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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 optimisation – 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 optimisation 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.