After several years of market contraction, the global market for Warehouse Management Systems (WMS) grew by over 5% in 2004. According to a report titled "Warehouse Management Systems Worldwide Outlook Through 2009" by ARC Advisory Group, a Dedham, Ma. -based consulting company, the market was $1,067 million in 2004 and is forecasted to be over $1,339 million in 2009.
"Based on the number of acquisitions and mergers in this market (there were over 20 acquisitions or mergers of companies with WMS solutions), the market's growth has been surprisingly strong," says Steve Banker, service director for supply chain management at the ARC Advisory Group, and principal author of the study. "While some acquired companies with WMS solutions can expect to continue to grow their revenues, historically mergers and acquisitions have more often served as a drag on growth."
Over the past two years a number of companies were active in the mergers and acquisition arena. Some of the transactions include:
- Oracle acquired PeopleSoft in December of 2004. Previous to this PeopleSoft had acquired JD Edwards, which did offer a WMS solution.
- Infor acquired the ERP companies Lilly Software Associates, NxTrend, and daly.commerce between March and September of 2004.
- Retailix acquired OMI International, which focuses on the grocery industry.
- RedPrairie acquired LIS, a European supplier, in February of 2004. RedPrairie, in turn, was acquired by Francisco Partners, a private venture fund, in May of 2005.
For more information on the study, visit www.arcweb.com/res/wms