Körber buys majority stake in DMLogic

German technology provider Körber AG has bought a majority stake in logistics software provider DMLogic LLC in a bid to expand the European firm's presence in the U.S. systems integration sector.

The move was designed to broaden the footprint of Körber's Logistics Systems GmbH division, a provider of digital solutions for the smart factory (production logistics), the warehouse, e-commerce, and management of the entire supply chain, the company said.

Körber did not disclose specifics of the deal. Pittsburgh-based DMLogic will continue to operate under its own brand as an independent entity under the Körber umbrella, Bob Kennedy, DMLogic's vice president of business development, said in an interview.

Körber has $2.9 billion in annual revenue and employs more than 11,000 people worldwide. It has a strong position in Europe but has been quiet in a U.S. systems integration sector, which is dominated by companies such as Dematic Corp., Intelligrated Systems Inc., Toyota Advanced Logistics Solutions (TALS), Knapp AG, and Swisslog, Kennedy said.

"They want to have a bigger presence here, to do more business in the U.S., and we're happy to help them," Kennedy said. "The one thing they want to get out of us is a local presence for service and support."

The deal is the second recent acquisition of a U.S. company by Körber, which in January bought the Fargo, N.D.-based automated packaging equipment provider Fargo Automation Inc. in a bid to expand its pharmaceutical and biopharmaceutical business lines.

"The DMLogic team ideally expands our [logistics] business area with excellent expertise and an outstanding reputation on the U.S. market. Together we will further expand the software portfolio and our market presence in the U.S.," Hubert Kloss, CEO of Körber Logistics Systems, said in a statement.

Customers who currently use DMLogic products for warehouse management and design will see no immediate change in the firm, Kennedy said. However, as the companies continue to integrate together, DMLogic will be able to sell an array of items from Körber's portfolio, such as manufacturing and distribution automation, and supply chain execution software products from Körber's Inconso AG division, he said.