SAP plans to buy Visiprise, which makes software that manufacturers use to plan, execute and troubleshoot their plant-level operations, it announced Tuesday.
Terms of the deal, which is expected to close in July, were not disclosed.
SAP plans to align Visiprise's software with its business applications as well as its Manufacturing Integration and Intelligence product, which links business operations to systems running on the shop floor.
The two companies have been working together for a number of years, and SAP's NetWeaver Fund made an investment in Visiprise in November 2006, according to a statement.
John Zepecki, a senior vice president at SAP, said the company is buying Visiprise for its company and people. Its CEO, Sean McCloskey, will begin reporting to Zepecki and the "vast majority" of its 300 employees will be retained, he said.
SAP will continue updating Visiprise's software, which is based on SAP's NetWeaver platform, according to Zepecki.
The acquisition "makes sense for what they're doing," said Ray Wang, an analyst with Forrester Research. "Oracle and SAP are both competing for that last mile to the shop floor."