Manugistics Group, Inc.
has reached a preliminary agreement with privately-held SpaceWorks, Inc., which ceased operations in May, to acquire SpaceWorks’ intellectual property and certain of its assets for an undisclosed sum. Manugistics intends to combine its Web-based supply chain management solutions with SpaceWorks’ Web-based order-management technology, including the SpaceWorks best-of-breed order transaction engine.
The acquisition is subject to certain conditions, including completion of satisfactory due diligence, execution of a definitive agreement, and approvals of the companies’ Boards of Directors.
Prior to completion of the acquisition, Manugistics intends to provide certain support and maintenance services to licensees of SpaceWorks technology, and may enter into further interim agreements, pending closing, with SpaceWorks regarding the servicing, sales and development of SpaceWorks technology.
Founded in 1993, SpaceWorks — whose clients included Avaya, BF Goodrich, GE Aircraft Engines, and Maytag Corporation, among others — provided software solutions which helped companies to automate complex order-related activities, including order submission, verification of inventory availability and account status, order tracking, product catalog searches, and returns while enabling the seller to better allocate inventory, fill orders and ship products directly to the customer.
“The acquisition of SpaceWorks’ technology is a natural extension of Manugistics solutions,” said Greg Owens, the Rockville, Md.-based Manugistics chairman and chief executive officer. “This deal would bring together Manugistics’ strengths in supply chain and pricing optimization with SpaceWorks’ capabilities in real-time order execution and management — enhancing our clients’ ability to drive profitability and visibility through the order lifecycle.”
David MacSwain, former president and chief executive officer of SpaceWorks added, “We believe that a relationship with Manugistics, a company with a proven track record of technological expertise and excellence in client services, would deliver tremendous value to SpaceWorks clients.”
Manugistics list of clients includes industry leaders such as 3Com, Amazon.com, Boeing, BP, Brown & Williamson, Caterpillar, Cisco Systems, Coca-Cola Bottling, Compaq, DuPont, eConnections, Ford, General Electric, Harley-Davidson, Hormel, Levi Strauss & Co., Marriott, Nestle, Texas Instruments, Timberland, Unilever, and United Airlines.