Supply chain management firm RedPrairie Corp has entered into a definitive agreement to buy Alta A/A, a Danish provider of event management software, to strengthen its offerings in the automotive sector.
The financial terms of the deal have not been disclosed. Alta is heavily backed by venture capital, including British firm 3i, and has attracted over 15m Euros ($18m) in investment. Alta’s market valuation is estimated at around $50m.
The integration of Alta’s PowerB2O supply chain execution software provide RedPrairie with solid build to order [B2O] capabilities for manufacturing, particularly for the automotive component manufacturing sector. PowerB2O helps manufacturers tailor their products, so their customers receive exactly the specially designed car or computer they ordered.
The software works by managing unique process flows, using graphical displays to depict the sequencing process for each customized product. The software automatically optimizes the process throughput times.
The capabilities will nicely complement RedPrairie’s existing sequencing competencies to help automobile manufacturers roll custom-built order through car assembly lines much quicker.
The automobile manufacturing industry is shifting slowly towards custom build, which requires software to sequence the customer specified parts required to assemble a vehicle.
‘Build to Order’ is fast becoming the only viable way the automotive industry can economically manufacture vehicles, notes John Jazwiec, who heads up Waukesha, Wisconsin-based RedPrairie.
Alta’s B2O solution is already used extensively in over fifty car component manufacturing sites in Europe, the US, South America and China. Customers include Volvo, Audi, BMW, GM Opel and Vauxhall, Skoda, and Volkswagen.
Copenhagen-based Alta was founded in 1992 and maintains a Kiev, Ukraine-based development facility which RedPrairie says it will use to expand into Eastern Europe.