RedPrairie, which has an office in the Town of Brookfield, has entered into a definitive agreement to acquire Scottsdale, Ariz.-based JDA Software, creating one of the largest global software companies with combined revenues of over $1 billion.
Under the terms of the merger agreement, entities affiliated with RedPrairie will execute a cash tender offer to acquire all outstanding shares of JDA common stock for $45 per share. The offer price represents a 33 percent premium to JDA’s stock price on Oct. 26.
The transaction has a total enterprise value of approximately $1.9 billion. The board ofdirectors of JDA has approved the transaction,.
Following completion of the transaction, Hamish Brewer, chief executive officer of JDA, is expected to be the CEO of the merged company.
RedPrairie CEO, Michael Mayoras will remain on the board of the combined company.
“This transaction generates tremendous value for JDA shareholders, offering them a meaningful premium for their shares,” Brewer said. “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.”
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.”
The tender offer and merger are subject to customary closing conditions.
A RedPrairie spokeswoman said it was too early to determine the name of the combined company or assess how the merger will affect the firm’s Wisconsin operations.
