William B. Cassidy | May 19, 2011 5:13PM EDT
For-hire trucking software provider TMW Systems acquired Appian Logistics Software, extending its reach into the private fleet and logistics markets.
The acquisition gives Cleveland-based TMW customers in the not-for-hire private fleet arena, such as grocery and food and beverage fleets, the company said.
Appian also gives TMW a bigger presence in logistics planning and transportation management for third-party logistics providers and dedicated fleets.
“Appian is in a lot of adjacent markets to our for-hire trucking customers,” said Scott Vanselous, chief marketing officer at TMW. “It extends the industries we serve.”
The acquisition also expands TMW’s portfolio of freight network design, lane and bid analysis, load optimization, routing and scheduling optimization software.
Appian optimizes short-haul, multi-stop networks for private and dedicated fleets — a different challenge than optimizing the networks of for-hire truckload carriers.
The purchase of Appian for an undisclosed price is the fifth acquisition by TMW since Pamlico Capital and Peppertree acquired the software vendor in 2005.
TMW had about $73 million in revenue in 2010 and expects sales to grow to $85 million this year, according to the company, which was founded in 1984.
Appian has 250 customers, only 30 of which are already TMW customers, the company said. The combined company will have more than 2,000 customers.
Together, they work with 21 of the top 25 dedicated carriers, Vanselous said.
The Appian acquisition underscores increasing diversification within the transportation industry, especially among for-hire truckload carriers.
“It’s difficult to find a pure-play long-haul truckload carrier anymore,” said Monica Truelsch, TMW director of marketing, as truckers add new services.
The transportation world is becoming more multimodal, and transportation software systems need to reflect that shift, Vanselous and Truelsch said.
--Contact William B. Cassidy at wcassidy@joc.com. Follow him on Twitter at @wbcassidy_joc.