The Supply Chain Matters blog features our March 29, 2019 Edition of This Week in Supply Chain Management Tech, a brief synopsis of noteworthy supply chain management focused technology news which we believe would be of specific interest to our global-based readership.
Included in this edition are roughly three weeks of highlights related to noteworthy announcements and/or developments related to:
ZF Friedrichshafen and Wabco Holdings,
Related Companies and Quiet Logistics,
I.D. Systems and Pointer Telocation,
Descartes Systems and Microsoft,
ZF Friedrichshafen Executes Another Acquisition in Trucking and Automotive Component Supply
Wabco Holdings, a supplier of brakes and truck safety systems, agreed to be acquired by ZF Friedrichshafen for a reported sum of roughly $7 billion.
The Wabco deal follows ZF’s $12 billion acquisition of parts supplier TRW Automotive four years ago rivaling the size of other major global industry suppliers Robert Bosch and Denso to be positioned as a strategic supplier of conventional transmissions and chassis, and high-tech systems. Reportedly, the acquisition of Wabco is to target commercial vehicles manufacturing, as that industry transforms to more electric and hybrid powered long and short-haul delivery vehicles.
According to reporting by The Wall Street Journal, Wabco’s existing investors were expecting a more generous offer than the 13 percent premium provided in the ZF offer.
Real Estate and Venture Firm to Acquire Quiet Logistics
Related Companies, a real estate investment firm that has invested in logistics properties, is partnering with logistics investment firm Greenfield Partners, to acquire upstart customer order fulfillment provider Quiet Logistics Inc. for an undisclosed amount.
Related its entering the venture via its Fund Management platform, leveraging the firms prior investments in upscale online focused retail brands.
Plans call for expanding the Quiet Logistics network of fulfillment centers to the U.S. west coast and Midwest and extending globally in the coming years. The company was founded in 2009 and has grown to become an important player in the eCommerce Infrastructure segment. The provider specializes in third party fulfillment for companies that sell their wares on the Internet and is best known as the “quiet” back-end fulfillment provider for some noted apparel and accessories brands in the world.
As part of this deal, Quiet Logistics Founder and warehouse technology icon figure Bruce Welty has returned to the company in the CEO role and will continue to work with the existing management team to grow the business. In addition to founding Quiet Logistics, Welty also founded and led Locus Robotics, a purpose-built warehouse robotics technology provider focused on online fulfillment process automation needs.
I.D. Systems to Acquire Pointer Telocation
I.D. Systems Inc., a provider of enterprise asset management and Industrial Internet of Things (IoT) technology and Pointer Telocation Ltd., a provider of telematics and mobile-based IoT applications support have entered into a definitive agreement whereby I.D. Systems will acquire all of the outstanding shares of Pointer in a cash and stock transaction valued at approximately $140 million.
According to the announcement, I.D. Systems CEO and CFO are to lead the combined company with Pointer’s existing CEO to serve as CEO of international operations and as a member of the PowerFleet Board of Directors. Pointer’s current CFO will reportedly serve as Deputy to CEO International.
The combined businesses generated $131 million of revenue including $72 million in recurring revenues, and management expects upwards of $3.5 million of cost savings to be realized within the first 12 to 18 months following the close of the acquisition. The acquisition is expected to close in the Summer of 2019.
Descartes Selects Microsoft Azure for Cloud Technology
Logistics technology services provider Descartes Systems Group announced that it has selected Microsoft Azure to power its software applications in a broad variety of vertical industry applications.
The tech provider currently utilizes Azure services in certain business segments, and this announcement broadens leveraged use of Azure AI, Azure Databricks, Azure SQL Server Managed Instance Database and Microsoft Power BI to support applications leveraging machine learning, business intelligence and data visualization.
Note to Readers- Supply Chain Matters will feature our This Week in Supply Chain Tech series as announcements warrant.
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