Manugistics Group Inc., an inventory management firm based in Rockville, said yesterday that it has agreed to buy Tyecin Systems Inc. in a stock acquisition valued at approximately $9.5 million.
The deal has been approved by both firms' directors and is effective immediately.
Tyecin, based in Los Altos, Calif., makes software designed to help semiconductor makers plan manufacturing operations. Its client lists include blue-chip names such as International Business Machines Corp., Hitachi Ltd. and Texas Instruments Inc.
The Tyecin acquisition is intended to expand the market for Manugistics' supply-chain software.
"Manugistics is trying to basically round out its product line," said Bert Hochfeld, an analyst at Josephthal and Co. in New York. "This broadens the number of products that it has."
Tom Young, Manugistics' vice president of product marketing, said high-tech firms are a promising market for inventory management products and services. "We see a tremendous potential in these companies because the pressures they're feeling to be much more effective in the supply chain are just dramatic," he said.
Young also said there will be no job losses as a result of the merger. Manugistics has 1,300 employees overall, about 400 in Maryland. Tyecin has 50 employees.
The Tyecin name no longer exists with the merger. Manugistics said the two companies are already offering a combined product.
The purchase of Tyecin is the latest episode in a busy few months for Manugistics. In February, the company agreed to buy Promira Software Inc., a Canadian software firm, in a deal valued at $68 million. In March, Manugistics' stock soared 40 percent in one day on the strength of a healthy fourth-quarter earnings report.
On May 22, disappointing first-quarter earnings reports caused the company's shares to plummet from $47.875 to $29.25, losing nearly half of their value.
The stock has not recovered. In trading yesterday, it fell $2.5938 to $25.875.
Pub Date: 6/02/98