Infor announced today that it has entered into an agreement to acquire the world's largest cloud based global commerce platform, GT Nexus, for $675 million. This acquisition brings together two highly innovative organizations, with a complementary solution set that will deliver for customers "the first global commerce cloud with end-to-end control and visibility for the production of direct goods"
Infor, the world's 4th largest ERP provider with roughly 6% of the global ERP market, has certainly demonstrated a commitment to building upon its capabilities with the acquisition. GT Nexus provides companies with a robust suite of supply chain applications designed to deliver visibility and collaboration throughout the value chain through its cloud based platform.
Infor's CEO, Charles Phillips, described the acquisition as a step towards "the postmodern ERP". Product design, manufacture, and shipping is often conducted by a network of companies, rather than a single entity, which requires close collaboration and a refined approach to data management and access. The complexity involved in the value chain today requires the type of access and visibility across supply chain partners that can only be achieved through cloud based applications.
The acquisition of GT Nexus appears to be a move to help position Infor to better compete with ERP leaders SAP and Oracle. The strategy enables customers to implement a two-tiered approach to ERP where the legacy ERP system can remain intact at corporate HQ while remote sites, where an expensive and complex ERP may be more than is required, can take a more specialized approach.
Visibility across the supply chain has been a goal of supply chain organizations for quite some time. Cloud based applications, such as GT Nexus, help to enable actual visibility across the supply chain enabling insight from supply through delivery while helping to track the flow of money throughout the value chain. The GT Nexus network creates a streamlined flow of money and insight by connecting directly into the order management systems of buyers and suppliers. This type of integration enables buyers to send order information through GT Nexus, directly to suppliers, financial institutions, and logistics partners, which provides insight into the flow of both product and money throughout the value chain.
On the added value to be gained through the combination of Infor and GT Nexus solutions, Infor CEO Charles Phillips says "In a complex, high velocity supply chain, all partners need to know what was ordered, when it was built, where it is in transit, if the order has changed, and has it cleared customs. Specialization and speed are moving the future of manufacturing into the commerce cloud." While this vision is nothing new, putting the vision into practice has been a struggle for many firms for a very long time. Perhaps the blending of Infor and GT Nexus will help the supply chain community to realize this vision.
More information can be found via the following link to the official press release: http://www.infor.com/company/news/pressroom/pressreleases/gt-nexus-cloud-commerce/.