Why Sterling? Think Nistevo AND Yantra.
Here is another acquisition that indicates that consolidation in the SCM market is gathering pace. Sterling intends to blend Nistevo with Yantra, a provider of software for distributed order management and warehouse management. Some of you will remember that Sterling acquired Yantra last year for $170M. Yantra’s core strength was in the retail space, linking retailers with suppliers and third-party logistics providers (3PLs).
With the Nistevo deal, Sterling now has an attractive offering for retailers, suppliers, and 3PLs. Better yet, in the future all of the software will be supported as software-as-a-service (SaaS), an attractive option for companies looking for lower cost implementation options. (note: the software is also available for deployment behind a firewall).
Conceptually, the Nistevo/Yantra pairing fits nicely with Sterling’s value-added network (VAN) business, which has long provided services on a pay-as-you-go model. Sterling intends to use its VAN to extend the reach of Nistevo and Yantra, especially to midsize business. Today, Sterling’s network has 30,000 customers, with most under $250M in annual revenue.
Click the link in the title of this post for a run-down on this deal.
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