Agile to Acquire Prodika for Vertical Support

The acquisition will round out Agile's PLM offerings-and make the company a more tempting target for acquisition itself.

PLM software developer Agile Software announced June 28 its entrance into the process manufacturing sector with the acquisition of Prodika.

The terms of the deal were undisclosed.

Prodika develops PLM (product lifecycle management) software for the consumer packaged goods industry, with a particular emphasis on the process-heavy, recipe-dependent food and beverage sector.

A relative upstart—Prodika was founded in 1999—its software helps companies create and manage product information, and collaborate on information related to product design, development and introduction.

/zimages/2/28571.gifRead more here about Agiles 2003 acquisition of Tradec.

Prodikas software is based on the on-demand model of delivery—being offered as a service, as opposed to in an on-premises implementation—and is built on an SOA (service-oriented architecture).

Given its SOA leanings, Prodika breaks its products down into categories by business process, rather than functional type. So, for example, its Collaborative Business Processes suite includes services for new product development; a product design workbench; labeling, marketing and packaging; and supply chain relationship management.

Boston-based AMR Research, which released a research note June 28 discussing Agiles acquisition of Prodika, said it believes the match is a good one because of a couple of factors: It shows that Agile is not standing still while the market consolidates around it; and Prodika brings to the table formulation and other process-specific PLM functions that the Agile doesnt currently have—and that many other vendors dont have either.

/zimages/2/28571.gifClick here to read about the PLM alliance between Microsoft and UGS.

"The competitive environment is getting even more interesting, since Prodika is only one of a handful of vendors providing the unique requirements of formula and specification requirements," Michael Burkett and Alison Smith wrote in AMRs report. "While Agile has strengthened its footprint with Prodika, it also becomes an attractive acquisition since it is the only remaining independent PLM provider neutral to CAD or ERP [enterprise resource planning] systems."

AMR pointed to the usual suspects as potential Agile suitors: SAP, UGS, Dassault Systemes, PTC and IBM.

Agile doesnt seem in any hurry to be acquired. Prodika is its third acquisition in as many years, following the companys recent purchases of Cimmetry Systems and Eigner. Prodika also strengthens Agiles vertical approach to the PLM market.

"Agiles success in PLM is due to our focus on specific industries, including high tech and life sciences," Jay Fulcher, CEO and president of Agile, in San Jose, Calif., said in a statement. "The acquisition of Prodika underscores the importance of industry domain expertise and signifies our intention to lead the CPG market as well."

The acquisition, subject to standard regulatory approvals, is expected to close by the end of June.

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