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JDA Software and RedPrairie Complete Their Merger

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Readers may recall that back on November 1st, privately held supply chain execution technology provider RedPrairie and publically held JDA Software announced intent to merge into a combined supply chain planning and execution powerhouse with revenues extending beyond $1 billion. At the time of the merger announcement, the tender offer was valued at $1.9 billion, a considerable premium.

Today features a press release announcing the completion of this merger which is somewhat ahead of schedule.

The new combined company will adopt the JDA brand name and will be led by Hamish Brewer, the former CEO of JDA Software.  Alok Singh, will assume the role of chairmen for both companies.  Headquarters for the combined company will be in Phoenix Arizona, the former home of JDA Software. According to today’s press release, the two companies have essentially completed an integration plan and the actual integration process will begin in January. An integrated product roadmap is expected by the second quarter to coincide with a scheduled combined customer user conference on May 5, 2013.

In our initial impressions commentary regarding this merger, Supply Chain Matters advised our readers to context this merger as a private equity based financial engineering strategy where two companies are brought together under a private ownership structure to form a different mission and set of objectives. In a simplistic sense, it is a private equity based playbook strategy that allows enhancement of the best of both companies, a leveraging of cost control synergies and a re-positioning of mission, goals and objectives. Both prior companies had a history of multiple acquisitions, with lingering integration needs.  Now, that task becomes more complex.

The potential carrot is a combined suite of supply chain planning and execution support capabilities that can be tailored for existing and new retail, consumer goods and industrial manufacturing clients as well as the broader market. Other interesting potentials could come from this merger, but that remains to be seen once the new product roadmap is shared. We trust that the combined product roadmap will have realistic goals and expectations given the tasks and challenges at-hand.

The obvious other open question is whether layoffs or other group consolidations will ensue as a result of combining corporate or product management functions.

No doubt, existing customers from both former companies can expect a JDA sales representative to come calling in the New Year to speak about new and exciting potentials.

We will all wait and see.

Bob Ferrari

 

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