RedPrairie Acquiring JDA Software For $1.9 Billion

Posted Nov 1, 2012

RedPrairie has announced today that they are acquiring JDA Software Group for $1.9 billion in cash.  The two companies will combine to make software that will help companies better manage their supply chain.  RedPrairie will be paying $45 per share through a tender offer, which is a 33% premium to JDA’s price on October 26.  This price is 16% above JDA’s record-high stock price.

RedPrairie is owned by New Mountain Capital.  New Mountain bought RedPrairie in 2010.  New Mountain is providing cash to finance the deal along with Credit Suisse.  The combined company will be led by JDA CEO Hamish Brewer.  Mr. Brewer will be made a board of director.

The rest of the board of directors will be compromised of RedPrairie’s current directors including Tim Pawlenty, the former governor of Minnesota and Michael Mayoras (RedPrairie CEO).

?This transaction generates tremendous value for JDA shareholders, offering them a meaningful premium for their shares,? stated Mr. Brewer. ?This is a strong combination of two leading companies with highly complementary product suites.?

New Mountain managers $9 billion in across their funds.

New Mountain, which manages about $9 billion, bought RedPrairie as part of a focus on business software. And in JDA, it is acquiring a specialist in supply chain logistics.  RedPrairie was advised by Greenhill & Company, Credit Suisse, and law firm Fried, Frank, Harris, Shriver & Jacobson.  JDA was advised by JPMorgan Chase and DLA Piper.

JDA was advised by JPMorgan Chase and the law firm DLA Piper, while its board was counseled by Cravath, Swaine & Moore.