IFS has entered into a definitive agreement to acquire Softeon, a provider of cloud native warehouse management, warehouse execution, and distributed order management software, in a deal aimed at extending IFS’s Industrial AI capabilities into warehouse operations. IFS said the combination will create an integrated platform that links manufacturing operations with warehouse execution, as enterprises modernize supply chains amid infrastructure constraints and labor shortages.
Softeon, described by IFS as a Gartner Visionary, offers WMS and WES capabilities used by customers, including Sears Home Services, Sony DADC, and DB Schenker Logistics. IFS said Softeon’s software is particularly relevant for complex industries where distribution and fulfillment must operate with the same precision as production systems.
IFS said the acquisition supports its strategy of embedding industry-specific AI directly where work happens. The company expects to apply agentic AI and physical AI orchestration to warehouse workflows, including fulfillment, labor optimization, yard visibility, and automation integration, shifting away from manual, paper-based processes common in legacy systems. As part of the roadmap, IFS said it plans to leverage partnerships with robotics companies, including Boston Dynamics and 1X Technologies, combining humanoid robots and autonomous mobile robots with IFS Loops Digital Workers to coordinate warehouse tasks inside a single platform for mission-critical operations.
IFS framed the deal as an opportunity to create a new challenger in the warehouse management systems market, which it described as growing at 12% annually. The company said traditional WMS providers have struggled to integrate modern AI and robotics into older architectures, while Softeon’s cloud native foundation, combined with IFS.ai, is intended to enable autonomous and intelligent operations at enterprise scale. IFS said customers in aerospace and defense, energy, engineering and construction, manufacturing, and transport will gain warehouse capabilities that better align with production and service operations.
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2026.
KEY QUOTES:
“The warehouse is the next frontier for Industrial AI. As we work with increasingly complex global manufacturers and asset-intensive enterprises, warehouse operations must become as intelligent and autonomous as the production lines they support. Softeon brings proven warehouse expertise to IFS, and we deliver next-generation AI, robotics orchestration, and deep industrial domain knowledge. Together, we’re redefining what’s possible when you apply Industrial AI where it matters most: on the warehouse floor, in real-time, with measurable impact on throughput, accuracy, and workforce capacity.”
Mark Moffat, CEO, IFS
“Joining forces with IFS represents an extraordinary opportunity to accelerate our innovation in warehouse management. Our customers have been asking for advanced AI capabilities, seamless integration with robotics, and stronger connection between warehouse operations and broader supply chain processes. IFS brings exactly that, along with unmatched experience serving the demanding, mission-critical industries where precision and reliability are non-negotiable. This partnership allows us to deliver the next generation of warehouse intelligence while maintaining the deep domain expertise and customer focus that has made Softeon a trusted partner to leading enterprises worldwide.”
Jim Hoefflin, CEO, Softeon
