RedPrairie, JDA honchos tout benefits of $1.9 billion combination
RedPrairie Corp.’s $1.9 billion all-cash purchase of JDA
Software Group Inc. combines two providers of complementary software that will help users improve their competitiveness in the increasingly important multichannel
retail space, the chiefs of the two firms said.
The acquisition, announced Nov. 1, merges two big players in enterprise software and services with a combined $1
billion in annual revenue. The new entity’s goal is to build
a one-stop supply chain technology shop for retailers and
manufacturers working across various platforms, especially
the fast-growing market for mobile communications.
Speaking the following day to reporters, JDA President
and CEO Hamish Brewer, who will run the combined company, said that as retailers and their suppliers expand into
multiple consumer channels, the demands of managing
supply chains become more complex.
“Consumers now have multiple ways to purchase. The
supply chain necessary to support that has to be far more
responsive than the traditional supply chain,” Brewer said.
RedPrairie CEO Mike Mayoras, who will serve on the new
company’s board, added, “Our companies have amassed a
massive amount of domain knowledge. There will be an
enormous opportunity to talk to our customers about the
entire ecosystem that serves the customer—how to help cost-
optimize, generate revenue, or create competitive advan-
tage.” In addition, he said, “we will offer all of the compo-
nents that make the shift to multichannel retail possible.”
The transaction, which is subject to regulatory and JDA
shareholder approval, had not closed at press time but was
expected to be completed by year’s end.
