Infor Buys Supply Chain Management Firm GT Nexus
Infor is buying GT Nexus for $675 million, and with it the company’s cloud-computing expertise and roster of major corporate clients.
GT Nexus helps companies such as Caterpillar Inc. manage their supply chains. PHOTO: JESSICA RINALDI/REUTERS
Enterprise software firm Infor Inc. has agreed to acquire cloud-based supply chain management firm GT Nexus Inc. for $675 million, the company said Tuesday, as business solution providers race to accommodate the changing needs of supply chain executives.
New York-based Infor, which is one of the world’s largest suppliers of enterprise resource planning, or ERP, software, helps companies including aerospace, technology and pharmaceutical companies to track various components of their business. Oakland, Calif.-based GT Nexus provides cloud-based services, or software hosted on the remote servers, that allow companies to manage inventory and orders, and help companies communicate up and down the supply chain.
GT Nexus facilitates more than $20 billion in payments between buyers and their suppliers across 90 countries in eight currencies, according to a Tuesday release. Clients include Adidas AG, Caterpillar Inc., Deutsche Post DHL, A.P. Møller-Maersk, PfizerInc. and many manufacturers and retailers.
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The deal comes as more companies are relying on technology to better manage, and gain more visibility, into the various functions within their supply chains, from sourcing to distribution. Sales of supply chain management software grew 10.8% in 2014 to $9.9 billion, driven primarily by companies specializing in cloud-based services providing niche products, according to research firm Gartner Inc.
Christine Dover, analyst at research firm IDC, said the move will increase competition for the business software market leader, SAP SE, which has also begun to provide similar cloud-based supply chain management offerings. She expects more consolidation as larger business software firms look to smaller niche firms to fill gaps in their services. In many cases, the companies already share clients.
“ERP systems are really needing to modernize and change,” Ms. Dover said. “This is really good for Infor.”
Smaller companies that specialize in networked services will help larger ERP providers do that, she said.
