The acquisition adds direct-materials spend and price intelligence to Jaggaer’s procurement platform, targeting a major margin challenge for manufacturers.
Jaggaer has completed its acquisition of Ivoflow, a Germany-based spend and price intelligence platform focused on direct materials, strengthening its strategy to embed AI-driven decision intelligence into enterprise procurement.
The transaction, completed September 11, brings together Jaggaer’s end-to-end procurement capabilities with Ivoflow’s ability to assess whether prices paid for parts and components reflect changing market conditions.
The strategic opportunity is significant for manufacturers, where direct materials can account for 50% to 70% of cost of goods sold. Yet the release notes that fewer than 2% of manufacturers have purpose-built spend and price intelligence capabilities for this category, leaving many procurement teams dependent on manual analysis and spreadsheets.
“Ivoflow will enable buyers to manage more of their direct materials within a single platform, bringing powerful market and cost intelligence into supplier negotiations.” — Andrew Roszko, Chief Executive Officer, Jaggaer
Ivoflow connects ERP and procurement data with external inputs such as commodity indices, currency movements and cost data to calculate expected part-level costs. Its AI capabilities can also analyse supplier price-increase requests against underlying cost drivers, helping buyers distinguish market-supported increases from those requiring further negotiation.
The integration brings this intelligence closer to the point of purchase. Buyers can potentially assess price competitiveness within the procurement workflow rather than switching between systems, while Jaggaer’s purchasing and supplier data can strengthen the intelligence available to the platform.
Jaggaer plans to invest in Ivoflow’s product roadmap, including scenario modelling, savings-probability analysis and proactive procurement guidance. Ivoflow co-founders Daniel Demuth and Nicolas Neubauer will continue leading the team.
The acquisition signals a broader shift in procurement technology—from reporting what organisations have spent to using market intelligence and AI to determine what they should pay and where procurement teams should act.
