EXE to acquire AllPoints Systems
Staff -- Logistics Management, 3/1/2001
Logistics managers will soon find that the ranks of warehouse management systems (WMS) vendors have shrunk by one. A leading WMS maker, EXE Technologies Inc. of Dallas, has signed a deal to purchase rival AllPoints Systems Inc. of Norwood, Mass. The acquisition involves a stock swap whereby EXE will issue 1.6 million shares in exchange for the outstanding securities of AllPoints—a deal worth an estimated $30 million.
EXE Technologies recorded revenues of $126 million in 2000, making it the second largest provider of WMS software, according to AMR Research of Boston. AllPoints, on the other hand, earned $9 million in revenue last year, AMR reports. AllPoints has concentrated on providing warehousing software to retailers and grocers. "They (AllPoints) were struggling to make a splash in the overcrowded WMS market," observes AMR Analyst Chris Newton.
Although EXE has its own WMS product, the Dallas software vendor says that AllPoints' technology will strengthen its ability to deliver one-to-one fulfillment, including single-unit picking, packaging, and shipping in high volumes. "AllPoints had a niche in high-volume pick-pack operations," says Newton. "EXE products were not strong in high-volume, small-piece operations."
EXE executives say they believe that their affiliation with AllPoints will open up new markets. "We see an opportunity with AllPoints Systems' innovative technology to broaden our fulfillment functionality and accelerate the extension of our process management capabilities beyond the four walls of fulfillment centers," says EXE's president and chief executive officer, Ray Hood. "We also believe the combination will enable us to expand into new verticals and better address the needs of small and medium-sized enterprises, a rapidly growing segment of the supply chain execution market."
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