Logistics technology: 3M spins off HighJump Software
After owning the supply chain software company for four years, 3M plans to sell HighJump to a private equity firm
Corinne Kator -- Logistics Management, 5/12/2008
3M announced last week it has agreed to sell HighJump Software to private equity firm Battery Ventures. Terms of the deal were not disclosed.
According to Modern Materials Handling’s (LM’s sister publication) most recent ranking, HighJump is
HighJump officials could not be reached to comment for this story, but Modern did receive a copy of a letter company president Joel Levinson sent to HighJump customers this morning.
“Our entire organization is very excited about this change and the opportunity it represents to enhance our relationships with our customers,” the letter says. It also assures customers they will continue to have access to the same products and services they’re accustomed to.
In the official press release announcing the deal, Dave Tabors, general partner with Battery Ventures, says his firm looks to acquire market leaders in technology-based businesses. “As a leader in the supply chain execution software market, HighJump clearly fits our strategy,” he says.
“We have been evaluating the supply chain software market for over 18 months,” adds Battery Ventures senior associate Jesse Feldman, “and believe HighJump Software represents the best-in-class solution. Moving forward, the company provides us with an excellent platform to grow both organically and through acquisition.”
With no mid-sized warehouse management system providers left in the market, it’s not obvious which other companies Battery Ventures might acquire. ARC Advisory Group analyst Steve Banker suggests the firm may be interested in buying small software vendors whose products are a logical extension of HighJump’s functionality.
Banker says he was surprised when 3M bought HighJump back in 2004, but today’s announcement didn’t surprise him nearly as much. His first impression upon hearing today’s news was that HighJump is a little island in a multi-billion dollar corporation, he says, and that large corporations periodically review their assets and spin off what doesn’t seem to fit anymore.
Editor’s Note: Corinne Kator is an associate editor for Modern Materials Handling
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