IBM has announced a definitive agreement to acquire Massachusetts-based Emptoris, a cloud and on-premise analytics software provider with a focus on supply chain management.
Financial terms of the deal were not disclosed.
Emptoris has offices in the United States, United Kingdom, France, Germany, Australia, India, Brazil and China, and counts more than 350 customers in 75 countries. Its acquisition is the latest in a series of additions to IBM’s “Smarter Commerce” initiative.
Smarter Commerce, launched in March 2011, has a goal to help companies respond to changes in customer buying patterns. The Emptoris purchase will help IBM address the sourcing and procurement of goods and raw materials within its supply chain management offering. The service will also expand to enable deeper inventory management.
IBM said that a global oil and gas company using its commerce platform was able to centralize sourcing across its entire operation in more than 80 countries, allowing it to focus on its highest cost and most frequently bought goods. The supply chain management platform was able to help the company realize a 9 percent reduction on managed categories of goods.
IBM said its Smarter Commerce platform is a $20 billion market opportunity in software alone. The Emptoris addition will allow IBM to target chief information officers, chief financial officers, chief supply chain officers and chief marketing officers, as these procurement and sourcing officers seek better supplier and contract management.
The management tools from Emptoris compliment IBM’s existing business-to-business integration and supply chain management which it acquired through a 2010 purchase of Sterling Commerce. - Geoff Whiting