RedPrairie to acquire JDA Software
Furniture Today Staff -- Furniture Today, November 12, 2012
ATLANTA - RedPrairie said it has agreed to acquire fellow supply chain software and services provider JDA Software in a deal valued at about $1.9 billion.
Officials said the deal will create one of the largest global software companies with combined annual revenues of more than $1 billion.
They said in a release that the merger, which JDA's board has approved, "will deliver unique capabilities that retailers and manufacturers require to meet the demands of hyper-connected consumers" through a variety of global supply chain management tools.
RedPrairie has been a key provider of technology to industries including home furnishings.
Hamish Brewer, president and CEO of JDA, is expected to lead the combined companies as CEO.
RedPrairie CEO Michael Mayoras will remain on the board of the company, along with other current RedPrairie board members. Hamish also is expected to join the board, officials said.
RedPrairie said that "entities affiliated" with the company have agreed to pay $45 per share for JDA's stock, representing a 33% premium over the stock price on Oct. 26, before rumors surfaced that JDA was exploring a sale.
"This transaction generates tremendous value for JDA shareholders, offering them a meaningful premium for their shares," said Brewer. "This is a strong combination of two leading companies with highly complementary product suites."
Alok Singh, chairman of RedPrairie's board, said, "We believe that this combined company will deliver a strong ROI and extraordinary customer value for both B2B and B2C enterprises."
The transaction is expected to close by the end of the year and will be funded with fully committed debt financing from Credit Suisse, officials said. In addition to contributing the current equity capital of RedPrairie, New Mountain Capital will also commit additional new cash equity to fund the transaction.