Supply chain execution vendor HighJump Software announced today that it would acquire True Commerce, Inc., an electronic data interchange (EDI) specialist, in a move that makes good on the recent assertion by HighJump’s CEO that the company’s financial backer would “enjoy putting more capital to work with HighJump.”
The move would add a new wrinkle to HighJump‘s technology portfolio, which includes supply chain execution applications such as warehouse management systems, transportation management systems, and manufacturing execution systems (MES). True Commerce, like its suitor a private company, specializes in outfitting small to mid-size manufacturers and other companies with a secure network for exchanging business data with partners, customers, and suppliers. It acts as a messaging engine that, for instance, extracts a new purchase order from an ERP system, translates it into a standard message, and notifies a supplier of the order.
Approximately 90% of HighJump’s customers use some form of EDI to exchange shipping notices, purchase orders, and other messages with their trading partners, said Chad Collins, the company’s vice president of marketing and strategy, in an interview. Until now, they did not have the option of using HighJump technology to do so. With the pending acquisition of True Commerce — HighJump officials expect the transaction to close in 10 days — the company will now offer EDI as part of a full line-up of supply chain execution tools, according to Collins.
Behind the deal is HighJump’s owner, private equity outfit Battery Ventures, which bought the company from diversified manufacturer 3M two years ago and recently installed a new CEO at the helm. In an interview with Managing Automation this summer, just weeks into his new post as HighJump’s chief executive, Russell Fleischer foreshadowed the deal-making, saying the company would look to grow through acquisition as opportunities arose.