Oracle buys another Retail Tech Co

by Deepak Sharma on Tuesday, July 05, 2005

After $700 Million acquisition of Retek which makes software for retailers in April, Oracle today purchased privately held ProfitLogic Inc.

"ProfitLogic's software provides analysis that helps retailers put the right product, in the right store, for the right customer, at the right time," said Duncan Angove, general manager, Oracle's Retek Global Business Unit. "Our acquisition of ProfitLogic will create the most comprehensive software solution for the retail industry. With ProfitLogic's Retail Profit Optimization software, Retek's end-to-end retail products, and Oracle's infrastructure software and ERP applications, we will be able to offer an integrated solution for retailers of any size and in any industry."

"ProfitLogic has been a pioneer in the area of merchandising analytics and optimization for more than 20 years. Our solutions help many leading retailers enhance their merchandising with greater insight into customer demand, enabling more localized assortment, allocation and pricing decisions," said Scott Friend, co-founder and president, ProfitLogic. "This powerful combination will enable us to accelerate our ability to drive dramatic financial improvement for a larger set of leading retailers worldwide."

In my view, the biggest draw for Oracle in this deal is ProfitLogic's customers with likes of American Eagle Outfitters, Ann Taylor, Bloomingdale's, The Children's Place Retail Stores, Famous Footwear, JC Penney, Marshall Field's, Nordstrom, Reitmans, ShopKo Stores, and Toys R Us, among others. Second reason could be the rebounding of retail industry which would result in increased spending by the Retailers in Technology.

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