Reuters is reporting that Honeywell International is in talks to acquire supply chain management planning and execution software provider JDA Software for a reported sum of $3 billion. This report has since been picked-up by other media outlets including Yahoo Finance.

The report cites sources that asked not to be identified because the ongoing negotiations are confidential.  That alone would seem to imply that someone wanted such information to be leaked to media.

Neither Honeywell nor New Mountain Capital, the current owners of JDA declined to comment to Reuters regarding its report.

The report also indicates that JDA has been struggling with more than $2 billion in debt and that credit agency Moody’s Investors has warned that the software providers debt load might be unsustainable without a sizeable equity infusion or reduction in debt. Further indicated is that New Mountain Capital has explored a sale to private equity firms as well.

Honeywell has reportedly been looking to beef-up its sensing and productivity and automation solutions division adding to its prior acquisition of Intelligrated Inc for $1.5 billion.

Supply Chain Matters will continue to monitor this reported development, but we caution readers that this report should be considered as not definitive and that talks could not come to fruition. If JDA is acquired, it would be rather significant news regarding the supply chain technology landscape.


Disclosure: JDA Software, while a prior sponsor of this blog, has no current client or sponsor relationship with The Ferrari Consulting and Research Group or the Supply Chain Matters© blog.