Oracle to Acquire ProfitLogic
Redwood Shores, Calif.–based software giant Oracle Corp. has reached an agreement to acquire Boston-based ProfitLogic Inc., the current leader in retail profit optimization software. Terms of the deal were not released. The transaction is expected to close at the end of the month.
ProfitLogic provides scientific-based software solutions using consumer data and input from merchandising managers to help retailers with their decisions for markdowns, pricing, forecasting and other areas. Company officials said the product generally helps stores improve their margins by 5 percent to 15 percent.
The impending acquisition comes on the heels of Oracle’s recent acquisition of Minneapolis-based Retek Inc., which provides merchandise management solutions that deal with supply-chain management and demand planning.
ProfitLogic’s client base includes Bloomingdale’s Inc., American Eagle Outfitters Inc., J. C. Penney Co. Inc., Nordstrom Inc., Ann Taylor and Marshall Field’s, among others.
“This category [of software] has been a key component of driving improved financial performance at major retailers,” said ProfitLogic founder Scott Friend during a conference call announcing the acquisition. “No one can win the battle of efficiency against Wal-Mart. The way the battle will be won in the years to come will be based on customer intimacy.”
“It builds on a shared vision that customer knowledge should be the foundation for all the decisions a retailer makes,” added Oracle/Retek General Manager Duncan Angove.
Angove noted that the acquisition will bring a total of 1,900 customers into the Oracle fold. Oracle executives said they expect the transition to be smooth because 90 percent of ProfitLogic customers use the Oracle database.
—Robert McAllister
