Deal will create $1bn supply chain management company
Georgia-based enterprise software firm RedPrairie has agreed to acquire supply chain management software firm JDA Software Group for about $1.9bn.
RedPrairie, backed by private- equity firm New Mountain Capital, will pay $45 a share for the acquisition, paying 33% premium above JDA's closing stock price on 26 October.
RedPrairie said JDA's expertise in market-leading supply chain planning, merchandising and pricing offering will be strategic fit with RedPrairie's warehousing, workforce management, store operations and e-commerce.
JDA president and CEO Hamish Brewer said that the transaction will generate tremendous value for JDA shareholders, offering them a meaningful premium for their shares.
"This is a strong combination of two leading companies with highly complementary product suites. It will give businesses the power to better manage global commerce through a new world of capabilities,"Brewer said.
"The combined company will have a unique ability to address our customers' increasingly complex needs with a full spectrum of solutions for planning and execution across the entire value chain."
In addition, the deal will create a combined company with annual revenue of over $1bn.
The combined company will be led by JDA's chief executive Hamish Brewer, while RedPrairie's CEO Michael Mayoras, will remain on the board.
RedPrairie and JDA expect the deal to close by the end of 2013, following regulatory clearances.
The deal will be funded with a loan from debt financing from Credit Suisse and RedPrairie owner New Mountain Capital will commit additional new cash equity in the deal.
RedPrairie CEO Michael Mayoras said: "This merger establishes a company perfectly suited to meet the evolving demands of the 'always-on' mobile consumer."