ILOG Completes Acquisition of Supply Chain Vendor LogicTools
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PARIS and MOUNTAIN VIEW, Calif., April 11 -- ILOG® (Nasdaq: ILOG; Euronext: ILO; ISIN: FR0004042364) today announced it has completed its acquisition of LogicTools, a Chicago-based provider of supply chain planning applications, creating a new business division focused on supply chain applications sales and services, called LogicTools, a Division of ILOG.
The acquisition, which has been applauded by industry analysts, brings together a leader in supply chain network design and inventory optimization -- LogicTools -- with the leader in detailed scheduling solutions to provide a more comprehensive range of supply chain applications to customers. In an article on ILOG's intent to acquire LogicTools, AMR Research Senior Analyst, Mark Hillman, said, "The combination, which has a lot of potential, reflects important market dynamics." He added, "One promise of the combination is that all companies need this type of strategic SCM decision support. ILOG can also target broader optimization areas, showing how its tools and applications can help with supply chain problems."
Simon Bragg with research firm, ARC Advisory Group, commented, "There are considerable synergies between the two companies, which will benefit customers."
LogicTools co-founder, Edith Simchi-Levi, will become vice president of operations for LogicTools, a Division of ILOG. All of the 43 LogicTools employees have also accepted offers of employment to join the Company. LogicTools' Co-founder David Simchi-Levi, and a professor at the Massachusetts Institute of Technology, will continue as a consultant to ILOG.
The transaction will be paid entirely in cash, compared with a combination of cash and stock as previously reported. Also, as previously stated, the acquisition will have a negligible impact on ILOG's growth and U.S. GAAP profit in the fiscal year ending June 30, 2007 and is expected to be accretive to the Company's U.S. GAAP profit in fiscal 2008.
About LogicTools
Founded in 1995 by David Simchi-Levi, Professor of Engineering Systems at MIT, LogicTools, a division of ILOG, provides strategic and tactical supply chain optimization applications designed to complement existing IT investments. LogicTools' product suite allows companies to make a wide range of supply chain decisions, from choosing the best strategic network design, deciding on the most efficient sourcing strategy to optimizing inventory placement throughout the different levels of the supply chain. For more information, please visit logic-tools.com
About ILOG
ILOG delivers software and services that empower customers to make better decisions faster and manage change and complexity. Over 2,500 corporations and more than 465 leading software vendors rely on ILOG's market-leading business rule management system (BRMS), supply chain planning and scheduling applications, and optimization and visualization software components, to achieve dramatic returns on investment, create market-defining products and services, and sharpen their competitive edge. ILOG was founded in 1987 and employs more than 800 people worldwide. For more information, please visit http://www.ilog.com/.
Source: ILOG
CONTACT: media, Susan Peters, +1-650-567-8109, speters@ilog.com
Web site: http://www.ilog.com/
http://logic-tools.com/
