What: IKEA purchases Made4net in order to boost online capabilities.

Why it is important: This is only the third acquisition made by the group in 6 years, in spite of its formidable financial capabilities (and needs).

IKEA, through its parent company Ingka Group, is acquiring US supply-chain software provider Made4net to enhance its e-commerce operations. The move aims to make IKEA's growing online business faster and more precise. IKEA's chief digital officer, Wim Blaauw, emphasised the need for "state-of-the-art" technology to improve the customer experience for digital shoppers as online orders continue to increase. The acquisition of Made4net will allow IKEA staff to locate and dispatch products more quickly and accurately. Made4net, founded in 2005, will continue to operate as a stand-alone company.

This purchase is IKEA's third 100% acquisition, following its acquisition of TaskRabbit in 2017 and Geomagical Labs in 2020, both also US companies. IKEA is planning significant expansion in the US, with an investment of $2.2 billion to open 17 new stores over the next three years. It has also committed to spending more than $3 billion globally to upgrade its existing stores and invest in technology to enhance its order processing capabilities.

The decision to buy Made4net rather than just license its software was made because order fulfilment is a central aspect of IKEA's operations, and the company wanted to own this crucial stage in the selling process. The new software is expected to start rolling out in IKEA stores in the coming year, but it will likely take several years to fully implement globally.

IKEA makes software acquisitions to speed up e-commerce