ProfitLogic Has Been Acquired by Oracle

ProfitLogic Profile

  • ProfitLogic, a privately-held company, was a leading provider of software and analytical consulting services, providing retailers detailed insight into customer demand, and suggested pricing actions to maximize profitability, delivering margin improvements on the order of 5%–15%
  • The company's customers included a number of leading retailers, such as Ann Taylor, Bloomingdales, JC Penney, Marshall Fields, Nordstrom, Reitmans, ShopKo Stores and Toys R Us
  • Based in Cambridge, Massachusetts, ProfitLogic employed about 250 at the time of the company’s acquisition
  • The company was backed by Bain Capital, Battery Ventures, General Catalyst and Venrock

Oracle Profile

  • Oracle (NASDAQ: ORCL) develops, manufactures, markets, distributes and services database and middleware software as well as applications software designed to help companies manage and grow their business operations
  • With over 84,000 employees at the time of the acquisition and the world’s largest corporations as customers, Oracle is the world’s largest enterprise software company
  • Oracle uses an active acquisition program as a major component of the company’s corporate growth strategy

Transaction Notes

  • The acquisition of ProfitLogic by Oracle was announced on July 5, 2005; financial terms were not disclosed
  • The combination of Oracle, Retek and ProfitLogic created the first complete insight-driven enterprise platform for retailers
  • Existing automation software from Oracle and Retek was subsequently infused with insight from the ProfitLogic software, building on a shared vision that customer insight should be the foundation for all decisions a retailer makes
  • This acquisition enabled Oracle to accelerate ProfitLogic’s ability to drive dramatic financial improvement for a larger set of leading retailers, worldwide – Oracle had over 1,900 retailer customers at the time of the acquisition
  • Shea & Company served as the exclusive financial advisor to ProfitLogic on the company’s sale to Oracle
Financial terms not disclosed
has been acquired by
Shea & Company served as the exclusive financial advisor to ProfitLogic's Board of Directors and management