YARDLEY, PA. — Prophet 21 took another step in its plan to become an even bigger player in the distribution software market last month with the purchase of Systems Design, Inc. The acquisition adds 238 distributors to Prophet 21's customer base and bolsters its strength as one of the largest industrial distribution software providers.

Doug Levin, executive vice president of Prophet 21, said the deal also helps grow Trading Partner Connect, the company's Internet trading network.

The acquisition continues a consolidation trend in the software industry, as smaller, independent companies seek to broaden their capabilities or cash out of the business, and larger firms attempt to compete on a wider playing field.

This is the second acquisition for Prophet 21 this year. The company acquired Faspac Systems, which specializes in the fastener industry, in June.

Systems Design is a 27-year-old company serving distributors in the industrial and floor covering markets in the United States and Canada. Based in the Chicago area, Systems Design is known for its Prism software. Levin said Prophet 21 will maintain a presence in the Chicago marketplace.

He added that the deal is a win for both Systems Design and Prophet 21 customers. The former will benefit from Prophet 21's wide array of products and services, while the latter will gain from its strength as a larger corporation.

"This makes us a stronger company," said Levin. "Part of our strategy is to grow both organically … and also through acquisition. We look for candidates that fit our model, and if the appropriate situation comes up, we move forward with it."