Looking to bolster its clout in the supply chain applications market, ILOG, of Mountain View, Calif., and Paris, has decided to take over LogicTools, a provider of strategic supply chain planning solutions.

LogicTools, Chicago, has clearly established itself as a major player in supply chain network design and planning. It is also active in inventory optimization.

The acquisition is expected to add LogicTools' more than 200 customers to ILOG's installed base of Global 500 companies in the consumer goods, retail and manufacturing markets. In addition, ILOG will acquire LogicTools' intellectual property, allowing the company to offer products and services that complement ILOG's recently introduced planning and scheduling applications. As an ILOG independent software vendor partner, LogicTools has used ILOG's optimization technology in its products for more than five years.

As part of the acquisition, ILOG will gain a research and development site in Eugene, Oregon, and an office in Chicago. LogicTools' chairman and co-founder David Simchi-Levi will stay on as a consultant to ILOG. Co-founder Edith Simchi-Levi will continue as vice president of operations during the transition, after which she will assume a supply chain marketing role within ILOG.

"Given ILOG's leadership position in resource optimization products and its long history of success in the supply chain market as a strategic technology provider to both corporations and software companies, including LogicTools, I can't think of a better company for our customers and employees to join," says David Simchi-Levi. "ILOG and LogicTools' complementary solutions will bring to the market the most advanced supply chain optimization capabilities."

"This acquisition will significantly strengthen one of the three pillars of our strategy-supply chain planning and scheduling applications," says ILOG Chairman and CEO Pierre Haren. "The complexity and risks in the supply chain market have increased over time, requiring advanced decision support tools. The acquisition of LogicTools underscores our commitment to address the new challenges faced by global supply chains, and positions us to become a leading provider of supply chain analytics applications."

Visit www.ilog.com and www.logic-tools.com.