Business applications software goliath SAP AG announced Monday that its North American subsidiary, SAP America Inc., intends to acquire retail software provider Retek for about $496 million in cash.
Retek Inc., in Minneapolis, Minn., develops software that enables automation from the point of purchase through the retail supply chain, and supports such retailer activity as merchandise operations management, supply chain management, and merchandise planning and optimization.
The software will also enable SAP, in Walldorf, Germany, to delve deeper into a vertical market it has pinpointed as an area for future growth.
SAP CEO Henning Kagermann said during the companys fourth-quarter earnings call in January that 2005 would be a year of growth for the company.
Kagermann said SAP would hire 3,000 new employees to facilitate growth in particular U.S. markets, and look to acquisitions to fuel growth in certain vertical markets.
“The global retail industry is large and represents a significant growth opportunity for SAP,” said Kagermann in a statement.
“The acquisition of Retek is in keeping with SAPs growth strategy to invest in companies and solutions that expand the SAP portfolio, deliver best-in-class industry solutions, provide new capabilities and help customers meet ever-changing market conditions,” Kagermann said.
The Retek acquisition, subject to regulatory approvals, is expected to close in April. The company will add 200 customers and 525 employees to SAPs bottom line.