August 17, 2005, 12:00 AM

Manhattan Associates to buy Evant to expand supply chain offerings

Manhattan Associates, a provider of supply chain software for retailers and their suppliers, has agreed to pay about $50 million cash to acquire Evant, a vendor of demand forecasting and replenishment technology, Manhattan said today.

 

Manhattan Associates Inc., a provider of supply chain software for retailers and their suppliers, has agreed to pay about $50 million cash to acquire Evant Inc., a vendor of demand forecasting and replenishment technology, Manhattan Associates said today.

Manhattan Associates, a publicly traded company based in Atlanta, specializes in supply chain execution and optimization technology that helps retailers and their trading partners smooth out the processing of goods from suppliers to retail distribution centers and stores. The company offers a full suite of logistics applications, including systems for managing warehouse inventory, transportation and reverse logistics. By adding San Francisco-based Evant to its stable of product offerings, Manhattan Associates will complement its base in supply chain systems with Evant’s applications for managing the demand side of the supply chain, said Manhattan Associates president and CEO Pete Sinisgalli.

"We believe the extension into supply chain planning and replenishment is a natural evolution for Manhattan Associates,” he said. “We know from experience with our joint customers, that companies with the best supply chains in the world are looking for a single business partner to provide solutions and expertise for integrating their supply and demand networks."

Paul Gaffney, executive vice president of supply chain for Staples Inc., which is customer of both vendors, said the combined company will support the retailer’s overall supply chain efforts. “Supply chain performance is critical in supporting Staples’ commitment to making it easy to buy office products,” he said. “We see tremendous synergy and value in Manhattan Associates providing a total supply chain footprint in our operation.”

Alexi Sarnevitz, an analyst with AMR Research Inc., said the acquisition will strengthen Manhattan’s presence in the retail industry. “A successful integration of the two will significantly enhance Manhattan’s position among retailers seeking more of a one-stop shop for their supply chain planning and execution needs,” he said.

Sarnevitz asserted, however, that Evant “does not offer a full complement of the advanced functionality that retailers are demanding today,” and that its “demand forecasting is lacking in the current planning functionality, and the assortment planning module is designed primarily for catalog retailers without the location planning needed for a store-centric operation.”


Paula Rosenblum, director of retail research at Aberdeen Group Inc., says Manhattan brings to Evant much-needed capital and a professional services organization to deploy its technology across a wider base. Because both companies are migrating to a J2EE, web services platform, she adds, this should make it easier to integrate Evant`s planning engine into a platform that contains Manhattan`s supply chain execution, workflow, exception management and scorecarding features.

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