SAP acquires retail software vendor

In a move that further highlights the increasing friction between Oracle and SAP in the retail market, SAP announced plans to acquire Khimetrics Inc., a retail software vendor with expertise in profitability forecasts and pricing strategies.

Scottsdale, Ariz.-based Khimetrics Inc. makes demand analysis software for retail, consumer-packaged goods and financial services firms. The firm has the most experience in pricing optimization for grocery stores and food markets. Khimetrics' analytics software uses internal and external customer data to produce reports for forecasts, promotions and pricing.

Financial terms of the transaction were not disclosed. The acquisition is expected to be completed in January 2006 and is subject to regulatory approval.

The merger is on the heels of SAP rival Oracle Corp.'s successful July acquisition of ProfitLogic, which produces similar demand intelligence software for pricing, markdown and merchandising analysis. ProfitLogic's expertise has been mainly with clothing retailers.