Logistics software vendor Kinaxis will spend some $45 million to acquire the Dutch supply chain tech provider MP Objects (MPO), saying that the two firms’ platforms will combine to create a real-time picture of every order across its lifecycle, from planned commitment through ultimate delivery.
The final price of the deal may vary, since 25% of the $45 million total will be paid in equity that is tied to certain revenue and execution goals over the near term, the company said. MPO will continue to operate as a standalone company.
Rotterdam-based MPO offers a cloud-based, supply chain software platform for multi-party orchestration of orders, inventory, and transport. The firm says its control tower integrates supply chain visibility, order management system, and transportation management system software applications, allowing users to gain real-time planning, execution, costing, and analytics for each sales or return order.
“MPO is to supply chain execution what Kinaxis is to supply chain planning – revolutionizing the space by concurrently combining control and visibility of supply chain execution steps across business networks, into a unified cloud platform with one codebase, single user-interface, and real-time optimization in a way no other vendor in the market does,” MPO CEO Martin Verwijmeren CEO, who co-founded the company with CTO Paul van Dongen, said in a release.
In comparison, Ottawa, Ontario-based Kinaxis’ technology integrates business planning with the digital supply chain, combining human intelligence with artificial intelligence (AI) and concurrent planning.
According to the firm, combining the Kinaxis Rapid Response planning and MPO Multi Party Orchestration products will create a full digitization that unlocks supply chain agility and resiliency. In turn, that move will improve customer experience, sustainability, and financial outcomes for its users, who are manufacturers, brand owners, and logistics service providers (LSPs).
“Today’s more complex supply chain networks and higher customer expectations have shown the importance of outside-in thinking and improving the control of material in motion to accelerate and improve decision making. This acquisition will seamlessly activate supply chain concurrency from planning through last-mile execution,” Kinaxis CEO John Sicard said in a release. “We welcome the MPO team and their customers to the Kinaxis community. Uniting these two innovative platforms delivers end-to-end supply chain concurrency, visibility and knowledge across customers, suppliers, and the entire multi-enterprise business network.”
