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London Tech Week

Kinaxis acquires MPO at $45M for real-time execution of orders

Kinaxis-1-founder
Photo Credit: Kinaxis

Kinaxis, a supply chain management software provider, has acquired MPO, a European-based company that provides a unified global cloud-based SaaS platform for multi-party order, inventory, and transport orchestration. 

The acquisition

Kinaxis acquired all of MPO’s shares for approximately $45M in a deal that closed on August 15, 2022, consisting of approximately 75% cash and 25% equity consideration. The precise amount of equity considered will be determined by the level of achievement of certain revenue and execution goals in the near term.

The integration of MPO’s Multi Party Orchestration execution and Kinaxis Rapid Response planning will deliver a complete real-time picture of every order across the lifecycle, from planned commitment to ultimate delivery, the company said in a statement.

Planners will be able to react to transportation disruptions and dynamically respond, and logistics teams will be able to incorporate the strategic impacts of their execution activities rather than treating these areas as separate teams. For manufacturers, brand owners, and logistics service providers, this full digitisation will unlock supply chain agility and resiliency to improve the end-to-end customer experience, sustainability, and financial outcomes.

Future plans

MPO will continue to run as a separate business. For this acquisition, Kinaxis received financial advice only from Sampford Advisors. MPO had only Finch Corporate Strategy Services as advisors.

“Today’s more complex supply chain networks and higher customer expectations have shown the importance of outside-in thinking and improving the control of material in motion to accelerate and improve decision making. This acquisition will seamlessly activate supply chain concurrency from planning through last-mile execution,” said John Sicard, Kinaxis CEO. “We welcome the MPO team and their customers to the Kinaxis community. Uniting these two innovative platforms delivers end-to-end supply chain concurrency, visibility and knowledge across customers, suppliers, and the entire multienterprise business network.”

“MPO is to supply chain execution what Kinaxis is to supply chain planning – revolutionising the space by concurrently combining control and visibility of supply chain execution steps across business networks, into a unified cloud platform with one codebase, single user-interface and real-time optimisation in a way no other vendor in the market does,” said Martin Verwijmeren CEO, who co-founded MPO with Paul van Dongen, CTO.

The company was started in 1984 as Cadence Computer Corporation[4] by Duncan Klett and two other individuals. In June 2014, it went public. The Kanata neighbourhood of Ottawa, Ontario, Canada, is home to the supply chain management and sales and operation planning software company Kinaxis. Kinaxis primarily serves large, multinational corporations with subscription-based supply-chain management software. Ford, Cisco, Qualcomm, and Avaya are a few of the clients.

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