JDA expands retail software suite with acquisition of Manugistics
JDA Software Group Inc. will pay $211 million in cash for Manugistics Group Inc., one of the early providers of web-based supply chain software with a customer base including Sears, Roebuck and Co., L.L. Bean and Limited Brands.
“Manugistics brings advanced new optimization solutions to JDA’s retailer customers and substantially expands JDA’s presence with consumer goods manufacturers and wholesalers,” said JDA CEO Hamish Brewer.
Thoma Cressey Equity Partners is expected to contribute to the deal by investing $50 million in JDA.
Manugistics yesterday said it expects to report net income of $2.5 million to $3.5 million on revenue of $44 million to $46.5 million for the fourth quarter ended February 28, 2006, compared to a net loss of $17.2 million on revenue of $45.2 million in the year-ago quarter. It plans to report final full-year and Q4 results on May 11.
In a report on the acquisition plan, AMR Research Inc. said the best market opportunity it offers JDA is the development of a stronger transportation management system integrated with the JDA suite of business software.
In other areas, including merchandising optimization and replenishment, JDA will need to rationalize how JDA and Manugistics software can work together, AMR said.
In addition, JDA will also need to address how the Manugistics web-based J2EE platform will integrate with JDA’s Microsoft-based .Net platform, AMR said.
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