Dive Brief:
- Honeywell completed its $1.5 billion acquisition of Intelligrated on Tuesday, bringing the manufacturer supply chain and logistics solutions including robotics, automated storage and retrieval systems.
- Intelligrated's automated material handling solutions will complement Honeywell's data capture and workflow performance technology, the company said.
- Honeywell recently had been close to acquiring JDA Software Group, but JDA's majority shareholder instead accepted a financing deal that will give the Blackstone Group a 40% stake in the supply chain management software company.
Dive Insight:
Honeywell's acquisition of Intelligrated, and its attempted acquisition of JDA Software, shows the manufacturer is looking at supply chain solutions to increase its competitiveness.
The deal supports a booming global e-commerce fulfillment industry, allowing distribution centers and supply chain firms to harness the "industrial Internet of Things," Honeywell said in a press release. Honeywell's automated and control solutions division raised $14.1 billion in sales last year.
In addition, the company aims to take advantage of a growing industrial need for supply chain solutions: A recent JDA/SC Digest survey suggests nearly 80% of organizations are looking to invest in supply chain digitization technologies within the next three years.
