(This December 11 story has been corrected to say the letter was sent on Monday, not Tuesday, in paragraph 7)
By Milana Vinn
NEW YORK (Reuters) – Logility Supply Chain Solutions, a maker of artificial intelligence-powered software that helps companies manage their inventories and supply chains, is exploring a sale, according to people familiar with the matter.
The Atlanta, Georgia-based company, which was formerly known as American Software and has a market value of about $400 million, is working with investment bank Lazard to gauge acquisition interest from potential buyers, including private equity-backed technology companies. said, requesting anonymity as the discussions are confidential.
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Deliberations are at an early stage and the sources cautioned that no deal is guaranteed. The company did not immediately respond to a request for comment.
Logility shares rose nearly 11% to hit a 52-week high after Reuters reported on the sale process on Wednesday.
Logility provides software and technology tools that help large companies manage their inventory, manufacturing processes and supply chains. According to its website, the company has more than 550 customers in 80 countries.
Its customers include major corporations including discount store chain Big Lots, Twinkies maker Hostess Brands, underwear brand Jockey International, industrial giant Johnson Controls and aerospace supplier Parker Hannifin.
On Monday, investment firm 2717 Partners sent a letter to the company’s board, urging them to explore strategic options.
In October, the company rebranded itself as Logility and began trading under a new ticker symbol on the Nasdaq. Earlier this year, Logility abolished its dual-class share structure, previously giving co-founder James Edenfield control over the company through his ownership of the special share class.
Edenfield resigned from his position as Logility’s executive chairman in February.
(Reporting by Milana Vinn in New York; Editing by Daniel Wallis)
