Zabra Technology Corporation announced that it intends to acquire Israeli startup Profitect, which develops analytical software for the retail market. The product of Profitect is capable of tracking and identifying inventory loss in stores. The amount of the purchase was not disclosed but sources close to the company estimate the value of the deal at $100 million.
Profitect was founded in 2007 by David Even Haim and Omer Matityahu, both founders are not active in the company today. Based in Boston ther company managed by Guy Yehiav.
Since its establishment, Profitect has raised $22 million. The returns to investors from the deal is significant. The two leading investors in the company were the Cedar Fund, which sold its holdings in the company to the US fund BVG, and the Genesis Fund recently sold its portfolio to Insight. This is the first realization of Insight from Genesis’s portfolio.
Profitect developed a Big Data system that can connect both to the large retail inventory records and to the stores themselves, and identify irregularities.
Large retail corporations use analysts who manually compare data to find deviations and detect inventory loss. Profitect’s system can do this automatically, and even indicate the cause of the loss – whether it is improper conduct in a particular branch or with a particular supplier. Based on the information provided by the system, retailers are able to act to solve the inventory shortage. The company has a large customer list including the American pharma chain Walgreens, Stop & Shop, and large retail chains England.
Zebra develops hardware products for retail and is traded on Nasdaq at a company value of $9.35 billion. One of its motives for the acquisition was to strengthen its software capabilities. Since all of Profitect’s employees are expected to join Zebra, the corporation also acquiring their knowledge and capabilities to continue the development of its data platform – Savannah – which provides retailers with insight into real-time data from their devices and sensors.