The acquisition brings direct materials pricing and spend analysis into Jaggaer’s procurement platform.
Jaggaer has completed the acquisition of German procurement tech company Ivoflow, adding AI-driven spend and price intelligence capabilities to its procurement software portfolio. The transaction, which closed on September 11, 2026, aims to help manufacturers assess material costs and make more data-driven purchasing decisions. The acquisition addresses a persistent challenge for manufacturers: having access to large volumes of procurement data but struggling to turn that information into actionable cost insights.
Jaggaer provides software that covers several stages of the procurement cycle, including supplier selection, sourcing, contract management, and invoicing. Ivoflow, meanwhile, focuses specifically on direct materials, helping companies assess whether the prices they pay for parts and components remain aligned with changing market conditions. Direct materials can account for between 50% and 70% of the cost of goods sold for complex manufacturers. Despite this, the companies said fewer than 2% of manufacturers currently use dedicated spend and price intelligence tools for this area.
AI to assess supplier price increases.
One key element added through the acquisition is Ivoflow’s AI-based analysis of supplier price adjustments. Manufacturers frequently receive requests for higher prices when suppliers cite increases in raw materials, labour, or currency-related costs. Evaluating whether those increases are justified can require extensive manual analysis.
Ivoflow’s technology compares supplier requests with external market information, including commodity prices, currency movements and other cost factors. According to the company, the system can determine which portion of a proposed increase is supported by underlying cost movements. In one example cited by Ivoflow, a supplier request for a 6% price increase was assessed as being supported by only 1.3% after the relevant cost drivers were analysed.
Combining procurement and market data.
The integration is also expected to bring pricing intelligence closer to the purchasing process itself. Rather than relying solely on historical spending reports, procurement teams can use market and cost information to identify areas where prices may have moved away from underlying conditions. Ivoflow’s platform connects enterprise resource planning and procurement data with external market inputs. It then assesses costs at the individual part level as market conditions change. The combined system is intended to help procurement teams identify savings opportunities, compare supplier pricing and establish stronger evidence for commercial negotiations.
Following the transaction, Demuth and Neubauer will continue to lead the Ivoflow team. Jaggaer also plans to invest in the technology and expand capabilities around AI-driven scenario modelling, savings analysis and procurement guidance.
