QAD, a specialist in adaptive, cloud-based enterprise software and services for global manufacturing companies, is buying Allocation Network GmbH, a solution provider for strategic sourcing and supplier management, based in Munich, Germany.
The acquisition, which is expected to close by the end of 2020, will not have an immediate, material impact on QAD’s financial results. The acquisition is in line with QAD’s strategy of acquiring quality products with limited market reach and leveraging QAD’s global footprint and will support QAD’s cloud growth within its existing customer base and strengthen its overall product offering.
QAD will fully incorporate Allocation Network’s sourcing, supplier management and procurement systems into its Integrated Supplier Management portfolio to allow customers to eliminate off-contract buying, increase purchasing power and boost cost savings. Allocation Network will operate as a division of QAD.
“We are excited and delighted to welcome Allocation Network to QAD,” said QAD CEO Anton Chilton. “We see tremendous value in their focus on direct sourcing and procurement, highly experienced team and leadership, strong presence in manufacturing vertical segments, and geographic location. Our company cultures are well matched, focusing on the success of our customers and the welfare of our employees.”
“This strategic acquisition enhances our ability to enable the vision of the Adaptive Manufacturing Enterprise, extending our capability in supplier management and supporting additional cloud growth,” said Chilton. “Additionally, Allocation Network’s strong presence in Germany provides us with an ideal position to continue to address and support that country’s large automotive market.”
