Infor, a supplier of ERP software, today announced its deal to acquire GT Nexus, a cloud-based global commerce platform, for $675 million.
The ERP vendor, which competes with SAP and others, said cloud services are replacing traditional ERP systems.
The company cited the following reasons for spending the huge money to grab GT Nexus.
First, Infor and GT Nexus will provide better visibility into supply chains to manage production and monitor goods in transit and at rest.
Second, GT Nexus already supplies commerce platform to nearly 25,000 businesses including six of the top 10 logistics service providers and 30 financial institutions. GT Nexus customers include adidas Group, Caterpillar, Columbia Sportswear, DHL, Home Depot, Levi Strauss & Co., Maersk, Pfizer, Procter & Gamble, and UPS.
Charles Phillips, CEO of Infor said: “In a complex supply chain, all partners need to know what was ordered, when it was built, where it is in transit, if the order has changed, and has it cleared customs. Specialization and speed are moving the future of manufacturing into the commerce cloud.”
Third, GT Nexus becomes the order management system for the entire network by managing the master record of the order across multiple partners. GT Nexus facilitates more than $20 billion in payments between buyers and their suppliers in 90 countries and in 8 currencies.
Fourth, Infor has more than 3,200 fashion and retail customers, many of which use GT Nexus. The addition of Infor CloudSuite technology to the GT Nexus network will enable businesses to integrate merchandising, marketing, and demand data instead of extrapolated forecasts for improved sales, operations, and production planning.
Fifth, Infor will enable the social collaboration for unstructured processes within the supply chain on GT Nexus through Infor Ming.le. Retailers and manufacturers will also be able to leverage Infor Rhythm, Infor’s omnichannel e-commerce platform for engagement and direct order flow into the commerce cloud.
Sixth, the combination of Infor CloudSuite applications and GT Nexus will represent the future of multi-enterprise manufacturing and commerce. A cloud-based manufacturing and logistics application will easily integrate manufacturing locations around the world to share financial, order, and shipment data.