Editors Note: This posting has been updated at Noon, August 19, to include an announcement from JDA indicating that it has completed a recapitalization of the company that involves Blackstone Group. (See my amended Comments below)
There has reportedly been a new development regarding prior Reuters and Wall Street Journal reports regarding the potential acquisition of JDA Software.
Reuters, the news agency that originally disclosed the presence of acquisition talks by Honeywell International has now reported that private equity firm Blackstone Group has appeared as an apparent white knight offering a financing bridge plan as an alternative to a Honeywell proposal. In its latest report, Reuters again cites unnamed sources that are familiar with the matter that are stressing confidentiality.
Neither of the parties involved or mentioned have responded to Reuters direct requests for comment.
Supply Chain Matters is obviously is not going to get in the middle of all of this and we have elected to just pass along awareness and web link to the published report.
According to the report, Blackstone is proposing a payment-in-kind financing plan that includes equity warrants that would give Blackstone a significant minority stake in the supply chain management technology firm. Further reported is that JDA’s current debt of more than $2 billion is within compliance to its loan covenants and does not require significant debt repayments for reportedly two years.
Given this report, JDA’s principal owners New Mountain Capital would appear to have another option on the table, namely stay the course and accelerate its turnaround with a new infusion of capital but with an added private equity partner with a voice. That implies a longer-term commitment to its 2012 investment in JDA.
It would seem that these confidentiality leaks continue while some sort of back and forth negotiation process continues among parties.
I suppose we all need to stay tuned for the next leak or announcement. For existing JDA customers, the situation must be perplexing to say the least.
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.