RedPrairie to acquire JDA for roughly $1.9 billion

By Staff
November 01, 2012 - LM Editorial

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 International Air Transport Association (IATA) announced August 2014 data for global air freight markets showing continued “robust”growth in air cargo volumes.

Even though some of its key metrics dropped sequentially from August to September, the outlook for manufacturing over all remains strong, according to the most recent edition of the Manufacturing Report on Business issued today by the Institute for Supply Management (ISM).

Company officials said that these planned changes, which will take effect on January 4, 2015, will provide for increases in current pay rates and reduce the time it takes for its nearly 15,000 drivers to reach top pay scale.

While the economy has seen more than its fair share of ups and downs in recent years, 2014 is different in that it could be the best year from an economic output perspective in the last several years. That outlook was offered up by Rosalyn Wilson, senior business analyst at Parsons, and author of the Council of Supply Chain Management Professionals (CSCMP) Annual State of Logistics Report at last week’s CSCMP Annual Conference in San Antonio.

Matching last week, the average price per gallon of diesel gasoline dropped 2.3 cents, bringing the average price per gallon to $3.755 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Article Topics

News · RedPrairie · JDA · All topics

About the Author

Jeff Berman, News Editor
Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. Contact Jeff Berman.

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA