News Comes Just Weeks after Investor Group Calls on Company to Seek a Buyer

After rumors in early December that it was seeking a buyer, and an activists investment firm calling on the company to find a buyer, software maker Logility Supply Chain Solutions has announced it is being acquired by Aptean, vendor of ERP and other enterprise applications, including some existing supply chain solutions.

At the time of deal announcement, publicly trade Logility was trading at around $11.30 per share. Under the terms of the acquisition, Aptean will pay Logility shareholders $14.30 per share, or a premium of about 26%.

Supply Chain Digest Says... days later came the report from Reuters that Logility was working with investment firm Lazard to gauge takeover interest from potential buyers. What do you say? Click here to send us your comments   Click here to see reader feedback

It will be an all-cash deal for the Atlanta-based company.
Unlike Logility, Aptean is privately held. Its investors include TA Associates, Insight Partners, Charlesbank Capital Partners, and Clearlake Capital Group.

It appears the company will remain privately held.

Logility has over 500 customers in 80 countries. It had about $102 million in revenue in its fiscal year ending last April, down from $108 million in 2023. It had net income in fiscal 2024 of about $9.6 million.

Logility had a market cap of about $400 million at the time of the announcement.

Logility has a wide variety of supply chain solutions, but historically has been most known for it’s demand and supply planning software, including Sales &Operations Planning.

More recently, like most other software companies it has been focused on adding AI to its solutions, adopting an “AI first” posture in development and its go-to-market strategies.

For about 30 years, Logility operated as division of parent American Software, which once was a leader in manufacturing software but saw its success start to ebb in the 2000s, to a state of extinction not long after.

In October 2023, the whole company was renamed Logility Supply Chain Solutions, and its stock symbol also changed from AMSOFT to LGTY.

Then in December, 2717 Partners LP, a San Francisco-based investment firm, that sent a public letter to the company’s board of directors, calling for it “to explore strategic alternatives, including a sale of Logility.”

Logility had no comment on that move.

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However, days later came the report from Reuters that Logility was working with investment firm Lazard to gauge takeover interest from potential buyers.

Just weeks later, the deal with Aptean is announced.

“Aptean’s acquisition of Logility represents a new and exciting chapter for our Company,” said Allan Dow, President & CEO of Logility. “Logility’s mission is to help organizations build sustainable, profitable supply chains that improve people’s lives and the world we live in. We look forward to continuing to provide AI‑first solutions to our strong client base alongside Aptean, which has an impressive track record of helping manufacturers and distributors thrive. We believe this transaction is a great outcome for our clients, Company and shareholders and will help Logility achieve its long-term potential.”

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