JDA Software to acquire advanced supply chain specialist Manugistics

US-based demand and supply chain management software developer JDA has acquired advanced supply chain optimisation systems firm Manugistics. This is JDA’s largest acquisition, and will forge a company with combined revenues of $390m and around 5,550 customers. The deal struck values Manugistics at approximately $211 million, or $2.50 per share, and is a cash transaction. Financial backing to the tune of $50m is being provided by Thoma Cressey Equity Partners. According to JDA CEO Hamish Brewer, the Manugistics acquisition will create new sales opportunities for JDA and Manugistics throughout the demand chain. “No other software company will be able to offer a similar breadth and depth of solutions to the very large, vertically focused demand chain market,” he says. “This deal is as close to a perfect match as you can get for an acquisition of this size… Manugistics brings advanced new optimisation solutions to JDA’s retail customers and substantially expands JDA’s presence with consumer goods manufacturers and wholesalers. This combination translates into substantial synergies that will transform JDA’s earnings power over time,” says Brewer. “After extensive due diligence, we believe that merging with JDA is the best path forward for all of our stakeholders,” says Manugistics CEO Joe Cowan. “By joining with JDA we can ensure that our customers will be able to count on a supply chain leader with the financial strength to extend and enhance our best of breed solutions and services globally.” Meanwhile, Manugistics arch-rival i2 has been quick to offer existing Manugistics customers a chance to mover to i2 Next-Generation supply chain management software at a discounted price. “We understand that many companies may be feeling uncertain about the future of their investment in Manugistics applications, especially those companies outside of retail, who may be concerned that they could be left behind as others advance to the next generation of supply chain management,” says i2 CEO Michael McGrath. “We believe that now may be the appropriate time for them to look to i2 as an alternative partner for the future of their supply chains, so we are providing them with a specific opportunity to upgrade to the next generation of solutions with us. This upgrade opportunity allows them to bridge to i2’s next-generation supply chain solutions by building upon their investment in Manugistics previous generation applications.” The deal is that for the rest of 2006, i2 will provide free services for integration of Manugistics applications to the i2 Agile Business Process Platform.