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
