Inside Logistics

Zebra acquiring Profitect

Prescriptive analytics for the retail and consumer packaged goods to bolster Zebra's data platform


May 20, 2019
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LINCOLNSHIRE, Ill. & BURLINGTON, Mass. – Zebra Technologies Corporation intends to acquire Profitect Inc., a privately held provider of prescriptive analytics for the retail and consumer packaged goods (CPG) industries.

Using machine learning and prescriptive analytics, Profitect’s solution identifies opportunities to improve sales and margin using data from across the value chain for improving inventory and pricing accuracy, out of stocks, supply chain inefficiency, unsellable merchandise, and assortment discrepancies.

The solution identifies a potential opportunity and can generate suggested actions, sending them directly to a worker’s mobile device, providing step-by-step instructions for resolution. By enabling users to understand and act on data, Profitect customers typically realize sales lift, as well as margin and labor productivity improvement enabling a better overall consumer experience.

Zebra will also use the investment to accelerate the development of its Savanna data platform through the acquisition of Profitect’s technology, talent, and skillsets. Combining the real-time data that Zebra solutions capture, with Profitect’s access to operational data, machine learning, and prescriptive analytics, Zebra will work with its partners to empower front-line workers even more – across all verticals – with the insights they need to make better, faster, smarter decisions.

“The acquisition of Profitect expands our relevancy deeper and wider in global retail operations while advancing our software capabilities to make our Enterprise Asset Intelligence vision even more accessible,” said Anders Gustafsson, CEO of Zebra Technologies.

“We have had a strong relationship with Profitect for the past five years through Zebra Ventures, and we are excited to take our strategic investment to the next level by welcoming the Profitect team to the Zebra family.”

Zebra expects to fund the acquisition of Profitect with a combination of cash on hand along with fully committed financing available under its credit facility. The transaction is subject to customary closing conditions and is expected to close in the second quarter of 2019. The transaction is expected to be immaterial to sales and profitability in the near term. Financial terms of the acquisition are not being disclosed.