In a vertical move to broaden its offerings for customers in the retail sector, German business software vendor SAP has agreed to acquire Retek, a developer of retail management software.
Under the agreement announced Monday, SAP will pay $496 million in cash for the U.S. software company, based in Minneapolis.
The deal, which has been accepted by Retek's management board, must still be approved by regulators.
Retek offers software for a range of retail operations, including SCM (supply chain management), multichannel retailing and merchandise operations management. The company has more than 200 customers in more than 20 countries.
The acquisition will help SAP provide a comprehensive software system that extends from point of sale through the entire retail supply chain, the Walldorf, Germany, company said.
In an interview last month, SAP Chief Executive Officer Henning Kagermann said the company will continue to make strategic investments in companies to fill some technology gaps. It's important, he said, that SAP generates innovative add-on products around its core business management software.