AFS Technologies, a provider of enterprise software for food and beverage companies, announced that it has acquired business intelligence software provider IRM Corp. and Motek Information Systems, a maker of warehouse management systems.
IRM, which targets food, beverage, and CPG companies, offers on-demand as well as on-premise business intelligence, forecasting, and trade promotion management products, while Motek’s warehouse management technology, which utilizes voice recognition and wireless mobile data terminals, is used by manufacturers and processors, as well as third-party logistics providers, including Associated Growers, Federated Co-op, and Four Seasons Produce.
“The acquisition of Motek allows AFS to further enhance its … presence in the warehouse management and 3PL system space in the food and beverage channel,” said Kurien Jacob, AFS chief executive, in a statement.
AFS’ Advanced Enterprise software suite includes ERP, inventory replenishment, warehousing, sales and marketing, and related modules. The company also maintains a food service product information and recipe database, called PROFILE.
IRM’s products include Discovery System (BI and analytics); SolutionTabs (customized BI); Compass Forecast System (planning and forecasting); PromoAssist (trade spending and promotion management); TopSales (distributor shipment tracking); and BrandShare (vending market share analysis).
“Both [IRM and AFS] have experienced strong growth in the past by providing our respective customers with solutions in a modular fashion, addressing their needs,” Jacob said. “IRM adds to that concept in that any customer, irrespective of their main system, can deploy IRM solutions.”
Motek’s WMS product, called Priya, uses radio frequency-enabled mobile computers to control the operation of warehouses ranging in size from 100,000 square feet to 2 million square feet, and can support from 10 to 500 concurrent users, according to the company’s Web site.
“AFS’ acquisition of Motek helps us overcome the main objection we get during our sales process — that we are too small,” said Ann Price, Motek president and CEO, in a statement. “With the leadership position that AFS has in the food and beverage segment, this will no longer be a constraint.”
AFS claims approximately 250 current customers and, with the addition of IRM and Motek, will serve more than 750 across the manufacturing, processing, and distribution segments, the company said. The combined company will include approximately 150 employees, with headquarters in AFS’ Phoenix location. Additional offices will be located in California, Connecticut, Florida, Texas, and Bangalore, India.
AFS Chairman Walter Barandiaran said in a statement that IRM’s Dallas-based management team “will continue to manage the SaaS business for AFS and soon offer more integrated SaaS offerings to the industry.”
In related news, AFS said it had raised $38 million in support of the IRM and Motek acquisitions. Of that total, $13 million in equity financing came from CIBC Capital Partners and Ticonderoga Capital, in addition to $25 million obtained through Wells Fargo Foothill, AFS said. Although AFS did not divulge the price tag for Motek or IRM, in a statement the company said it would use the remainder of the raised capital “for possible further acquisitions.” AFS also said that Alexis Boyle, executive director of CIBC Capital Partners Venture Group, has joined the AFS board of directors. David Butler, president of Ticketmaster-Irvine, also joined the board.