The acquisition, which has been applauded by industry analysts, brings together a leader in supply chain network design and inventory optimisation â LogicTools â with the leader in detailed scheduling solutions to provide a more comprehensive range of supply chain applications to customers. In an article on ILOGâs intent to acquire LogicTools, AMR Research Senior Analyst, Mark Hillman, said, âThe combination, which has a lot of potential, reflects important market dynamics.â He added, âOne 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.â
Simon Bragg with research firm, ARC Advisory Group, commented, âThere 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. LogicToolsâ 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 ILOGâs growth and U.S. GAAP profit in the fiscal year ending June 30, 2007 and is expected to be accretive to the Companyâs U.S. GAAP profit in fiscal 2008.