Körber to Acquire TMS Provider MercuryGate, Expanding Their Supply Chain Solutions Portfolio

Körber Supply Chain Software announced on August 6 that they have reached an agreement to acquire MercuryGate International Inc., a leading provider of transportation management systems (TMS). Körber, already a global leader in end-to-end supply chain software solutions, is poised with the acquisition to expand their capabilities in delivering comprehensive, innovative, adaptable, and scalable supply chain execution offerings.

Körber Supply Chain Software is a joint venture between Körber AG, a leading international technology group with the goal of progressing entrepreneurial thought to success for customers along with guiding technological change, and KKR, a leading global investment firm. MercuryGate has a reputation for strong capabilities in multimodal optimization and execution, along with expertise and ability to drive efficient implementation and time to value creation. Its Smart Transportation™ suite is a Software-as-a-Service (SaaS) product which delivers powerful transportation and logistics management solutions that have shown to be a competitive advantage for companies.

Körber stated "the acquisition is a strategic move" in their press release announcing the move. The environment in which supply chains operate worldwide has become incredibly complex, dynamic, shifting, and even volatile. Global events in recent years such as the Covid-19 pandemic, war and rising tensions between nations, etc. have made it evident how crucial it is for supply chains to be resilient and agile today. Acquiring MercuryGate allows Körber to expand its portfolio to include solutions for all supply chain execution operations and will likely make them a leader in the management of the movement of goods.

The acquisition will enable Körber to provide solutions that manage supply chains from procurement to receipt and fulfillment for the end consumer, reduction and elimination of organizations operating within silos, acceleration of issue resolution, as well as improvement of business-client outcomes and relationships. Bringing the two companies and their respective portfolios together will also enable the customers to gain:

• Solutions that will connect inbound and outbound supply chain activities, improving cost efficiency along with customer experience by optimizing placement, usage, and routing of products.
• A resilient, reliable, and agile supply chain platform with visibility across inventory pools, allowing customers to identify growth opportunities as well as predict and rapidly respond to potential risks.
• The capability to run simulations to evaluate future supply chain strategies and understand ROI across the entire business.

Ed Auriemma, CEO of Körber Supply Chain Software, was quoted, saying: "Our customers navigate dynamic, volatile supply chain environments under increasingly high expectations for order fulfillment. With the acquisition of MercuryGate, Körber Supply Chain Software is poised to offer an unparalleled combination of advanced technology and deep industry expertise to create innovative processes to help businesses manage these challenges."

Körber Supply Chain Software has a desire to create a suite of unified supply chain execution solutions that are able to conduct real-time optimization and collaboration across an organization's supply chain. The organization's clientele will reap the benefits of integrated processes that work across functions, decision-making that is both rapid and accurate, as well as the ability to predict, avoid, and mitigate risks and disruptions effectively. Acquiring TMS provider MercuryGate will help Körber to achieve this goal.

"This acquisition illustrates our power to execute our ambitious growth strategy, substantially extends our existing supply chain software portfolio, and is a significant milestone to becoming our customers' first choice regardless of their challenge," said Stephan Seifert, CEO of Körber AG. "Furthermore, it is proof that our trustful strategic cooperation with KKR results in additional value for our customers."

Joe Juliano, CEO of MercuryGate, also commented in Körber's announcement: "The addition of MercuryGate's multimodal, SaaS-based TMS to Körber's supply chain software business will create a comprehensive, value-driving supply chain offering for global industry leaders. The combined company is positioned to deliver the broadest and deepest set of supply chain execution software solutions available worldwide."

Peter Rottier, Managing Director at Summit Partners, a partner of MercuryGate's since 2018, also stated, "We believed that global supply chains and growing customer demand for shorter order-to-delivery times would support increased adoption of solutions like MercuryGate's that are designed to help shippers and logistics providers mitigate the costs and complexity associated with transportation."

While the agreement between Körber and MercuryGate is binding, the transaction is still subject to closing conditions as well as regulatory approval. No details on the acquisition, most notably the transaction sum, have yet been released.

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