Jaggaer buys Ivoflow to boost manufacturer pricing

Jaggaer has completed its acquisition of Ivoflow, adding direct materials spend and price intelligence software to its procurement offering.

The deal combines Jaggaer's broader procurement software with Ivoflow's narrower focus on direct materials pricing for manufacturers. Ivoflow, based in Koblenz, Germany, was founded in 2020 and will continue to be led by Co-Founders Daniel Demuth and Nicolas Neubauer, who have joined Jaggaer with their team.

Jaggaer sells software that helps large organisations manage procurement, from supplier selection and contract negotiation to invoicing and payment. Its customers include manufacturers, universities, hospitals and government agencies.

Ivoflow's software is designed to answer a specific question for manufacturers: whether the price paid for a part reflects market conditions. It combines purchasing records with external data such as commodity indices, currency movements and cost data, then recalculates what an individual part should cost as conditions change.

Direct materials focus

The target market is significant. Direct materials, including raw materials, parts and components, account for about 50% to 70% of cost of goods sold for complex manufacturers, according to Jaggaer. Fewer than 2% of manufacturers use a dedicated spend and price intelligence system for that area, leaving many procurement teams reliant on spreadsheets and manual price comparisons.

That has commercial implications when suppliers seek price rises tied to inputs such as steel, plastics or foreign exchange movements. Jaggaer said Ivoflow's software uses artificial intelligence to read supplier price increase requests, identify the claimed cost drivers and compare them with current market data to estimate how much of an increase is justified.

One example cited by Jaggaer involved a supplier request for a 6% increase, with the software concluding that only 1.3% was supported by the underlying costs. The same approach can also be used to scan existing spend and identify categories where prices have drifted away from the market before a supplier seeks a change.

Manufacturing customers

Ivoflow says it serves 17 enterprise manufacturing customers and has tracked €77.6 million in savings under management. Named customers include Georg Fischer, Sumitomo, Grammer, TI Automotive and ZF Lifetec.

The rationale for the deal is to embed Ivoflow's pricing analysis within the procurement workflow buyers already use. Jaggaer said this would allow buyers to check whether a quoted price is fair without switching to a separate tool.

The companies also pointed to the data advantage of combining Ivoflow's analysis with Jaggaer's purchasing and supplier information. In practice, that means a larger pool of transaction data against which prices can be compared.

Jaggaer plans to invest in the Ivoflow team and product, including work on scenario modelling, savings probability generation and artificial intelligence-based procurement guidance.

Andrew Roszko, Chief Executive Officer of Jaggaer, outlined the immediate fit between the two businesses.

“Ivoflow will enable buyers to manage more of their direct materials within a single platform, bringing powerful market and cost intelligence into supplier negotiations. This means more transparent, fact-based conversations with suppliers, stronger partnerships, and better commercial outcomes. We see real opportunity to invest in the team, expand the platform, and accelerate what we can deliver together,” said Andrew Roszko, Chief Executive Officer, Jaggaer.

Founders stay on

Ivoflow's founders said the acquisition gives the business a broader route to market while preserving its focus on manufacturer pricing analysis.

“We built Ivoflow to help manufacturing companies become leaders in cost excellence and drive profitability. Joining Jaggaer gives us the reach and platform to bring that capability to many more customers and accelerate what we set out to build. We are very much looking forward to what lies ahead and to becoming part of the Jaggaer team,” said Nicolas Neubauer, Co-Founder, Ivoflow.

Daniel Demuth described the combination as a way to broaden the product and expand its use of artificial intelligence in manufacturing procurement.

“Jaggaer gives us the opportunity to help shape the future of how manufacturing enterprises manage their spend and identify savings. By combining Ivoflow's capabilities with Jaggaer's team, reach and platform, we can accelerate our roadmap, expand our AI capabilities, and build toward becoming the leading provider of spend and price intelligence for manufacturers globally,” said Daniel Demuth, Co-Founder, Ivoflow.