SSA Global grabs Arzoon

Acquisitive ERP vendor SSA Global has snapped up logistics technology specialist Arzoon. The move bolsters SSA Global’s supply chain management (SCM) offering as it targets the extended enterprise solutions space.

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By  Stuart Wilson Published  June 18, 2004

Acquisitive ERP vendor SSA Global has bought integrated logistics and global trade management technology specialist Arzoon for an undisclosed sum. The move bolsters SSA Global’s supply chain management (SCM) offering as it looks to offer extended enterprise solutions. SSA Global is also gearing up for a stock market flotation after filing its IPO registration statement with the Securities and Exchange Commission (SEC) in the US earlier this month. Although SSA Global has a direct sales force in the Middle East, channel partners still account for some 70% of sales. SSA Global is keen for regional partners to look beyond the traditional ERP implementation opportunity and start cross-selling customer relationship management (CRM), product lifecycle management (PLM) and SCM solutions as well. “The acquisition of Arzoon demonstrates our ongoing commitment to provide worldwide customers with increased value through extended solutions,” said Mike Greenough, president, chairman and CEO of SSA Global. “The combination of SSA Global and the supply chain execution functionality from Arzoon is a natural fit. We share several customers in the manufacturing sector, including companies in the high-technology, consumer packaged goods, logistics and transportation industries.” Arzoon’s unified supply chain execution (SCE) infrastructure will strengthen SSA’s supply chain management (SCM) solutions. Arzoon will be integrated with SSA Global's current SCM offerings: SSA Transportation Management and SSA Warehouse Management. SSA Global plans to raise up to US$200m through its IPO. The plan to take the company public highlights investors’ renewed interest in tech stocks after a barren period. More than a dozen technology companies have already registered for IPOs in the US this year. SSA Global is one of a number of companies cited by Oracle to demonstrate the diversity of business applications vendors available to customers. Proving vendor diversity is available is a pivotal point in Oracle’s antitrust battle with the US Department of Justice as it attempts to wrest control of PeopleSoft. SSA Global has close to 3,700 staff and posted third quarter sales for the period ending April 2004 of $164.7m. Europe, Middle East and Africa contributed 38% of this total. Sales more than doubled year-on-year as SSA Global’s top line total reaped the rewards from its acquisitions of Baan and EXE, in July 2003 and December 2003 respectively.

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