Körber Supply Chain Software signs deal to acquire MercuryGate

Hamburg, Germany-based Körber Supply Chain Software, a joint venture between Körber AG and KKR and a provider of end-to-end supply chain software services, including software, automation, mail and parcel solutions, voice solutions, robotics, and material handling, said yesterday it inked a binding agreement to acquire Cary, N.C.-based transportation management systems (TMS) services provider MercuryGate International Inc.

Terms of the deal were not made publicly available. The transaction is subject to customary closing conditions and regulatory approvals, according to Körber officials.

The company added that MercuryGate is known for its strong capabilities in multimodal optimization and execution and also its expertise and capabilities in driving rapid implementation and time to value. And it added that the acquisition is a strategic move that extends Körber Supply Chain Software’s capabilities in delivering what it called a comprehensive, innovative, adaptable and scalable supply chain execution portfolio.

Established in 2009, MercuryGate provides cloud-based TMS software, geared towards solving complex, high-volume transportation challenges, across various logistics and supply chain segments, including: claims management; final mile; shipment and order visibility; multimodal optimization; customs and trade compliance; import and export logistics; global sourcing; and product integrity and compliance.

Supply Chain Software cited various ways in which its customers and MercuryGate’s customers will benefit from this deal, including:

• providing a software offering that connect across inbound and outbound supply chain activities, improving cost efficiencies and customer experiences by optimizing placement, usage, and routing of goods;
• a resilient and reliable supply chain platform with visibility across inventory pools, enabling customers to identify growth opportunities as well as predict and rapidly respond to potential disruptions; and
• simulation capabilities to evaluate future supply chain strategies and understand ROI across their local and global business

Sean Elliott, EVP & CTO at Körber Supply Chain Software, told LM that Körber Supply Chain Software and MercuryGate have had a strong relationship for years and a long respect for each other's capabilities in the market. 

“Over this period, it became clear that our customers were collectively looking for innovative solutions to problems that are broader than TMS, WMS, or OMS alone,” he said. “In particular, our customers need a trusted partner to assist them in improving a combination of resilience and cost that is only possible by ensuring seamless operation between various parts of a customer's supply chain organization. Today's market is demanding a suite of solutions that allow them to focus on single offerings, or the suite as a whole, knowing that each of the products are best in class, integrate strongly with their overall IT ecosystem, are adaptable to their unique needs, and unlock actionable visibility, collaborative planning and execution, while empowering innovation to drive future growth.”    

And as Körber Supply Chain Software considered MercuryGate over the last few months, Elliott said it was clear that MercuryGate would enable the company to uniquely satisfy this need, as the leading independent, comprehensive suite of TMS solutions leveraging data and automating mission critical workflows across the entire supply chain, and as an organization, like Körber, that he called truly customer centric. 

What’s more, he explained that Körber could not be more excited about this deal for its customers—both those currently trusting MercuryGate and those at Körber Supply Chain Software. 

“First and foremost, we're excited to be a better partner for global customers as we bring strong capabilities that span the whole of supply chain execution,” he said. “As an example, WMS customers will find us better equipped to assist in transportation topics and vice versa with the world class organization we've now assembled. But bringing together Körber Supply Chain Software and MercuryGate is truly about leading with our products and solutions, and addressing challenges within our customers’ businesses today and tomorrow, and future proofing them for a long time to come through their trusted partnership with our business. 

Customers will have access to solutions that span inbound and outbound supply chain activities with seamless integration to enable better collaboration and optimization of their daily supply chain activities, better equipping them to serve their customers well while improving their responsiveness to supply chain disruptions. Better visibility through our technologies make identifying systemic opportunities in their operations more rapid and actioning those problems more accurate, while bringing in our simulation, gamification, and other innovative technologies will allow customers to differentiate their business through unique supply chain offerings that set them apart from their competition.”

As for next steps, in terms of incorporating MercuryGate into Körber Supply Chain Software, Elliott explained that the first focus will be on bringing the two businesses together strategically, including talent and teams, back office and infrastructure, and products. 

“Beyond integrating our businesses, we will be working on the right integration of our solutions, to ensure that we enhance the value for customers that may only be using one of our products while positioning ourselves to offer unmatched innovation and capability to those who bring multiple of our offerings into their operations,” he said. “Finally, our overall mission is to accelerate innovation, and to leverage our unique portfolio and data scale to create innovative new offerings that drive accelerated potential for our customers into the future.”