SAP Acquires Lighthammer to Deliver Solutions for Improved Manufacturing Performance | Automation.com

SAP Acquires Lighthammer to Deliver Solutions for Improved Manufacturing Performance

June 242005
SAP Manufacturing Coupled with Lighthammer Collaborative Manufacturing Suite to Improve Manufacturing Production Performance with Accelerated Time-to-Value

SAP AG (NYSE:SAP) today announced that it is delivering enhanced connectivity between the plant floor and the enterprise by acquiring Lighthammer Software Development Corporation, a privately-held, leading supplier of enterprise manufacturing intelligence and collaborative manufacturing software, based in Exton, Pennsylvania. The acquisition will deliver value through improved manufacturing performance with rapid time-to-value for SAP's installed base of more than 12,000 manufacturing customers. Lighthammer's Collaborative Manufacturing Suite (CMS) will be delivered as an SAP xApps(TM) composite application on the SAP NetWeaver(TM) platform. The announcement was made today at ARC Advisory Group's Performance Driven Manufacturing Forum in Boston, Massachusetts.

"Acquiring Lighthammer supports SAP's strategy of enabling adaptive business networks, or ABNs, for our customers," said Nils Herzberg, SVP, Manufacturing Industry Solutions, Product and Technology Group (PTG), SAP. "Essential to enabling the ABN is bridging the disconnect between the shop floor and the enterprise through what SAP refers to as adaptive manufacturing--the ability of a manufacturer to profitably replenish the supply chain while dynamically adapting to unpredictable change. The SAP Lighthammer combination exemplifies the ABN vision."

SAP said that the acquisition supports the company's commitment to offering an ISA-95 enabled manufacturing solution that further reduces the complexity of building custom connections to shop floor systems and thereby accelerates the time-to-value for the end customer.

The SAP Lighthammer solution will provide real-time visibility to manufacturing exceptions and performance variances, including root causes and business impacts, enabling manufacturers and their production personnel to adapt to change and rapidly respond to unforeseen demand and supply events. The combination will enable SAP to deliver real-time transactional integration between ERP and plant floor systems as well as unified, real-time analytics and visualization, often referred to as "manufacturing intelligence," out-of-the box to its manufacturing customers; the combination will also enable companies to leverage their current investments at a lower total-cost-of-ownership (TCO).

"Breaking down the barrier between the plant floor and the business systems is key to manufacturing and supply chain productivity," said Kirk Royster, manager of global enterprise architecture, Dow Corning. "Implementing Lighthammer and the SAP manufacturing intelligence dashboards, integrated through SAP NetWeaver at our manufacturing facilities, allows both plant personnel and line management to access information and the relevant KPIs for making right time decisions while fully understanding the business impact of these decisions. This has already contributed to increased responsiveness and tangible value at a lower total cost of technology ownership for Dow Corning."

Utilizing the ISA-95 standards for manufacturing interoperability, the Lighthammer and SAP manufacturing solution will exchange data and render them through the SAP manufacturing intelligence dashboards to deliver actionable intelligence in the form of alerts, reports, key performance indicators (KPIs) and decision support to production personnel for right time decision making. The combined solution will allow production personnel to identify deviations in real time, provide drill-downs to understand the business and financial impact of the exceptions to be managed and display the workflows to resolve them rapidly and cost-effectively, resulting in improved productivity.

"Lighthammer and SAP have a shared vision of the adaptive business network, exemplified by our longstanding partnership as a premier SAP xApps partner," said Russell Fadel, CEO, Lighthammer. "We are happy to join the SAP family and deliver on the adaptive manufacturing vision and strategy while driving real value for SAP's manufacturing customers."

In making the announcement SAP stated that the acquisition is expected to be completed in July 2005. In addition, Lighthammer employees will remain in their current facilities in Exton, Pa., and will become a part of SAP America and SAP Labs. Mufson Howe Hunter & Company LLC, a Philadelphia-based investment bank, served as financial advisor to Lighthammer Software Development Corp. on this transaction.

About Lighthammer
Prior to this announcement, Lighthammer, was a privately held corporation headquartered in Exton, PA., that develops and markets Lighthammer Collaborative Manufacturing Suite (CMS), the world's first and only composite application platform for manufacturing Operational Excellence. Lighthammer CMS provides the complete set of services required to quickly assemble operational excellence applications in the areas of Performance Management, Continuous Improvement and Operational Synchronization. Built on a modern, service-oriented architecture, Lighthammer CMS enables composite applications to be created in a fraction of the time of traditional approaches, increasing responsiveness and delivering exceptional business returns. More than 100 Fortune 500 manufacturing companies have deployed Lighthammer solutions.

Lighthammer is an SAP Powered by NetWeaver and SAP xApps Partner, and is currently in use at hundreds of companies worldwide.

Further information on Lighthammer and its products can be found at www.lighthammer.com.

About SAP
SAP is the world's leading provider of business software solutions*. Today, more than 27,000 customers in over 120 countries run more than 91,500 installations of SAP(R) software--from distinct solutions addressing the needs of small and midsize businesses to enterprise-scale suite solutions for global organizations. Powered by the SAP NetWeaver(TM) platform to drive innovation and enable business change, mySAP(TM) Business Suite solutions are helping enterprises around the world improve customer relationships, enhance partner collaboration and create efficiencies across their supply chains and business operations. SAP industry solutions support the unique business processes of more than 25 industry segments, including high tech, retail, public sector and financial services. With subsidiaries in more than 50 countries, the company is listed on several exchanges, including the Frankfurt stock exchange and NYSE under the symbol "SAP."

Additional information at www.sap.com.

* SAP defines business software solutions as comprising enterprise resource planning and related software solutions such as supply chain management, customer relationship management, product life-cycle management and supplier relationship management.

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "should" and "will" and similar expressions as they relate to SAP are intended to identify such forward-looking statements. SAP undertakes no obligation to publicly update or revise any forward-looking statements. All forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from expectations The factors that could affect SAP's future financial results are discussed more fully in SAP's filings with the U.S. Securities and Exchange Commission ("SEC"), including SAP's most recent Annual Report on Form 20-F filed with the SEC. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates.

Copyright (C) 2005 SAP AG. All rights reserved.
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