Swedish industrial AI software specialist IFS has acquired Softeon, a provider of cloud-native warehouse management systems.

This move extends IFS’s industrial AI capabilities into the $8.6bn warehouse management market, creating an integrated platform that connects manufacturing operations seamlessly with intelligent warehouse execution.

The acquisition represents a natural evolution of IFS’s manufacturing industry capabilities. As enterprises face mounting pressure to modernise supply chains, rebuild aging infrastructure and navigate persistent labour shortages, the connection between production and distribution has never been more critical.

Softeon’s WMS and WES (warehouse execution system) capabilities are essential for IFS customers in complex industries where warehouse operations must match the precision and intelligence of their manufacturing processes. Softeon customers include organisations such as Sears Homes Services, Sony DADC and DB Schenker Logistics.

IFS and Softeon are positioned to challenge the traditional WMS segment by applying industrial AI directly into warehouse operations. Where legacy systems rely on manual processes and paper-based workflows, this combination will embed agentic AI and physical AI orchestration into every aspect of warehouse management, from fulfilment and labour optimisation to real-time yard visibility and automation integration.

“The warehouse is the next frontier for industrial AI,” said Mark Moffat, CEO of IFS (www.ifs.com). “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.”

Softeon’s cloud-native platform provides a foundation for IFS to transform warehouse operations with the same approach that is already multiplying workforce capacity across field service, asset management and manufacturing.

The combination will leverage IFS’s partnerships with robotics companies including Boston Dynamics and 1X Technologies to create fully autonomous warehouse environments. Physical AI in the form of humanoid robots and autonomous mobile robots will work alongside IFS Loops digital workers to orchestrate complex warehouse workflows, all within an integrated platform designed for mission-critical industrial operations.

Softeon’s native integrations with robotics, voice systems and automation technologies, combined with IFS’s agentic capabilities, unlock opportunities for warehouse intelligence. The digital workers will process orders and manage inventory around the clock. Robotic systems will handle physical tasks and capture operational data. Human workers will be elevated to higher-value judgment calls and exception management, multiplying total warehouse capacity exactly when labour shortages have reached crisis levels.

The combination of Virginia-based Softeon’s cloud-native platform with IFS’s industrial AI and robotics partnerships creates an offering where warehouse intelligence isn’t bolted on, but architected from the ground up for autonomous, intelligent operations at enterprise scale.

For IFS customers across aerospace, defence, energy, engineering, construction, manufacturing and transport, the acquisition delivers immediate value. Global enterprises require warehouse capabilities that match the intricacy of their production systems. Softeon’s WMS and WES, now enhanced with IFS AI provide that, enabling end-to-end supply chain orchestration where manufacturing, warehouse execution and field service operations work as one intelligent system.

“Joining forces with IFS represents an extraordinary opportunity to accelerate our innovation in warehouse management,” said Jim Hoefflin, CEO of Softeon (www.softeon.com). “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.”

The transaction is subject to regulatory approvals and is expected to close in the first quarter of this year.