RedPrairie to be acquired

By Modern Materials Handling Staff
March 01, 2010 - MMH Editorial

Last December, RedPrairie (http://www.redprairie.com), a supplier of supply chain execution software and No. 5 on Modern 's 2009 Top 20 supply chain management software providers, filed a registration statement with the SEC for a proposed IPO.

That appears to be off the table after RedPrairie recently announced that it had entered into a definitive agreement to be acquired by an investment fund affiliated with New Mountain Capital LLC, a New York-based private equity firm with approximately $8.5 billion under management. The deal is expected to close on March 31, according to Mike Mayoras, RedPrairie CEO. The terms of the deal are not public.

“We continue to be registered with the SEC to go public and will remain so until this deal closes,” Mayoras said. “However, we have a signed agreement, and we feel comfortable that the deal will close.”

The sale comes approximately five years after RedPrairie was purchased by Francisco Partners in May 2005. Like Francisco Partners, which had a portfolio of tech companies besides RedPrairie, New Mountain Capital is also a technology and software investor, counting Deltek, a publicly traded provider of enterprise applications for project-management focused companies, among its holdings. 

According to Mayoras, a change in ownership should not affect customers. RedPrairie plans to continue rolling out new applications in the supply chain execution space. “New Mountain is not a stranger to the software space,” said Mayoras. “We expect that they will be interested in seeing us execute the strategy for growth that we have outlined, which means more applications and more of a focus on the demand-driven supply chain, from the store back through the warehouse and the factory.”



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

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

West Coast port authorities may be overstating the obvious when they decry “business as usual.” But it’s refreshing to see them finally coming around.

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.

Comments

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