Oracle Acquires LogFire

 

• 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.

 

TBP was NOT an advisor to this transaction