Exhibit 99.1
Logility Acquires Demand Management, Inc.
Significantly Strengthens Supply Chain Planning Market Position for Small and
Midsize Businesses (SMB); Extends Worldwide Distribution Channel; and
Increases Customer Base to Over 1100
ATLANTA and ST. LOUIS, Oct. 1 /PRNewswire-FirstCall/ -- Logility, Inc.
(Nasdaq: LGTY), a leading supplier of collaborative solutions to optimize the
supply chain, today announced its acquisition of certain assets and the
distribution channel of privately-held Demand Management, Inc., a St. Louis-
based provider of supply chain planning systems marketed under the Demand
Solutions(R) brand, for $9.5 million in cash. Under the terms of the
agreement, Demand Management will immediately become a wholly-owned subsidiary
of Logility, and Mike Campbell, president and CEO of Demand Management, will
remain with the company as president of the new subsidiary. The acquisition is
expected to be accretive to Logility's earnings and cash flow within the next
12 months, and is expected to contribute approximately $10 million in annual
revenue, with 50% as a recurring component.
The acquisition provides more than 800 active customers in the growing
small and midsize business (SMB) market, which brings the Logility customer
base to approximately 1,100 and gives Logility what is believed to be the
largest installed base of supply chain planning customers among application
software vendors. Logility will continue to sell Demand Solutions as a
separate product line to the SMB market through Demand Management's existing
value-added reseller distribution network, which currently serves customers in
more than 70 countries. Logility will also continue to offer the Logility
Voyager Solutions(TM) suite to its traditional target market of upper-midsize
to Fortune 1000 companies with distributive-intensive supply chains.
"With this acquisition of Demand Management, we see tremendous potential
to increase the intrinsic value of Logility by leveraging our supply chain
knowledge and extending our reach into an under-served market segment of SMB
companies," said Mike Edenfield, Logility president and CEO. "This move gives
us access to a large, satisfied customer base and provides an immediate
opportunity to expand our worldwide sales and implementation resources. We
believe Logility is the only vendor that can meet the supply chain planning
needs of the SMB market as well as serve the more complex requirements of
large and Fortune 1000 businesses."
Some of the unique assets that Logility acquires through this transaction
include:
Distribution Channel. Demand Management has a worldwide value-added
reseller (VAR) network of 23 organizations with 67 sales, implementation
and support resources. This network will continue to sell Demand Solutions
products, and Logility plans to introduce components of the Logility
Voyager Solutions suite into appropriate areas of this proven distribution
channel.
Customer Base. Demand Management has approximately 800 active customers in
over 70 countries in consumer goods, food and beverage, apparel, life
sciences, service parts and retail industries. The VAR channel and Demand
Management subsidiary of Logility will continue to support these loyal
Demand Solutions customers.
Technology. The Demand Solution products are designed for SMB companies
and include supply chain forecasting, demand planning, inventory planning
and replenishment planning. The Demand Solution Stores product enables
store-level forecast modeling and replenishment capabilities for
retailers.
"Demand Management customers and employees are now allied with a larger,
profitable company with a strong balance sheet, providing additional capital
for growth," said Mike Campbell, president of Demand Management. "Customers
now have access to Logility's comprehensive portfolio of supply chain
solutions and services, which can help drive additional business performance
improvements."
Mr. Edenfield continued, "There are three primary benefits for Demand
Solutions customers. First, Logility is financially strong, organizationally
stable and has extensive experience in developing and supporting supply chain
management applications. Second, Logility plans to increase the research and
development investment in the Demand Solutions products to better support
existing and new customers. Third, Logility Voyager Solutions give Demand
Solutions customers access to supply chain products designed to solve complex
problems in demand, inventory and replenishment planning; manufacturing
planning, supply and global sourcing optimization; transportation planning and
management; warehouse management, and collaborative planning with customers
and suppliers. We believe this combination brings substantial benefits to
Demand Solutions customers and significantly expands the opportunity for the
entire Logility organization."
Logility does not anticipate an impact on its existing customers or its
Logility Voyager Solution suite.
About Demand Management, Inc.
Demand Management, headquartered in St. Louis, MO., with a distribution
network in Europe, Africa, and Asia-Pacific, provides supply chain
forecasting, demand planning and inventory and replenishment systems under the
Demand Solutions brand to small- and medium-sized businesses. Since 1985
Demand Solutions products have been reliable and cost-effective solutions for
leveraging supply-chain technology to improve bottom-line results, from
manufacturing to distribution and retail. To learn more
visit http://www.demandsolutions.com .
About Logility
Logility is a leading provider of collaborative solutions to optimize the
supply chain. Logility Voyager Solutions enable networks of trading partners
including suppliers, manufacturers, distributors and retailers to collaborate,
integrate and synchronize their planning, production, warehouse and
transportation operations. Logility customers have realized substantial
bottom-line results in record time. Logility is proud to serve such customers
as Bissell, Huhtamaki UK, Katun Corporation, McCain Foods, Mill's Pride,
Pernod Ricard, Rand McNally, Sigma Aldrich, VF Corporation and xpedx.
Logility is a majority owned subsidiary of American Software (Nasdaq: AMSWA).
For more information about Logility, call 1-800-762-5207 or
visit http://www.logility.com .
Forward-Looking Statements
This press release contains forward-looking statements that are subject to
substantial risks and uncertainties. There are a number of factors that could
cause actual results to differ materially from those anticipated by statements
made herein. These factors include, but are not limited to, changes in
general economic conditions, technology and the market for the Company's
products and services including economic conditions within the e-commerce
markets; the timely availability and market acceptance of these products and
services; the effect of competitive products and pricing; risk and
uncertainties associated with acquisitions of businesses and products and
their assimilation into the business of the Company; the uncertainty of the
viability and effectiveness of strategic alliances; and the irregular pattern
of the Company's revenues. For further information about risks the Company
could experience as well as other information, please refer to the Company's
Form 10-K for the year ended April 30, 2004 and other reports and documents
subsequently filed with the Securities and Exchange Commission. For more
information about the Company, contact Vincent C. Klinges, Chief Financial
Officer, Logility, Inc., 470 East Paces Ferry Rd., Atlanta, GA 30305, (404)
261-9777. FAX: (404) 264-5206 INTERNET: http://www.logility.com or E-mail:
asklogility@logility.com .
SOURCE Logility, Inc.
-0- 10/01/2004
/CONTACT: Vincent C. Klinges, Chief Financial Officer of Logility, Inc.,
+1-404-264-5477/
/Company News On-Call: http://www.prnewswire.com/comp/120967.html/
/Web site: http://www.logility.com
http://www.demandsolutions.com /
(LGTY AMSWA)
CO: Logility, Inc.; Demand Management, Inc.
ST: Georgia, Missouri
IN: CPR MLM STW NET
SU: TNM