| Abstract: | Combination would create a $390 million "powerhouse" serving manufacturers, distributors, and retailers across the demand chain. |
After years of struggling to remain afloat, Manugistics Group Inc. will get a chance to be resuscitated courtesy of JDA Software Group Inc., which plans to acquire the beleaguered supply chain management software provider and make it a strategic cog in JDA's global demand chain market plans.
JDA (Scottsdale, AZ) has signed a definitive agreement to purchase Rockville, MD-based Manugistics for approximately $211 million in cash, or $2.50 per share. The acquisition, which is expected to close sometime before the end of the third quarter, would create a company with revenues in excess of $390 million and more than 5,550 customers. In connection with the merger, JDA announced that Thoma Cressey, a backer of enterprise software companies, plans to invest $50 million in the combined entity.
The JDA and Manugistics software lines have tremendous synergies, analysts said, and focus on the demand chain market, where the two currently have 100 common customers, company officials noted. But while JDA provides optimization and analysis software used by retailers, distributors, and wholesalers, the Manugistics portfolio extends its reach further into the supply chain and serves up additional advanced optimization capabilities, they explained. Manugistics also delivers access to new target audiences -- most notably, consumer goods manufacturers and wholesalers -- and offers highly coveted price optimization and transportation management capabilities that are currently not part of the JDA portfolio.
[Click to continue]
 |
|
|
|