Warehouse management system (WMS) software vendor Softeon will be acquired by the Swedish enterprise resource planning (ERP) software vendor IFS in a move that IFS said would create an integrated platform that connects manufacturing operations seamlessly with intelligent warehouse execution.
IFS said it made the move as global enterprises face mounting pressure to modernize supply chains, rebuild aging infrastructure, and navigate persistent labor shortages. Those factors make the connection between production and distribution more critical than ever, prompting IFS to extend its industrial artificial intelligence (AI) capabilities into the $8.6 billion warehouse management systems market, the company said.
Specifically, IFS and Softeon say they will apply Industrial AI directly into warehouse operations, challenging a traditional WMS segment where legacy systems rely on manual processes and paper-based workflows. Their combined solution will embed agentic AI and physical AI orchestration into every aspect of warehouse management, from fulfillment and labor optimization to real-time yard visibility and automation integration, the two companies said.
Reston, Virginia-based Softeon provides cloud-native warehouse management, warehouse execution, and distributed order management solutions. Its customers include Sears Homes Services, Sony DADC, and DB Schenker Logistics.
Terms of the deal were not disclosed. But IFS purchased Softeon in part from Warburg Pincus, a private equity firm that had first invested in a minority stake of the software firm in 2019. In an announcement posted to LinkedIn today, Warburg Pincus said that over the course of that period, Softeon’s architecture was modernized, resulting in the company’s first outbound go-to-market engine and channel partnership strategy. “Our investment enabled Softeon to expand its teams, broaden its footprint, and drive product innovation to set new standards in logistics. We look forward to following the company’s next chapter,” said Devin Grossman, Vice President, Warburg Pincus.
IFS said the acquisition would deliver immediate value for its customers, which operate in sectors including aerospace and defense, energy, engineering and construction, manufacturing, and transport.
“The warehouse is the next frontier for Industrial AI,” Mark Moffat, CEO of IFS, said in a release. “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. Softeon brings proven warehouse expertise to IFS, and we deliver next-generation AI, robotics orchestration, and deep industrial domain knowledge. Together, we’re redefining what’s possible when you apply Industrial AI where it matters most: on the warehouse floor, in real-time, with measurable impact on throughput, accuracy, and workforce capacity.”
Editor’s note: This story was revised on December 17 to include information about the business relationship between Softeon and Warburg Pincus.
