JDA Blackstone Spotlight

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BLACKSTONE to make equity investment in JDA SOFTWARE

 

Financial Information

  • Equity Investment
$570 Million
  • Equity Stake
40%

 

Equity Investment to recapitalize JDA’s debt structure and spurn Honeywell Acquisition

  • Backed by New Mountain Capital, JDA drove a series of acquisitions to scale and consolidate market
Date Buyer Target EV ($mm) Business Description
12/21/2012 New Mountain Capital / RedPrairie JDA Software $2,235.00 Supply Chain Management (SCM) Suite, Combined company kept name as JDA
08/13/2012 RedPrairie RedPrairie N/A Mobile Workforce Management
07/11/2012 RedPrairie Planora Inc N/A Planning and Scheduling Optimization
02/02/2011 RedPrairie Escalate Retail N/A E-commerce
02/30/2010 New Mountain Capital RedPrairie $1,900.00 Private Equity buy-out
01/28/2010 JDA Software i2 Technologies $532.00 SCM software
07/21/2006 RedPrairie BlueCube Software N/A Retail Solutions
  • The resulting debt threatened JDA’s ability to reinvest in R&D and created a landscape ripe for capital investment
  • New investment will be used to retire JDA’s current debt
    • Reduce interest expense by $70mm a year
    • Remaining Debt has no operating covenants and 1st maturity in 2023

 

JDA Software in good position to capitalize on growth in SCM Space

  • JDA is the only company named a leader in all five Gartner Magic Quadrants covering supply chain and retail merchandising solutions
  • JDA partner with Google’s Cloud solutions to eat away at global competitors Oracle and SAP
    • JDA Retail.Me introduced to pioneer Retail Planning on cloud network
  • SCM firms are looking to consolidate niche assets to expand end-to-end suite solutions (momentum in M&A)
  • Internet of Things (IoT), Big Data/Analytics, & E-commerce growth set to drive demand for SCM solutions

 

Honeywell, GE, & other Manufacturing Equipment makers set sights on Software Integration

  • Connected equipment will enable manufacturers to collect data and better service their products, driving more long-term service revenue from customers
  • These companies look to Supply Chain Management software to connect data and decision making.
  • Big conglomerates set a clear path for exit for SCM firms looking to capture value