Translated by

Blue Yonder

Company

Information technologies
Since 1985
Europe
14400 N. 87th Street Scottsdale


width=200px
(before JDA Software)

Owners:
New Mountain Capital
Blackstone Group


400px

Owners

History

2020: Change of the name: Blue Yonder instead of JDA Software

On February 11, 2020 JDA Software announced rebranding: the company began to be called Blue Yonder — in honor of the developer of artificial intelligence technologies for retail which was absorbed earlier.

As explained in JDA Software, change of a name happened in order that it was better approved with cloud transformation and plans for product output of the company.

JDA Software announced rebranding: the company began to be called Blue Yonder — in honor of the developer of artificial intelligence technologies for retail which was absorbed earlier
JDA Software announced rebranding: the company began to be called Blue Yonder — in honor of the developer of artificial intelligence technologies for retail which was absorbed earlier

Within rebranding the new slogan — Fulfill Your Potential is developed. It, according to in the company, reflects its mission for expansion of opportunities of each organization and the person on the planet for implementation of their complete potential. The new website blueyonder.com is also started.

«
After long reflections and researches we came to a conclusion that the brand of our company should reflect the main conversions which happened in our business lately. We outgrew the name, and it is time for us to rename the company — the CEO of Blue Yonder Girish Rishi said.
»

According to him, by February, 2020 the company has 330 clients and partners worldwide.

Add to the companies that brand development of JDA and transition addressed to Blue Yonder supports huge influence of artificial intelligence and machine learning on all supply chain, logistics and retail markets even more.

The marketing and advertizing campaign devoted to start of a new brand will begin in the second quarter and will last for all 2020.[1]

2018

Blue Yonder purchase

On August 7, 2018 JDA Software announced closing of the transaction on Blue Yonder acquisition. The financial component of the agreement of the company did not begin to be opened. JDA Software noted that this purchase will accelerate development of product capabilities of Autonomous Supply Chain regarding integration with the smart systems and data for automation of acceptance of the correct and profitable business solutions.

Old JDA Software logs
Old JDA Software logs

Plans of expansion of business in Russia

In April, 2018 corporation JDA Software Group, Inc. announced expansion of the presence in Russia thanks to creation a partner ecosystem in the region. Partners of the company are members of JDA Partner Advantage Program which helps to implement the products JDA in global market. The solutions JDA are used by the possibilities of methods of data processing, analytics and machine learning technologies allowing the companies to optimize logistics chains, to increase the speed of entry into the market, to create competitive advantage and to raise the service level of clients.

2016

Blackstone and New Mountain Capital purchased shares in JDA Software

In October, 2016 it was announced closing of the transaction on investment of $575 million into JDA Software. Funds invested in software developer Blackstone and New Mountain Capital. What shares in JDA Software they received according to the results of the transaction, is not specified.

Attraction of $570 million and rumors about sale to the company in the Honeywell group

In August, 2016 JDA Software announced the investment attraction, the exceeding half a billion dollars. It it was announced several days later after it became known of the preparing sale to the company.

On August 19, 2016 JDA issued the press release in which told about conclusion of an agreement with funds, managed investment companies Blackstone and New Mountain Capital (the largest JDA in the owner). According to the arrangement, JDA will carry out recapitalization of the company by private investment of $570 million into capital stock.[2]

JDA Software attracted $570 million and prepares for sale
JDA Software attracted $570 million and prepares for sale

According to The Wall Street Journal (WSJ), New Mountain Capital offered Blackstone a 40 percent share in JDA on condition of return of 7.5% of stocks in the future. The source of the edition noted that the outcome of the transaction will depend on results of negotiations of JDA with industrial conglomerate Honeywell.

In the middle of August, 2016 announced WSJ that Honeywell is close to purchase of JDA for $3 billion taking into account a debt of the last. Earlier announced Reuters agency plans of the companies to conclude this bargain, later it distributed data on plans of Blackstone on investment into JDA.

