Logility Inc., a supplier of collaborative solutions to optimize the supply chain, has acquired certain assets and the distribution channel of Demand Management Inc., a provider of supply chain planning systems marketed under the Demand Solutions brand, for $9.5 million in cash. Under the terms of the agreement, Demand Management will immediately become a wholly owned subsidiary of Logility.
Mike Campbell, president and CEO of Demand Management, will remain with the company as president of the new subsidiary. The acquisition is expected to contribute approximately $10 million in annual revenue to Logility, with 50% as a recurring component.
Logility will gain more than 800 active customers in the small and midsize business (SMB) market, which brings the Logility customer base to approximately 1,100. Logility will continue to sell Demand Solutions as a separate product line to the SMB market through Demand Management's existing value-added reseller distribution network, which currently serves customers in more than 70 countries. Logility will also continue to offer the Logility Voyager Solutions suite to its traditional target market of upper-midsize to Fortune 1000 companies with distributive-intensive supply chains.
The Demand Solution products include supply chain forecasting, demand planning, inventory planning and replenishment planning. The Demand Solution Stores product enables store-level forecast modeling and replenishment capabilities for retailers.