IFS, an industrial artificial intelligence software provider, said it has entered into a definitive agreement to acquire Softeon, a cloud-native warehouse management and execution software company, expanding IFS’s footprint in warehouse operations.
The transaction is subject to regulatory approvals and is expected to close in the first quarter. Financial terms were not disclosed.
Softeon provides warehouse management systems (WMS), warehouse execution systems (WES) and distributed order management software used in complex fulfillment environments. Its customers include Sears Home Services, Sony DADC and DB Schenker Logistics.
IFS said the acquisition extends its industrial AI platform into warehouse operations, connecting manufacturing, warehouse execution, and supply chain processes within a single system. The move comes as manufacturers and asset-intensive enterprises work to modernize supply chains and address labor constraints.
“The warehouse is the next frontier for industrial AI,” IFS Chief Executive Officer Mark Moffat said in a statement. “As we work with increasingly complex global manufacturers and asset-intensive enterprises, warehouse operations must become as intelligent and autonomous as the production lines they support.”
IFS said Softeon’s cloud-native software and existing integrations with robotics, voice and automation technologies will complement IFS’s industrial software portfolio, which includes manufacturing, asset management, and field service applications. The combined platform is intended to embed artificial intelligence directly into warehouse workflows, including fulfillment, labor optimization, and inventory management.
Softeon CEO Jim Hoefflin said the acquisition will allow the company to accelerate innovation while maintaining its focus on warehouse operations. “Our customers have been asking for advanced AI capabilities, seamless integration with robotics, and stronger connection between warehouse operations and broader supply chain processes,” Hoefflin said.
IFS estimates the global warehouse management systems market at $8.6 billion and said the acquisition positions the company to compete more directly in that segment. The company serves customers across aerospace and defense, energy, engineering and construction, manufacturing, and transportation industries.
IFS was founded in 1983 and employs more than 7,000 people in 80 countries. Softeon has focused exclusively on warehouse and fulfillment software for more than two decades.
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