wednesday, the sources said, cautioning that talks could still falter. E2open is owned by private equity firm Insight Partners.

The sources requested anonymity because the matter is confidential. CC Neuberger declined to comment. E2open and Insight Partners did not immediately respond to requests for comment.

CC Neuberger I shares rose as much as 10.7% on the news but pared gains to close 3.2% higher at $10.53.

CC Neuberger I is a special purpose acquisition (SPAC), or shell, company that uses proceeds from an initial public offering to acquire a private company, which then becomes public as a result.

Merging with a SPAC has become a popular alternative to going public in a traditional initial public offering, as it involves less regulatory scrutiny and more certainty over the market valuation and funds raised.

So far this year, sports betting platform DraftKings Inc and electric commercial truck maker Nikola Corp have gone public by merging with a SPAC.

Insight Partners took E2open private in 2015 in a roughly $273 million deal. The Austin, Texas-based company sells software that allows companies to manage their supply chain.

E2open’s revenue is around five times what it was in 2015, one of the sources said. It stands to benefit as companies automate their supply chains further in the COVID-19 pandemic.

Led by veteran Wall Street dealmaker Chinh Chu’s investment firm, CC Neuberger I raised $414 million in an IPO in April with the aim of buying a company in the financial,