Wants to let JDA attracted with $570 million to development of innovations in the products, creation of cloud solutions of new generation, development and improvement of already released software. Besides, a part of means will go for repayment of debts and decrease in payments for percent by $70 million a year. Closing of the investment transaction with New Mountain Capital and Blackstone is planned on the fourth quarter 2016.

According to the informed interlocutors of WSJ, sale of shares of JDA of Blackstone company was one of the options considered by New Mountain Capital for reduction of debt of vendor. By August, 2016 JDA saved up about $2 billion debts that in nine times more profits of the company before interest contribution, taxes, wear and depreciation.

At this time the company proposes solutions for planning of deliveries and management of them at all stages of a chain — from supply with materials and production organization before delivery, distribution, warehousing and sale of finished products. As of August, 2016 JDA have about 4 thousand clients in the different industries, in such as retail and production of convenience goods. The company has a representation in Russia.

2012

Growth of revenue to $1 billion

By 2008 revenue of JDA grew to 384 mln. dollars, and in the 2011th, after purchase of the supplier of the SCM products i2 Technologies close in terms of the scope of (who had representation and in Russia), it reached 691 mln. dollars. And at last, in 2012 turnover of the company exceeded a symbolical boundary and reached[3]

The company is sold to New Mountain Capital fund for $1.9 billion

JDA was redeemed by private investment firm New Mountain Capital for 1.9 billion dollars in 2012. Then the new owner integrated JDA with RedPrairie company.

IBM and Epicor conduct negotiations on purchase of JDA

IBM, Epicor and other vendors can become owners of the developer of systems for supply chain management of JDA. Analysts said it at the end of October, 2012 after it became known of active search of potential buyers from JDA.

According to the report published by Reuters, the transaction is at an intermediate stage: already there is a number of the possible buyers who showed active interest in JDA. In addition to vendors there are also "strategic buyers": these are private investment firms to which this asset can be also profitable.

Representatives of JDA still officially did not comment on this information. Some analysts called the solution JDA big surprise. For example, the expert of Ferrari Consulting and Research Group Bob Ferrari who is at the same time the author of the blog Supply Chain Matters considers that "all indicators till the last moment demonstrated that the company intends to operate on the market independently".

Some of motives of sale analysts call, for example, desire of JDA to offer the companies of retail not only functionality in the field of automation of supply chains, but also other relevant processes, for example, of merchandising. Besides, market observers believe, JDA can have intentions on promotion of cloud solutions that alone it is not able to make.

The analyst Ray Wang from Constellation Research reminded that software of JDA includes a stack of technologies Microsoft .NET. From this point of view the circle of buyers of JDA can be wider and turn on, for example, Aptean or Epicor which can play on this advantage. According to him, even separately Microsoft can be interested in acquisition of JDA and inclusion of software of the company in the line of Dynamics ERP. However, according to him, it should be taken into account also the fact that Microsoft avoided merger of vendors of the back office systems earlier, more concentrating in this plan on development of front office CRM tools.

In retail also Oracle and IBM, by words Vanga have strong consulting practice. Interest in JDA can show also Infor, one of the largest industrial ERP of vendors. The cost of the transaction at the same time can be rather high as only for 2011 financial year of JDA earned about $700 million.

Opening of office in Russia

The JDA Software Group company announced opening of the first office in Russia. The decision on opening of office is made to meet due to the need the increased demand for solutions and services of JDA for the organization of supply chains and retail in the region. The new office JDA is located in Moscow. The office of the company will service the existing and potential clients in Russia and the CIS, including also Ukraine, Kazakhstan, Azerbaijan, Georgia and Belarus. Earlier business of JDA in these countries was performed from abroad by means of strategic partners of the company in Russia. Nevertheless, JDA will continue to cooperate closely with strategic partners in Russia further.

