SSA Global Technologies Inc. expects to add new supply chain execution capabilities to its ERP software offerings for manufacturers and public-sector organizations through its acquisition of EXE Technologies Inc.
The $50 million deal, which was announced last week, follows Chicago-based SSAs purchase last month of Baan Co., which develops enterprise resource planning software for discrete manufacturers.
SSA is on the acquisition path in part because of a shift in the industry where companies have invested heavily in their core ERP systems and are looking to maximize those investments by adding new functionality, according to the companys president, chairman and CEO, Mike Greenough.
“IT directors are being told that they have to get better return with investments,” said Greenough. “Theyve made significant amounts of investment in ERP and are looking to get more for less. Were saying no to switching [systems]—[rather, companies should] invest in areas where business drivers are more important.”
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The three big areas Greenough said he recognizes as opportunities for SSA are logistics, warehousing and advanced planning software that integrates systems with suppliers. EXE fits the latter two categories.
Dallas-based EXE develops software that drives supply chain execution processes, including warehouse management, fulfillment, collaboration, inventory management and supply network execution. For its part, the Baan acquisition gives SSA a deeper global presence and a balanced geographical reach, company officials said. It will also help SSA compete in the upper echelon of ERP deals.
Baan, whose U.S. headquarters is in Herndon, Va., will retain some autonomy over its sales, marketing and development functions, but the companys IT, financial, legal and human resources departments are being integrated into SSA, Greenough said.
Pending approval from shareholders, SSA expects the EXE acquisition to close within 75 to 100 days, when EXE will become a wholly owned subsidiary of SSA.