RedPrairie's Sequencing Capabilities Enable Auto Manufacturers to respond to Increasing Consumer Demand for Customized Vehicles
Waukesha, WI - RedPrairie Corporation, a global leader in supply chain technology solutions that enable business process transformation, announced today that, it has signed a definitive purchase agreement to acquire Alta A/S, a leading provider of Manufacturing Event Management solutions for automotive suppliers. Through the acquisition, RedPrairie will offer the most advanced technology to assist the automotive industry with "Build to Order" manufacturing and respond to consumer demand for customized vehicle options. RedPrairie will provide Alta's standard software solution PowerB2O(TM) and related professional services.
Says RedPrairie Company Leader John Jazwiec, "'Build to Order' is fast becoming the only viable way the automotive industry can economically manufacture vehicles. Consumers today expect to purchase cars and trucks to their exact specification. In an industry with enormous opportunity for modifications and variations, automotive manufacturers require software that enables them to exactly sequence the customer specified parts required to assemble a vehicle. Through this acquisition, RedPrairie will offer the most robust 'build to order' software capabilities for the automotive market."
RedPrairie's Build to Order (B2O) solution provides a unique process flow control application that uses icons to pictorially illustrate the parts and sequencing process required for each customized end product. Once the business processes have been defined, the tool automatically plans the most advantageous and efficient process to dramatically reduce throughput times and allow significant flexibility to change the process should the manufacturing line require.
The B2O solution has a proven track record with major Tier-1 component suppliers to the automotive industry. Fifty operational sites in Northern Europe, Eastern Europe, Southern Europe, United States, South America and China currently use the technology.
Comments Jazwiec, "The Automotive sector is an extremely important market to RedPrairie. We already help many Automotive companies such as Volkswagen, Volvo Trucks, Mann Trucks, Skoda, General Motors and Honda manage their spare parts distribution. Our new sequencing capabilities will enable us to better serve these customers. Also, because this functionality will be integrated to our comprehensive supply chain solution suite, RedPrairie will provide expanded functionality for Logistics Service Providers who serve the Automotive industry."
Adds Martin Hiscox, RedPrairie EMEA leader, "The acquisition of Alta is a strategic one for us geographically, as well. The Kiev, Ukraine-based development office opens up opportunity for RedPrairie to expand its customer sites within the Eastern European marketplace. In addition, Alta provides a further bridgehead for RedPrairie into the Nordic region, where we have experienced success with such organizations as IKEA, DFDS and Volvo, amongst others. RedPrairie's global scale, size and market position will assist further market penetration of Alta products on a global basis."
Ulrik Jorring, Investment Director from Danish investor Vaekstfonden, says, "ALTA has developed over the last several years from an embryonic start-up in Denmark to become a very successful and respected organization. At this point in the company's development, it makes sense to partner with a global organization to meet the demands of a global marketplace. We are delighted that Alta will become part of RedPrairie. Both companies share similar professional philosophies and complementary cultures that focus on customer satisfaction. We wish them the best in the future."
Alta Chairman Ian Shepherd says, "On behalf of Alta's major shareholders 3i and Peter Solbeck, we are all delighted that Alta will be joining forces with RedPrairie. After investing in Alta over the last few years to develop a world leading 'Build to Order' manufacturing software suite, this change will provide greatly enhanced capabilities and worldwide support for our customers into the future."
RedPrairie's comprehensive, integrated solutions suite includes: warehouse management; transportation management; workforce performance management; event management; slotting; visibility; performance measurement; home delivery from retail stores; customs, duty management and International Trade Logistics (ITL); and RFID for EPC / ISO compliance and mobile resource management.
With a capital base of Euros 300 million Vaekstfonden is one of the largest Danish VC players. The company offers compelling value propositions for companies and investors.
Vaekstfonden is a state backed investment company that provides funding to fast-growing Danish companies and acts as a fund-of-funds investor in the private equity sector in the Nordic region.
Vaekstfonden invests in early stage ventures mainly focusing on Life Science/Med Tech and High Tech, and provides mezzanine financing to a broad range of industries.
It is part of Vaekstfonden's strategic objectives to work actively to facilitate access to international venture capital and drive the development of an internationally competitive private equity environment in Denmark. vf.dk/ukforside
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders.
In the year to March 31, 2005, 3i invested £962m, including co-investment funds. 3i's Venture Capital business invested £144m in the year to March 31,2005 in early stage technology companies globally across four specialist sectors: communications, software, healthcare and electronics, semiconductors and advanced technologies ("ESAT"). www.3i.com
About RedPrairie Corporation
For over 30 years RedPrairie has enabled leading global companies to create competitive advantage through supply chain excellence. RedPrairie's comprehensive technology solutions provide rapid and sustainable return on investment by optimizing the performance of people, places and processes. RedPrairie's industry differentiator is its Extended Supply Chain Execution (eSCETM) suite, which uniquely provides end-to-end resource optimization, from the start of the manufacturing process, through the entire distribution chain, including the presentation to the consumer.
RedPrairie provides industry-tailored solutions for diverse markets, including consumer goods, direct to consumer and traditional retail, food and beverage, high tech / electronics, third party logistics, industrial / wholesale, automotive and service parts, and pharmaceuticals.
For additional information, call 1.877.733.7724, or access www.RedPrairie.com.
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