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Agile Takes Over Tradec

Agile Software Wednesday said it had acquired privately-held Tradec including key members its support and engineering team.

Both San Jose, Calif.-based companies focus on supply chain management software, which helps bring a product from the drawing board to the store shelves.

Execs said the acquisition enhances Agile's Product Cost Management platform and positions the company as a product lifecycle management (PLM) player. The goal is to use Tradec's technology to improve Agile's analytics capabilities and supplier collaboration for its customers. The list includes nearly 1200 companies such as Alcatel, Boeing, Dell, Flextronics International, Hitachi, Leapfrog, Lockheed Martin, Magna Steyr, Siemens and QUALCOMM.

The acquisition also establishes a relationship for Agile with Avnet, a Tradec partner that specializes in bringing affordable cost management solutions to small and mid-size companies. Agile also said it would begin offering a migration path for Tradec customers.

"Acquiring Tradec is part of our long term strategy to build market share within the PLM sector. We are delighted to bring Tradec customers, technology and talent into Agile," said Agile CEO Bryan Stolle said in a statement. "With this acquisition, we extend the analytics and market content within our products, while bringing more than 5,500 additional suppliers into the fold. We believe this will increase the value of the solutions we offer for our product cost management and direct materials sourcing customers."

Financial terms of the transaction were not disclosed.

This is Agile's fifth acquisition in the past 12 months. The company has also managed to eke out purchases of Eigner, MS2, ProductFactory and oneREV on its road to better compete with the likes of SAP, MatrixOne and Dassault

"The acquisition of Tradec not only extends Agile's leadership position in product cost management, but solidifies Agile's role as PLM market consolidator," said Aberdeen Group analyst Tim Minahan. "Agile's product cost management solutions provide the requisite collaboration, costing and sourcing execution capabilities to enable manufacturers to align design and sourcing processes across multiple tiers of the supply chain to optimize product costs and drive innovation."

Shares of Agile stock rose 21 cents on the news to end the day Wednesday at $9.73.