DemandTec to Acquire M-Factor

DemandTec, Inc., a collaborative optimization network for retailers and consumer products companies, has signed a definitive agreement to acquire privately-held M-Factor, Inc., a provider of predictive analytics software for marketing mix and trade investment spending.

According to San Mateo-based DemandTec, M-Factor is a software-as-a-service company that enables consumer products companies to continuously analyze, forecast, and optimize marketing investments and trade spend. The services deliver optimized action plans, reliable forecasts for plans and “what-if” scenarios, and reports that decompose the drivers of sales volume to explain why results came out as they did.

“This is a significant advancement for both DemandTec and the consumer products and retail industries we serve,” said Dan Fishback, president and CEO of DemandTec. “With the acquisition of M-Factor, DemandTec will be able to deliver a collaborative, science-driven framework for optimizing marketing mix, trade promotion planning, and shopper marketing decisions on a unified platform. We are investing in a paradigm of continuous, collaborative planning on the DemandTec network for retailers and consumer products companies alike.”

M-Factor CEO said, “Our two companies share a common heritage and similar philosophy of applying math and science to drive the most effective, shopper-centric marketing and trade planning decisions for the largest retailers and consumer products companies around the globe. As a result of this acquisition, our customers will be able to realize even greater returns on their marketing and trade investments resulting in a sustained competitive advantage.”

The acquisition will bring DemandTec two patented techniques supporting predictive analytics and consumer demand science, plus a list of customer relationships that includes The Alberto Culver Company, The Coca-Cola Company, The Dannon Company, General Mills, Inc., The Kellogg Company, Nestlé Waters North America, Inc., and Ocean Spray Cranberries, Inc.