RedPrairie and JDA Software are merging in a $1.9 billion deal that will create a major player in the market for supply chain management applications.
Alpharetta, Ga.-based RedPrairie is offering $45 per share to acquire Scottsdale, Ariz.-based JDA Software Group. The companies said that represented a 33-percent premium above JDA's Oct. 26 stock price, the day before rumors that JDA was exploring a sale pushed up its stock price.
RedPrairie develops supply chain applications, including warehouse and transportation management software; workforce management applications; store operations software such as inventory management apps; and all-channel commerce software. The company's products are in use at more than 60,000 customer sites.
JDA's supply chain management, merchandising and pricing software is used by more than 2,700 companies.
The companies expect to complete the deal by the end of 2012, subject to approval by antitrust regulatory authorities and fulfillment of the condition that at least 79 percent of JDA's outstanding shares are tendered.
Following the merger the new company, which will take the RedPrairie name, will have annual sales of more than $1 billion. It will compete with supply chain management software from Oracle, SAP, Infor and other vendors.
JDA president and CEO Hamish Brewer will become CEO of the newly combined companies. Current RedPrairie CEO Michael Mayoras will remain on the board of directors of the new entity.
"This is a strong combination of two leading companies with highly complementary product suites," Brewer said in a statement. "It will give businesses the power to better manage global commerce through a new world of capabilities. 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."
"We believe that this combined company will deliver a strong ROI and extraordinary customer value for both B2B and B2C enterprises," said RedPrairie chairman Alok Singh, in a statement. "It will be the single best source of software products and domain expertise for manufacturers and retailers. Both companies share a history of innovation including, JDA's leadership in cloud offerings and RedPrairie's strength in workforce management and e-commerce."
PUBLISHED NOV. 2, 2012