JDA Software Rises 17% After Buyout Announcement

JDA Software

jumped 17 percent on Thursday after the company announced that it has agreed to be acquired by privately held RedPrairie for $45 per share. The total value of the deal is around $1.94 billion. RedPrarie is also a software maker and the combined entity will generate revenues in excess of $1 billion. JDA Software shares closed the session just below the $45 deal price at $44.76. The buyout offer represents a 18 percent premium to the stock's prior day closing price. It also represents a 33 percent premium to the stock's price on October 26, 2012, which was the day before market rumors surfaced stating that the company was exploring a sale. JDA Chief Executive Hamish Brewer said, "This is a strong combination of two leading companies with highly complementary product suites." He added that "This transaction generates tremendous value for JDA shareholders, offering them a meaningful premium for their shares." Brewer will be the CEO of the combined company while RedPrairie CEO Michael Mayoras will remain on the board of directors. JDA is a provider of enterprise software services and solutions which enable planning, optimization, and execution of merchandising and supply chain processes. RedPrarie offers enterprise solutions to ensure execution, visibility and collaboration between manufacturers, distributors, retailers and consumers. The company provides its customers with a suite of supply chain and retail solutions. 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."