SAP to Acquire Retail Software Provider
German software giant SAP AG said it is acquiring Scottsdale, Ariz.–based software provider Khimetrics Inc. for an undisclosed sum.
Khimetrics develops and markets priceoptimization software, which uses analytics and other tools to help retailers determine how to price and position items to boost margins and optimize demand. The company has experienced sales growth of more than 1,600 percent since 2001 and has been named one of the 500 fastest-growing private companies in the United States for the past two years.
SAP’s move comes on the heels of rival Oracle Corp.’s acquisition of Cambridge, Mass.–based ProfitLogic, which offers products similar to Khimetrics’.
Both companies have been grabbing a larger stake in the retail market. Price-optimization software has come into demand as retailers look for more ways to enhance margins in a highly competitive environment.
SAP officials said the acquisition would complement the company’s in-store solutions and help build on its overall product offerings, which now extend from back-office management to the store level.
“We’re continuing to strategically add companies that bring valuable functionality to our product suite and extend our leading position within key industry verticals such as retail,” said Jim Hagemann Snabe, general manager, industry solutions, SAP.
The deal is expected to be completed in January 2006. SAP said it intends to maintain the Khimetrics’ Scottsdale, Ariz., location and current staff of 130 employees. —Robert McAllister