2011: Delivery of RMS solutions for transport companies

JDA sells specialized solutions for transport companies, including — for management of profitability (Revenue Management System). The systems of this class are directed to the automatic analysis of market conditions, demand and the operating sales pattern of passenger and freight transportation that allows to manage more effectively pricing, by the existing offers and by that to maximize income gained by transport company.

Solutions of the class RMS allow to increase demand forecasting accuracy, to accelerate response to market changes, to increase efficiency and accuracy of business forecasting. Besides a system allows to exercise full control and resource planning of transport company, providing tools which are capable to increase its profitability as much as possible. In particular, it will promote increase in income due to exact demand forecasting on each run and pricings of passenger and freight transportation.

The main contribution to revenue of the company is made by technical support (266 mln. dollars) and consulting (262 mln. dollars), and at all not sales of licenses (141 mln. dollars).

Clients of the company are more than 6 thousand enterprises worldwide and in the most different spheres of economy: retail, wholesale, metallurgy, transport and logistics. The annual turnover of the company is at the level of 700 mln. dollars, growth of business at the end of 2011 — 9%. Business of JDA Software Group grows including due to acquisitions — for the last 12 years 11 companies are purchased.

For 2011 in EMEA region more than 60 clients of JDA — both new, and already existing — implemented solutions of the company. The scope of the existing users of the solutions JDA also increased. Among the new and existing clients there is JDA in EMEA region — Dohle Handelsgruppe, Fromageries Bel, Gloria Jeans, Lenta hypermarket, Magnitogorsk Iron and Steel Works, Marks & Spencer, retail network of wholesale Metro, Poundland Limited, Shoprite Checkers (PTY) Ltd., Tata Steel Europe, Woolworths South Africa and also X5 Retail Group.

2010: The forecast of revenue at the end of year in the amount of $590-625 million

The JDA Software company published the forecast of financial results for 2010. Taking into account the acquisition of i2 Technologies company which came to the end on January 28, 2010 the financial forecast includes revenues of the absorbed company.

According to the forecast, revenue of JDA Software company for all year which will come to the end on December 31, 2010 will make 590-625 million dollars. Sale of licenses in 2010 should bring the companies of 125-135 million dollars. Revenue of JDA Software will include results of i2 Technologies company in 11 months.

The forecast of financial results contains data of two integrated companies. In 2009 JDA Software gained income in the amount of 385.8 million dollars. Due to the acquisition the i2 Technologies company did not report results of the fourth quarter 2009, however taking into account results of nine months for all 2009 revenue of the company presumably made 220-230 million dollars.

According to Hamish Brewer (Hamish Brewer), CEO JDA Software, creation of the leading company in the market goes according to the drawn-up plan. After completion of the transaction with i2 Technologies this confidence increases. The company expects to get profit on merge in the first year after completion of the transaction. JDA Software is sure that this acquisition will have a positive impact on financial results of the company.

The JDA Software company will not refuse clients of i2 Technologies and contracts for maintenance of its systems. Mr. Brewer compared integration to i2 Technologies with merge to Manugistics company in 2006.

Acquisition of Manugistics company increased the JDA Software size almost twice. Also as well as in case of a company takeover of i2 Technologies, Manugistics had the developed technologists, but experienced difficulties on sales.

One of the main differences between these acquisitions consists in expansion of a market share, brought each company. The transaction with Manugistics brought to JDA Software presence at the processing industry. The products i2 Technologies are traditionally focused on discrete production.

According to Mr. Brewer, the changes connected with acquisition will concern also sales pattern. I2 Technologies company traditionally concluded a small number of large deals and gained a part of income from sale of licenses and rendering services. Over time JDA Software intends to conclude more average bargains in addition to large contracts and to have more predictable income.

Business development is supposed by increase in income from sale of licenses and maintenance. Also Mr. Brewer sees opportunities for sales growth in sales increase of managed services, deployment of solutions on the SaaS model and due to IT outsourcing services.

