Enterprise software giant SAP America Inc. has signed a definitive merger agreement to acquire Retek, a provider of supply chain solutions and services to the retail industry, for $496 million.
Retek provides an integrated retail application suite and best-of-breed solutions to more than 200 customers in more than 20 countries. Retek had 2004 annual revenue of $174.2 million and has approximately 525 employees.
In announcing the deal, SAP observes that the retail industry is entering a new phase of package software adoption, as retailers are increasingly considering IT as a strategic instrument to drive competitive differentiation and business growth. The combination of Retek’s application portfolio, industry expertise and market presence will allow SAP to respond to this demand from the retail industry.
“The global retail industry is large and represents a significant growth opportunity for SAP,” says Henning Kagermann, CEO, SAP. “The acquisition of Retek is in keeping with SAP’s 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.”