JDA Software to acquire Manugistics for $211 million

Staff -- Logistics Management, 5/16/2006

SCOTTSDALE, Ariz. and ROCKVILLE, Md.—JDA Software Group, Inc., provider of demand chain solutions, has acquired Manugistics Group Inc., a provider of supply chain management solutions, for roughly $211 million in cash, or $2.50 per share.

Based on each company’s latest fiscal year results, the combined company would have had annual revenues in excess of $390 million. The combined companies have a combined base of more than 5,500 customers.

JDA plans to retain a number of Manugistics executives, as well as the Manugistics product brand name.

Thoma Cressy Equity Partners, an enterprise software investor with approximately $2 billion in equity under management, plans to invest $50 million in JDA Software in the form of convertible preferred stock. The investment is contingent upon the closing of the Manugistics transaction.

The synergies in operations, general, administrative, and infrastructure resulting from the combination of JDA and Manugistics are expected to produce annual cost savings of $25 to $30 million within the first 12 months of closing.

The acquisition is expected to close in the second or third quarter of the calendar year, and is subject to approval of Manugistics stockholders, expiration or termination of waiting periods, and other regulatory and customary conditions.