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Manhattan’s Footprint Grows With Intrepa Acquisition

Written By: Steve McVey
Published On: November 17 2000

Manhattan’s Footprint Grows With Intrepa Acquisition
S. McVey - November 17, 2000

Event Summary

Supply chain execution vendor Manhattan Associates recently acquired Intrepa LLC for $30 million in cash, notes, and stock. Privately held Intrepa makes software for transportation and distribution planning and will complement Manhattan's solutions for warehouse management, inventory management and collaboration.

"Our combined capabilities offer the market a broader range of industry leading supply chain execution software and services. This transaction increases our industry leadership role by adding strong new technologies and, more importantly, experienced professionals. This last point was crucial to completing the deal," said Manhattan Associates President and CEO Richard Haddrill in announcing the acquisition. "The benefits to our collective customers are significant. Manhattan Associates' customers will gain access to Intrepa's transportation solution, while Intrepa's customers can take advantage of our new optimization product suite and infolink."

Market Impact

In acquiring Intrepa, Manhattan has admitted that it lacked a complete transportation management product or at least that it was unable to convince the marketplace that it did. Although it maintained that its PkMS application provided functionality for both transportation and warehouse management, Manhattan was generally regarded strictly as a WMS vendor. Manhattan's product, PkMS, was originally developed as an order picking system for warehouses and distribution centers. Over time, Manhattan added functionality beyond the strict boundaries of order picking and warehouse management, such as outbound distribution, work order management, and freight management.

Intrepa's Logistics PRO product brings more complete transportation planning capabilities to Manhattan PkMS and includes features for customer compliant labeling, reverse logistics, productivity tracking, and an executive information system (EIS). The broader footprint in supply chain execution possessed by the combined entity will allow Manhattan to compete more effectively in the still fragmented warehouse and transportation management system market. In addition, Manhattan will have legitimate claim to at least three new industry verticals: publishing, automotive, and healthcare/pharmaceuticals.

User Recommendations

Prospective customers in Manhattan's core industry verticals, retail, apparel, and consumer goods manufacturing, should look favorably on the acquisition in the long term. There will be a few rough spots on the path until then, though. Although Intrepa's products are largely complementary to those of Manhattan, the integration work ahead will involve some areas of overlap, which will have to be handled carefully. For example, Intrepa Logistics PRO also offers some warehouse management capabilities that are suited to the same verticals (consumer goods manufacturing, food/beverage) as Manhattan PkMS. Users should not expect a unified suite of applications to be available before 2Q 2001.

 
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