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.
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