Aptean, a global provider of mission-critical enterprise software solutions recently announced that it has entered into a definitive agreement to acquire Logility Supply Chain Solutions, Inc. (Nasdaq: LGTY), a provider of AI-first supply chain management software.
Logility provides AI-powered, advanced supply chain planning solutions designed to optimize inventory, improve demand forecasting, and streamline production planning. Logility delivers a suite of solutions including demand planning, inventory and supply optimization, manufacturing operations, network design, and vendor and sourcing management. Logility’s solutions are used by over 500 clients in more than 80 countries, spanning the consumer durable goods, apparel/accessories, food and beverage, industrial manufacturing, fast moving consumer goods, wholesale distribution, and chemicals verticals.
“Logility possesses years of experience helping global organizations design, build, and manage their supply chains” said Aptean’s CEO, TVN Reddy. “The Logility platform delivers a mission-critical suite of AI-powered supply chain planning solutions designed to address even the most complex requirements. We look forward to welcoming Logility’s loyal customers and experienced team to Aptean.”
Strategic and Financial Benefits
- Enhanced Focus: By becoming part of Aptean, a privately held company with strong investor backing, Logility will be able to better focus on its long-term strategy without the additional considerations and costs required of a public company.
- Access to Resources: Aptean will provide Logility access to resources that can help accelerate growth and drive strategy execution.
- Enhanced Combined Offerings: Both organizations offer complementary solution suites with a proven track record of making clients successful. Working alongside each other, the integration of Logility’s and Aptean’s complementary technologies will result in enhanced combined offerings for clients.
- Shareholder and Client Value: The definitive agreement reflects Logility’s commitment to maximizing shareholder value and provides a foundation for Logility to continue making its clients more successful in the future.
“We are pleased to announce this transaction with Aptean, which will deliver significant and immediate value to our shareholders,” said James B. Miller, Jr., Chairman of Logility’s Board of Directors. “Our Board has consistently evaluated the Company’s standalone plan against other strategic opportunities. With the assistance of our financial and legal advisors, the Board conducted a thorough and fulsome auction process commencing late in the summer of 2024. As a result of this process, we unanimously determined that a sale to Aptean represented the best way to maximize shareholder value while also ensuring the Company remains well-positioned to continue providing innovative and leading solutions to clients.”
“Aptean’s acquisition of Logility represents a new and exciting chapter for our Company,” said Allan Dow, President & CEO of Logility. “Logility’s mission is to help organizations build sustainable, profitable supply chains that improve people’s lives and the world we live in. We look forward to continuing to provide AI first solutions to our strong client base alongside Aptean, which has an impressive track record of helping manufacturers and distributors thrive. We believe this transaction is a great outcome for our clients, Company and shareholders and will help Logility achieve its long-term potential.”
Transaction Details
Under the terms of the agreement, Aptean will acquire all of Logility’s outstanding common stock for $14.30 per share in an all-cash transaction. The per share purchase price represents a 27.0% premium to the January 23, 2025 Logility closing share price and a 28.4% premium to the 30-day volume-weighted average share price as of that date. In addition, the per share purchase price represents a 30.1% premium to the unaffected Logility closing share price on Friday, December 6, 2024, prior to 2717 Partners’ public letter on December 9, 2024, calling for Logility to review strategic alternatives, and a 34.1% premium to the 30-day volume-weighted average share price as of that date.
The transaction is expected to close in the second quarter of 2025, subject to customary closing conditions, including approval of the transaction by Logility’s shareholders and receipt of regulatory approvals. The Logility Board of Directors unanimously approved the definitive agreement and recommends that Logility’s shareholders vote in favor of the transaction. The transaction is not subject to a financing condition.
Upon completion of the transaction, Logility will become part of a privately held company, and its shares of common stock will no longer be listed on The Nasdaq Global Select Market or any other public market.
What this means for ERP Insiders
Aptean’s AppCentral platform hastens value creation from acquired entities. Since its founding, Aptean has completed more than 50 acquisitions, and the company’s AppCentral platform provides an expedited on-ramp for acquired applications to interconnect and interoperate with Aptean’s existing stable of industry-specific, fit-for-purpose business applications. Aptean’s AppCentral strategy focuses on delivering an AI-embedded platform that unifies industry-specific, pre-connected applications to streamline end-to-end business operations. By integrating various functions—from customer service to delivery—into a single platform, AppCentral aims to enhance productivity, provide comprehensive visibility, and optimize workflows across the entire enterprise. This approach allows businesses to scale efficiently, reduce IT overhead, and make informed decisions through real-time insights and intelligent automation. The platform’s design emphasizes ease of use, rapid implementation, and adaptability to specific industry needs, positioning it as a transformative solution for organizations seeking to digitize and optimize their operations.
Aptean CEO relies heavily on inorganic growth strategy to meet industry-specific ERP needs. Since 2018, when TVN Reddy became the CEO of Aptean, the company has completed 34 acquisitions. Mr. Reddy was kind enough to host me in Aptean’s Alpharetta, Georgia headquarters in January 2025, when he shared with me his vision for assembling deep industry expertise and purpose-built applications to solve the unique operational challenges of industries such as food and beverage, fashion and apparel, discrete and process manufacturing, and biotech and life sciences. Reddy is a technologist at heart, having started at Aptean in 2013 as Senior Vice President of Engineering, and he has a firm grasp of how transformative technologies like AI will impact everything from his company’s competitive differentiation, to his customers’ purchasing priorities, to his talent acquisition approach. Reddy leads a team of over 3,500 employees, and the company serves more than 10,000 specialized organizations across 20 industries in over 80 countries. Reddy holds a Master of Technology degree from the Indian Institute of Technology, Kharagpur, and a Master of Business Administration from the Wharton School of the University of Pennsylvania. Before joining Aptean, Mr. Reddy spent over a decade at ADP Inc., where he advanced to Vice President of Product Development.
Aptean is on trend with industry-specific enterprise software offerings. Businesses are increasingly favoring industry-specific ERP solutions that offer tailored functionalities, integrate advanced technologies, and provide the scalability and cost benefits of cloud deployment. For instance, in the manufacturing sector, 47% of companies looking to purchase ERP software are seeking solutions tailored to their industry. Industry-specific ERP solutions often present a more cost-effective option for businesses within specialized sectors. These solutions are designed to meet unique industry needs out-of-the-box, reducing the necessity for extensive customizations that are typically required with generic ERP systems. This reduction in customization not only lowers initial implementation costs but also decreases ongoing maintenance expenses. Consequently, while the base price of an industry-specific ERP may be comparable to a generic system, the total cost of ownership is often lower due to minimized customization and maintenance efforts.
