DemandTec Inc. serves as a network for retailers and consumer products companies, providing common tools to transact, interact and collaborate on core merchandising and marketing activities. The company today announced it has acquired all assets of Applied Intelligence Solutions LLC (AIS), a developer of intelligent software solutions for the retail enterprise focused primarily on softline retailers.

The deal gives DemandTec ownership of the intellectual property designed to apply complex pattern recognition techniques to softline and other short lifecycle retail categories. The deal also equips DemandTec with additional industry expertise in software application development for retail softlines.

“Adding AIS’s advanced pattern recognition science, domain expertise, and technology to our footprint is a natural fit for DemandTec,” Dan Fishback, president and CEO of DemandTec stated in the press release. “Through this transaction, DemandTec expands its existing support for the full spectrum of merchandising and marketing processes for short lifecycle categories like consumer electronics, home goods, and softlines.”

DemandTec will use AIS’s MarkdownXpert technology with Markdown Optimization, DemandTec’s currently used software service currently used that allows retailers to design optimal plans that set markdown timing, which in turn enhances profitability and inventory objectives for clearance items.

“Bringing expanded softline capabilities and expertise to a market leader like DemandTec introduces a unique merchandising solution for retailers today,” Jim Dixon, president and CEO of AIS stated.

As part of the transaction, DemandTec has acquired a U.S. patent relating to behavior recognition, expanding DemandTec’s patent portfolio to 25 issued patents, including 20 in the United States and five internationally.