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

Transportation stakeholders reliant on North Carolina’s major seaports are welcoming news this week, which outlines plans to enhance the intermodal and cold chain network in the region.

The index ISM uses to measure non-manufacturing growth—known as the NMI—was 56.9 in February, which was 0.2 percent ahead of January and also 0.1 percent ahead of the 12-month average of 56.8. Economic activity in the non-manufacturing sector has grown for the last 61 months, according to ISM.

Non asset-based third-party logistics (3PL) services and logistics technology services provider Transplace said today that Brooks Bentz has joined the company in a newly-created role as president of Transplace Consulting in conjunction with the launch of the company’s new North American consulting services practice.

The advent of e-commerce continues to grow and gain increased traction over time. The many ways for consumers to order and purchase goods online continues to expand and leads to various subsequent byproducts of online purchases, including shopping through multiple channels, and delivery and payment options, among other things. These types of topics serve as the thesis in the second annual UPS Pulse of the Online Shopper Global Study issued this week by UPS and comScore Inc.

A major highlight of CEVA’s fourth quarter performance was its new business wins, which were up 14 percent for all of 2014, with Freight Management wins up 14 percent, and Ocean Freight and Air Freight wins up 30 percent and 14 percent, respectively, while Contract Logistics wins were up 2 percent.

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