HighJump CEO: no blind leap in 3M deal

Chris Heim, CEO of supply chain execution software vendor HighJump Software, says the January 5 announcement that 3M will acquire HighJump for an undisclosed amount differs from recent consolidation moves in the enterprise software market. Heim says that most recent deals involve one software vendor buying up another, and then paring down staffs to achieve cost savings. By contrast, he says, "We'll be known as HighJump Software, a 3M company, and be an important part of 3M's Industrial Services and Solutions Division. We'll be in the same location, with the same culture, and with all our top management remaining in place. 3M thinks it can help us accelerate our growth, so it's a revenue growth-based synergy behind the deal, not a cost-based synergy."

The division HighJump is joining offers packaging solutions, but Heim says while there are some product synergies, the main benefits are in greater financial strength and global presence. Says Heim, "We'll still be a fast-moving company, but we'll be able to lean on 3M's big shoulders."