Systems Integrator Quest Solution Acquires AI Specialist HTS To Create 'Next Level' Supply Chain Solutions

Global solution provider Quest Solution is buying artificial intelligence image specialist HTS Image Processing for $6.3 million with plans to integrate AI into its supply chain solutions.

Quest Solution, ranked No. 297 on CRN's 2018 Solution Provider 500 list, said HTS proprietary AI technology will create automated logistic monitoring and optimization for its Fortune 500 customers around supply chain management.

"This acquisition provides higher margin growth and transforms Quest's business model by positioning the company as a technological leader with state-of-the-art solutions in two multi-billion dollar, high-growth markets of [Smart City and Supply Chain Management]," said Quest CEO Shai Lustgarten, who took over leadership of the Eugene, Ore.-based solution provider in April 2017. "Adding new technology with company-owned IP was a key goal that we articulated when new management embarked on the turnaround of Quest."

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Quest is a specialty systems integrator who designs, deploys and manages enterprise mobility solutions, including mobile cloud analytics, automatic identification and data capture, and mobility software. HTS, which generated $29 million in revenue in the first half of 2018, provides AI-based solutions that leverage advanced algorithms based on cognitive science and AI pattern recognition that is used for sensitive projects such as for Homeland Security anti-terrorism and airport security.

Quest will infuse HTS solutions into its own portfolio to allow automation around logistics monitoring and optimization, creating "significantly higher" average gross margin for the company, Quest said.

"HTS' AI technology will take our supply chain solutions to the next level, addressing essential needs in law enforcement, Homeland Security, logistic yard management, automation of parking, traffic management and security," said Lustgarten, in a statement.

Additionally, HTS has a Salt Lake City-based facility that manufactures ruggedized computers and other electronics products. Quest will use the facility to support the manufacture of new white label products for its own supply chain solutions. The introduction of white label equipment is expected to enhance customer service while driving higher margins and revenue growth for Quest.

Founded in 1997, Quest provides products and services that identifies, tracks and connects data to enterprise systems such as CRM and ERP systems whose clients are leading Fortune 500 companies.