2008

The transaction on purchase of i2 Technologies collapsed

The i2 Technologies company terminated the agreement on merge dated on August 10, 2008 to JDA Software group and its subsidiary company Iceberg Acquisition, and expects to receive from JDA Software compensation in the amount of 20 million dollars within three working days. The delay about which asked JDA Software and which was not provided to it did not allow the company to close the deal. The management of JDA Software refused  to agree to disclosure of any information  explaining the circumstances which led to  a rupture of arrangements.

According to Jackson L. Wilson (Jackson L. Wilson Jr.), the chairman of the board of directors i2 Technologies, the company has strong financial positions in the market and, despite failure of the transaction on consolidation with JDA Software, intends to continue  to work and support the clients.

According to Pallab Chatterzhi (Dr. Pallab Chatterjee) the chief executive of i2 Technologies, in a difficult economic situation of a SCM system are crucial for an effective business activity of the enterprises. Therefore now technologies and experience of i2 Technologies which is concentrated on development of innovative solutions and providing the clients with them are necessary for the companies.

As a result of a rupture of the agreement the share value of i2 Technologies fell up to 5.90 dollars for the stock from 6.35 dollars of trade in the morning, and the stocks JDA Software rose 19 cents and  are estimated at  12.76 dollars.

The declaration of purchase of i2 Technologies for $346 million

In August, 2008 JDA Software, one of the leading SCM vendors, expressed the intention to purchase i2 Technologies company. Transaction amount which should be complete in the IV quarter 2008 will be about 346 million dollars. The integrated customer base, as expected, will exceed 6,000 companies, and the number of employees will make about 3,000 people.

For the JDA group it already the eleventh large acquisition for the last 10 years, and on still most considerable absorption there was a purchase in May, 2006 of Manugistics company for 211 million dollars. Believe in JDA that have already sufficient experiment on "embedding" of acquired companies in own business structure that is proved by successful promotion of developments of Manugistics, and now accession of i2 Technologies is a logical and natural step for the company.

According to the CEO of JDA Hamish Brewer, i2 Technologies was a key player in the market of SCM within the last 20 years, and its acquisition will allow JDA to double the target market and to include in it the companies working in the field of discrete production in addition to already available clients in the field of continued production, retail and transportations. And if Manugistics acquisition became for JDA the "revolutionary" step which considerably changed its business and promoting turn towards automation of production companies in due time, then the current absorption of i2 Technologies is not so much reformative how many increasing the volume of presence of the company on already mastered the market. So, upon termination of the transaction the customer base of the company will total about 1500 retailers and 4500 production and distribution companies.

The gross annual income of the united company will make about 635 million dollars that, according to experts, considerably brings closer it to such "titans" of the market of automation as SAP and Oracle. Nevertheless, some analysts express doubt that the company will be able to invest enough means to give support to all already available customer base of i2 Technologies in necessary volume. Users of i2 Technologies, experts consider, showed enough patience within several last years, expecting permission of a difficult financial situation in which there was their vendor. And now they have the right to expect that their patience will be wholly rewarded. And if the new owner is not able to offer them all demanded services in the nearest future, then these companies will probably begin to look for replacement to the current supplier. 

It is quite possible what as a new SCM povaydera they will select one of ERP vendors which are subject also recently to a tendency to consolidation of assets and developments and therefore they can offer much more full range of solutions, including the integrated applications for the business analysis and increase in business performance which were also demanded by the production and trading companies. Nevertheless, automation of logistics, including warehouse and transport, still was quite independent and specialized area in which ERP solutions have no sufficient functionality yet. Therefore in this sphere it is still possible to expect rather an aggravation of the "internal" competition – between different specialized SCM platforms, for example, between JDA, Manhattan Associates and RedPrairie, experts consider.

1996-2006

JDA went public in 1996.

In 1998 JDA purchased software company Arthur Retail, in the 2000th — solution provider on planning of floor spaces of Intactix, in the 2006th — E3 Corporation company and Manugistics known in our country.

1985: Foundation of the company

JDA Software was founded in 1985 (the headquarters is in Arizona).

Notes