3M announced last week that it was selling its HighJump Software unit, a provider of supply chain software, to Battery Ventures, a venture capital and private equity firm.

The supply chain technology world was surprised in early 2004 when global manufacturing giant 3M announced it was purchasing HighJump and entering the supply chain software market. Despite predictions by some that the set-up would not work, HighJump thrived under the 3M banner, enjoying substantial sales growth over the next few years. The company also leveraged 3M to expand its global footprint and its solution set in the Manufacturing Execution System (MES) space, in addition to its existing software offerings in such areas as Warehouse and Transportation Management Systems.

More recently, 3M has apparently decided to focus its supply chain software strategies in the area of global “track and trace,” a visibility-oriented solution. As a result, the company looked for a better home for HighJump.

"We have been evaluating the supply chain software market for over 18 months, and believe HighJump Software represents the best-in-class solution," said Jesse Feldman, senior associate, Battery Ventures. "Moving forward, the company provides us with an excellent platform to grow both organically and through acquisition."

Dwight Klappich, a Vice President of Research at Garter who follows the supply chain software market, had this to say on the move: “While it was a bit of an odd marriage, the original 3M acquisition was good for HighJump, allowing it to make the necessary investments to compete in the mature, though evolving, WMS market and it leaves HighJump in a stronger market position as a result.”

He also told SCDigest that “The spin off now gives HighJump more room to expand its wings without some of the constraints that being under a corporate giant can place on a specialty software firm like HighJump.”