Oracle LogFire – SpotLight

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logfire

Oracle Acquires LogFire

Financial Terms: not publicly available

 

  • Oracle announced Tuesday that it is acquiring LogFire, an Atlanta, GA-based company that provides cloud-based warehouse management system (WMS) applications.
  • The addition of LogFire will complement the logistics functionality of the Oracle SCM Cloud.
  • LogFire received a Series A investment led by Edison Ventures with co-participation by Fulcrum Equity Partners in 2007.
  • LogFirecurrently has an estimated 50-100 employees and its WMS is used by 40 companies.

 

Oracle &LogFire Partnering Prior to the Acquisition

  • Supply chain organizations are under pressure to provide omni-channel fulfillment and integrated logistics capabilities
  • In 2015 LogFire partnered with Oracle to integrate its flagship WMS with Oracle’s Transportation Management Cloud(OTM) to create the industry’s first 100% cloud-based supply chain execution convergence(SCEC) solution.
    • SCEC was a term coined by Gartner in 2009 and refers to the synchronization and integration of SCM processes across enterprise departments.
  • Oracle’s Transportation Management Cloud was released in 2014 and continues to maintains market momentum.
    • Gartner rates OTM as the strongest leader and visionary when compared to competitor systems.
  • The system integration between LogFire’s WMS and OTM Cloud was handled by Inspirage and successfully completed in August 2015.

 

Oracle Continues its Cloud Acquisition Strategy

  • Oracle has been focused on repositioning itself as a leader in cloud services through a series of acquisitions in cloud technology, SaaS providers, and vertically focused SaaS capabilities.
  • Cloud revenue currently represents 8% of Oracle’s total revenue, more than double compared to 2013
  • Targeting traditional vertical markets with large data programs that have been slow to implement the cloud has been a focus in Oracle’s acquisitions.
    • Opower– cloud-based utilities industry application provider
    • Textura – construction and engineering industry software provider
    • MICROS Systems – hospitality industry point-of-sale systems and hardware provider
  • IDC estimates global cloud adoption to increase from 29% today to 43% in 24 months (44% growth)

 

Growth-focused M&A Activity in the Logistics and Transportation Space

  • The logistics and transportation management space has seen a recent surge in investments and M&A activity from both strategic buyer and private equity segments.
    • Notable activity includes Blackstone Group’s equity investment of $570M into JDA Software, challenging Honeywell’s original agreement of a $3B buyout.

 

Date Buyer Target EV ($M) Notes
06/01/16 Salesforce Demandware 3,108.6 Salesforce acquired Demandware, a provider of omni-channel management solutions
05/03/16 Kewill LeanLogistics N/A Backed by Francisco Partners, Kewill acquired TMS provider LeanLogistics
12/03/15 Mainsail Partners 3PL Central 17.5 Mainsail Partners put $17.5mm of growth equity into 3PL Central
02/26/15 Strattam Capital Trax Technologies N/A Strattam Capital bought a majority of Trax’s shares for an undisclosed price and provided an additional $10m of growth capital

 

TBP was NOT an advisor to this transaction