IFS, a global provider of enterprise software with extensive Industrial AI features, today announced it has entered into a definitive agreement to acquire Softeon, a provider of cloud-native warehouse management system (WMS), warehouse execution system (WES) and distributed order management (DOM) software solutions.
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2026. The announcement from the companies did not state the acquisition price or deal value. The companies explained the move will extend IFS’s Industrial AI capabilities into the $8.6 billion WMS software market, creating an integrated platform that connects manufacturing operations with intelligent warehouse execution.
As global enterprises face mounting pressure to modernize supply chains, rebuild aging infrastructure, and navigate persistent labor shortages, the connection between production and distribution has never been more critical, the companies explained. They added that Softeon’s WMS and WES capabilities will benefit IFS customers in complex industries where warehouse operations must match the precision and intelligence of their manufacturing processes. Softeon’s customers include organizations such as Sears Homes Services, Sony DADC and DB Schenker Logistics.
The combined solution the companies foresee will leverage IFS’s partnerships with leading robotics companies including Boston Dynamics and 1X Technologies. Physical AI in the form of humanoid robots and autonomous mobile robots will work alongside IFS Loops Digital Workers to orchestrate complex warehouse workflows, the companies stated. IFS noted that under its vision unveiled at its Industrial X Unleashed event, AI is best applied through contextual, industry-specific intelligence, embedded where work happens
Mark Moffat, CEO of IFS, commented: “The warehouse is the next frontier for Industrial AI. As we work with increasingly complex global manufacturers and asset-intensive enterprises, warehouse operations must become as intelligent and autonomous as the production lines they support. Softeon brings proven warehouse expertise to IFS, and we deliver next-generation AI, robotics orchestration, and deep industrial domain knowledge. Together, we’re redefining what’s possible when you apply Industrial AI where it matters most: on the warehouse floor, in real-time, with measurable impact on throughput, accuracy, and workforce capacity.”
Softeon’s native integrations with robotics, voice systems, and automation technologies, combined with IFS.ai’s agentic capabilities, are touted as being about to unlock significant opportunities for warehouse intelligence.
“Joining forces with IFS represents an extraordinary opportunity to accelerate our innovation in warehouse management, said Jim Hoefflin, CEO of Softeon. Our customers have been asking for advanced AI capabilities, seamless integration with robotics, and stronger connection between warehouse operations and broader supply chain processes. IFS brings exactly that, along with unmatched experience serving the demanding, mission-critical industries where precision and reliability are non-negotiable. This partnership allows us to deliver the next generation of warehouse intelligence while maintaining the deep domain expertise and customer focus that has made Softeon a trusted partner to leading enterprises worldwide.”
Softeon will continue to operate as an autonomous organization, led by the same leadership team, and will continue selling its modular solutions to companies regardless of whether they run IFS applications, a Softeon spokesperson told Modern. While Softeon sees “meaningful opportunities” to serve the IFS customer base and pursue joint new prospects, the spokesperson added, those are complementary to Softeon’s broader market approach of offering modular software solutions to 3PLs, companies in healthcare, CPG, food & beverage, and other sectors with complex fulfillment environments.
The deal for Softeon involves its current majority investor, private equity firm Warburg Pincus, which initially invested in Softeon in 2019.
link
