RedPrairie Ups Ante with Jda Software Group Inc (JDAS) Acquisition

Jda Software Group Inc (NASDAQ:JDAS) is up over 17.4% today, hitting a new 52-week high of $44.81, after news that the maker of supply management software is to be acquired by the privately-held RedPrairie for $45 per share, in a roughly $1.9 billion cash deal. The offer, which represents a 33% premium to Jda Software ‘s closing price on Friday, comes after the company reported lower than expected third quarter results.
RedPrairie’s acquisition of Jda Software Group Inc (NASDAQ:JDAS) means that CharlesDe Vaulx’s International Value Advisers and Richard Blum’s Blum Capital Partners profited significantly from the deal. De Vaulx in particular had increased his firm’s stake in the company significantly during the second quarter. But, it also means that RedPrairie is in a better position to compete against larger competitors like Manhattan Associates, Inc. (NASDAQ:MANH)Oracle Corporation (NASDAQ:ORCL), inc.(NYSE:CRM) and Microsoft Corporation (NASDAQ:MSFT). We like Oracle as well as Microsoft, especially with its recent developments like Surface, but that doesn’t mean that RedPrairie can’t gain some ground with its Jda Software acquisition.
RedPrairie already counts amongst its clientele such big names as Foot Locker, Unilever and Panasonic. Merging with Jda Software Group Inc (NASDAQ:JDAS) means that it can also count amongst its numbers companies like British Airways, Caterpillar and IBM. Getting a foot in the door with big names like that is a major benefit for the company, to say nothing of the synergies and complements between the two companies.
“This transaction generates tremendous value for JDA shareholders, offering them a meaningful premium for their shares,” saidHamish Brewer, president and CEO of JDA. “This is a strong combination of two leading companies with highly complementary product suites. It will give businesses the power to better manage global commerce through a new world of capabilities. The combined company will have a unique ability to address our customers’ increasingly complex needs with a full spectrum of solutions for planning and execution across the entire value chain.”
Chairman of the Board of RedPrairie, Alok Singh commented, “We believe that this combined company will deliver a strong ROI and extraordinary customer value for both B2B and B2C enterprises. It will be the single best source of software products and domain expertise for manufacturers and retailers. Both companies share a history of innovation including, JDA’s leadership in cloud offerings and RedPrairie’s strength in workforce management and e-commerce.”
RedPrairie CEO, Michael Mayoras said, “This merger establishes a company perfectly suited to meet the evolving demands of the ‘always-on’ mobile consumer. Both companies have historically demonstrated their leadership in supply chain innovation. I look forward to committing myself to the success of this combined company because I believe it will provide extraordinary customer value.”