Fresh from its acquistion of Baan last month, SSA Global Technologies is continuing its expansion through acquisition with plans to acquire supply chain execution software developer EXE Technologies.
Under the terms of the agreement a subsidiary of SSA will merge into Dallas-based EXE. The cost of the transaction amounts to $7.10 a share, in cash, for all of EXE's outstanding shares. Pending approval from shareholders, SSA expects the acquisition to close within about 75 to 100 days, when EXE will become a wholly owned subsidiary of SSA.
The acquisition is intended to flesh out SSA’s offerings to provide an end-to-end portfolio. Areas that need expanding are logistics, warehousing and advanced planning software that integrates systems with suppliers. EXE develops software that drives supply chain execution processes, including warehouse management, fulfillment, collaboration, inventory management and supply network execution.
"IT directors are being told that they have to get better return with investments," said CEO Mike Greenough. "They've made significant amounts of investment in ERP and are looking to get more for less. We're saying 'no' to switching [systems] – invest, [rather, companies should invest] in areas where business drivers are more important.'