Ilog to acquire Logic Tools supply chain optimisation

Ilog is paying $15 million for the company, which has been seeing rapid growth – two thirds cash and the rest in Ilog stock and the deal is likely to close in April. LogicTools is seen as an innovator in inventory optimisation, one of the keys to modern supply chain optimisation. Analyst AMR Research, for example, says that supply chain network design and inventory configuration were two of the top growth areas for 2005 (latest data available) fuelled by globalisation, high transportation costs and growth in off-shoring. The deal brings some 200 clients to Ilog, which will engineer LogicTools’ software to complement its recently introduced planning and scheduling applications. “This acquisition will significantly strengthen one of the three pillars of our strategy – supply chain planning and scheduling applications,” says Ilog chairman and CEO Pierre Haren. “The acquisition of LogicTools underscores our commitment to address the new challenges faced by global supply chains, and positions us to become a leading provider of supply chain analytics applications.”