Breaking Tech News- E2open Acquires Terra Technology
E2open announced today that it has acquired Terra Technology, a provider of supply chain technology that helps companies support product demand sourcing processes via automated and mathematically-sophisticated software. Terms of this acquisition have not been publically disclosed.
According to an email statement from Michael Farlekas, CEO of E2open, this combination provides the opportunity for E2open trading network members the ability to access real-time product demand signals directly from the end-to-end supply chain network. Further indicated that E2open customers will have access to Terra’s advanced product demand planning, inventory optimization and transportation forecasting applications within the end-end supply chain network.
Today’s announcement represents the first significant strategic move since E2open was itself acquired as a public company and taken private by an arm of Insight Venture Partners in February of 2015.
Since that event, there has been ongoing speculation as to how E2open will be strategically re-positioned as an end-to-end supply chain business network platform supporting both supply chain planning and execution response management.
Since little has been shared up to this point, this independent industry analyst will reserve any opinion or customer advisories until we secure a briefing relative to what led up to today’s announcement and how the long-term strategy is articulated.
At face value, the addition of deeper supply chain planning, demand sensing and inventory optimization capabilities makes some strategic sense. Terra’s industry penetration has been somewhat limited to the consumer packaged goods industry segment which is not currently a core industry vertical for E2open. There are some stellar CPG customers of Terra including Procter and Gamble. We would not be surprised if Terra was experiencing financial difficulties.
The culture of these two companies is quite different as are the technology stacks. Terra has been more concentrated on augmenting product demand sensing needs of SAP backbone environments.
Today’s announcement however is another indication of further consolidation in the up and coming supply chain best-of-breed technology segment since long-term growth strategies are quickly moving away from IPO towards strategic link-ups.
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