Dematic acquires global logistics automation software specialist

Dematic today announced that its parent company KION GROUP AG has completed the acquisition of Digital Applications International Limited (DAI), a UK-based software company specializing in logistics automation solutions, on its behalf. Valued at around €120 million, the transaction is KION’s largest investment since acquiring Dematic in 2016.

The addition of DAI significantly expands Dematic’s intralogistics software offerings to support the movement, storage and distribution of goods through the entire supply chain. DAI’s core product is a warehouse management system (WMS) that broadens the capabilities of Dematic iQ automation by allowing a wider range of applications — from primarily manual operations to the fully automated supply chain ecosystems. The combined offerings will be especially attractive to new customers who desire a single software platform and after-market customers looking to add on to existing software.

“This deal marks a significant moment in time for Dematic and for intralogistics as a whole,” said Hasan Dandashly, CEO, Dematic. “Software is no longer something extra to be added to a solution — it is a fundamental, inextricable part of all solutions. And now with this combined software portfolio we can provide our customers with entirely new business models to make them more competitive and power the future of commerce.”

With full WMS capabilities, Dematic will be able to offer an entry point for customers early in their automation journey and a powerful add-on for more experienced customers. The acquisition is an essential step to support the digital transformation to smart supply chains and consumer-demand driven urban strategies.

In addition, the acquisition will enable Dematic to:

—Extend its software portfolio and systems engineering capabilities to meet future challenges and deliver advanced intralogistics globally

—Respond to challenges presented by the accelerated growth of e-commerce and supply chain digitalization

—Continue to lead in new software innovations that create significant competitive advantages for our customers

—Provide full support both inside the four walls of a facility and throughout the complete supply chain ecosystem (transportation, labor, inventory, order management)

In the 2019 financial year, DAI’s preliminary revenue was equivalent to approximately €40 million. With offices in London (UK), Manchester (UK), Aberdeen (UK), Basel (Switzerland), and Shanghai (China), DAI has customer installations around the globe, many of which have been close collaborative efforts with Dematic.

“Dematic and DAI have been partners for many years sharing market leadership and software capabilities. Combining the companies will only accelerate the benefit to customers.” said Dr. Andrew Kisiel, Founder & Chairman of DAI.

This next phase will be a continuation of this partnership. The acquisition includes a long-term program for retaining and growing DAI’s workforce of approximately 240 employees. The DAI team of proven intralogistics automation and supply chain experts will perfectly complement Dematic’s existing software expertise.