Logility acquires fellow supply chain IT firm Demand Management
Atlanta-based Logility Inc., a supply chain management software vendor listed on the Nasdaq stock exchange, said Friday it is acquiring privately held Demand Management Inc., a St. Louis-based provider of supply chain planning systems, for $9.5 million in cash.
Demand Management has approximately 800 active customers in more than 70 countries in consumer goods, food and beverage, apparel, life sciences, service parts and retail industries.
Under the agreement, Demand Management will immediately become a wholly owned subsidiary of Logility, and Mike Campbell, president and chief executive officer of Demand Management, will remain with the company as president of the new subsidiary.
“The acquisition is expected to be accretive to Logility’s earnings and cash flow within the next 12 months, and is expected to contribute approximately $10 million in annual revenue, with 50 percent as a recurring component,” Logility said.
The acquisition provides customers in the “small and midsize business” market, which brings Logility's customer base to approximately 1,100. The acquired customer base will complement the company’s traditional target market consisting of larger companies.
Logility is acquiring through this transaction a worldwide “value-added reseller” network of 23 organizations with 67 sales, implementation and support resources. This network will continue to sell Demand Management’s Demand Solutions products, and Logility plans to introduce components of its Logility Voyager Solutions products into areas of this distribution channel.
The Demand Solution products include supply chain forecasting, demand planning, inventory planning and replenishment planning. The Demand Solution Stores product enables store-level forecast modeling and replenishment capabilities for retailers.
The Logility Voyager Solutions products address needs related to demand, inventory and replenishment planning; manufacturing planning, supply and global sourcing optimization; transportation planning and management; warehouse management, and collaborative planning with customers and suppliers.