On Tuesday, Supply Chain Matters commented that something was up at supply chain planning technology provider JDA Software, and that an announcement could come soon.
This morning features breaking news indicating that privately held supply chain execution technology provider RedPrairie and JDA Software will merge into a combined supply chain planning and execution powerhouse with revenues extending beyond $1 billion.
According to the press announcement a cash tender offer of $45 per share, representing a 33 percent premium to JDA’s stock price on October 23, will be extended. The total value is estimated to be $1.9 billion, and there are certain conditions that must be met to complete this deal. RedPrairie itself was acquired in 2010 by New Mountain Capital, and has since completed a number of other acquisitions to include cloud-based WMS provider SmartTurn, SofTechnics Shippers Commonwealth, Escalate, and Vortex Connect. The JDA merger, however, is far more significant.
The announcement also indicates that current JDA CEO Hamish Brewer will lead the combined companies while existing RedPrairie CEO Michael Mayoras will remain on the board of the combined companies.
Obviously, this deal, if consummated provides significant implications for both management of the combined companies and for the supply chain best-of-breed technology market as a whole. Supply Chain Matters has often reinforced the fact that in today’s new normal of highly dynamic global supply chains, where time is ever more critical, supply chain planning and execution processes have been compelled to morph as one contiguous process. This announcement is a significant testimonial to that trend.
There will be an industry analyst briefing later today and Supply Chain Matters will reserve further commentary until more information is gleamed.
In the meantime, existing customers from both companies should be patient and await the full picture of the implications in terms of timing, resource impacts and product implications.