Subscribe to our free, weekly email newsletter!


RedPrairie to acquire JDA for roughly $1.9 billion

By Staff
November 01, 2012

Supply chain and logistics software and technology providers RedPrairie and JDA Software announced today that two companies and its affiliates have entered into a definitive merger agreement.

Officials from RedPrairie and JDA said that RedPrairie will acquire all outstanding shares of JDA stock for $45 per share, which they said represents a 33 percent premium to JDA’s stock price as of October 26, which they said was the day before rumors suggested JDA was looking to be sold. The total value of the transaction is roughly $1.9 billion and it is expected to close by the end of this year.

JDA CEO Hamish Brewer is expected to lead the combined company as CEO, and RedPrairie CEO Michael Mayoras will serve on the board of the combined company.

RedPrairie and JDA officials said that the combined entity will “offer a broad portfolio of solutions and services to manage global supply chains—from raw materials, to finished products, into the hands of customers—through any channel.”

Brewer said in a statement that it will give businesses the power to better manage global commerce through a whole new world of capabilities, with the combined company having a unique ability to address its customers’ increasingly complex needs with various solutions for planning and execution across the entire value chain.

Industry experts said that there are strong synergies between the two companies as RedPrairie has a strong retail presence, especially inside the four walls of the retail store, due in part to its acquisition of BlueCube Software, whom focused on retail site and headquarters operations, in 2006.

And JDA has a very strong set of retail supply chain planning applications, including inventory optimization, demand planning and network optimization. Some of that was core to JDA and some as a result of its acquisitions of Manugistics and i2. JDA also has a strong set of transportation/logistics applications and what they don’t have is inside the four walls warehouse management, which RedPrairie brings.

An industry source estimated that combined revenues will be in the $1 billion to $1.2 billion range, which would make them the largest best of breed provider of supply chain management software, and make them about 3 times the size of Manhattan Associates. The source added that they will be as big as, perhaps slightly larger, than Oracle’s supply chain management practice but not as big as SAP’s.

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

The Institute for Supply Management’s (ISM) August edition of the Manufacturing Report on Business saw its PMI, the ISM’s index to measure growth, fall 1.6 percent to 51.1, following a 0.8 percent decline to 52.7 in July. Even with the relatively slow growth over the last two months, the PI has been at 50 or higher for 31 consecutive months.

Hackett observed in the new report that China’s economy has lost steam, with actual growth falling short of targeted rates, while the United States most recent second quarter GDP reading at 3.7 percent outpaced expected targets, even though it was negatively impacted by gains in manufacturing and retail inventories.

The proposed merger of Cosco and CSCL could spark further container consolidation

The average price dropped 4.7 cents to $2.514 per gallon, which now stands at the lowest weekly average price for diesel since July 2009, when it was at $2.542 the week of July 27, 2009, according to EIA data.

The Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in June dropped 3.8 percent annually to $99.0 billion. This followed a 10.8 percent decline in May to $92.7 billion.

Article Topics

News · RedPrairie · JDA · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA