Blue Yonder

History

2021

Panasonic completes Blue Yonder acquisition

Panasonic Corporation on September 21, 2021 announced to TAdviser the completion of the acquisition of Blue Yonder, the developer of integrated digital platforms for logistics and fullfilm. Panasonic received the remaining 80% stake in Blue Yonder in addition to the 20% purchased in July 2020. Investments in Blue Yonder thus amounted to 8.5 billion US dollars.

Panasonic has completed its takeover of supply chain management software supplier Blue Yonder < br/> Source photo: panasonic-kondicioner.ru

This step confirms the unity of views of Panasonic and Blue Yonder on the concept of a self-driving supply chain. Combining Panasonic sensor technologies and peripherals with Blue Yonder solutions for planning, manufacturing and commerce based on artificial intelligence and machine learning, customers will be able to create smarter digitalized strategies for e-commerce, refurbish retail stores, warehouses, transportation and jobs. This comprehensive offering gives customers unlimited visibility, control, and real-time operations management capabilities, superior customer service, and revenue growth.

Given that supply chain disruptions are increasing in frequency and impact information , transparency in operations that enable real-time operational decisions is also becoming a priority for companies. Panasonic technologies, complemented by Blue Yonder's artificial intelligence and machine learning capabilities, will allow you to combine IoT devices and AI a platform for faster collection and analysis. data Panasonic resources and Blue Yonder innovations will accelerate the development of the tools customers need to predict and prevent failures, as well as increase self-management of supply chains. The acquisition of Blue Yonder by Panasonic indicates what awaits us in the future, explained industry analyst Simon Ellis, vice president of programs at IDC.

As noted in the company, this deal strengthens Panasonic's own digital transformation and customer orientation. On April 1, 2022, the Japanese corporation will be reformed into a holding company and will focus on strategic business areas in key areas, including modernization and automation of supply chains. The transformation will enable Panasonic to make a feasible contribution to building a sustainable society by making better use of limited global resources.

The Blue Yonder brand will be retained and the business will operate within Panasonic Connected Solutions. Blue Yonder CEO Girish Rishi and the entire leadership team will remain with the company.

Panasonic bought Blue Yonder for $7.1 billion

At the end of April 2021, Panasonic announced the purchase of the American supplier of supply chain management software Blue Yonder from Blackstone Group and New Mountain Capital. The deal is expected to accelerate the development of Panasonic's software business.

According to The Wall Street Journal, Panasonic already owns a 20% stake in Blue Yonder, the remaining share of the Japanese company will buy back from New Mountain Capital and other funds managed by the Blackstone Group for $5.6 billion. Given the need to pay off the resulting debts, the total value of the transaction will be $7.1 billion.

Panasonic acquired Blue Yonder

Panasonic, shareholders of New Mountain Capital and Blackstone agreed to the deal. The Blue Yonder brand will be retained, but will operate under the auspices of Panasonic Connected Solutions, led by CEO Yasuyuki Higuchi. Panasonic said the acquisition will be completed by the end of 2021, subject to approval from all regulators.

The need for more intelligent, autonomous and peripheral supply chains has increased dramatically due to the COVID-19 pandemic, the growth of e-commerce and data dissemination, the companies said. This acquisition strengthens Panasonic's portfolio and will accelerate the overall tasks of companies along the autonomous supply chain.

Gartner analysts in 2020 rated Blue Yonder as the third largest supplier of supply chain management software, based on the company's 2019 revenue, after SAP SE and Oracle.

This is a good direction for Panasonic to enter the US market, "said Bloomberg Intelligence analyst Masahiro Wakasugi. But the assessment is "not cheap, and we have to wait to see how their development will go after the merger to comment on it."[1][2]

2020: Name change: Blue Yonder instead of JDA Software

On February 11, 2020, JDA Software announced a rebranding: the company became known as Blue Yonder - in honor of the developer of artificial intelligence technologies for retail, which was absorbed earlier.

As explained in JDA Software, the name change occurred so that it was better coordinated with the cloud transformation and plans for the release of the company's products.

JDA Software announced the rebranding: the company became known as Blue Yonder - in honor of the developer of artificial intelligence technologies for retail, which was absorbed earlier

As part of the rebranding, a new slogan has been developed - Fulfill Your Potential. It, according to the company, reflects its mission to empower every organization and person on the planet to realize their full potential. A new site has also been launched blueyonder.com.

After much thought and research, we have come to the conclusion that our company's brand should reflect the major transformations that have occurred in our business recently. We have outgrown our name, and it's time for us to rename the company, "said Blue Yonder CEO Girish Rishi.

According to him, by February 2020, the company has 330 customers and partners around the world.

The company adds that the development of the JDA brand and the transition to the Blue Yonder name further supports the huge influence of artificial intelligence and machine learning throughout the supply chain, logistics and retail markets.

The marketing and advertising campaign dedicated to the launch of the new brand will begin in the second quarter and will last throughout 2020.^[3]

2018

Buying Blue Yonder

On August 7, 2018, JDA Software announced the closure of the acquisition of Blue Yonder. The company did not disclose the financial component of the agreement. JDA Software noted that this purchase will accelerate the development of the capabilities of the Autonomous Supply Chain product in terms of integration with smart systems and data to automate the adoption of correct and profitable business decisions.

Old Leo JDA Software

Plans to expand business in Russia

In April 2018, JDA Software Group Corporation, Inc. announced the expansion of its presence in Russia thanks to the creation of a# ttop partner ecosystem in the region. The company's partners are members of the JDA Partner Advantage Program, which helps implement JDA products in the global market. JDA solutions take advantage of data processing, analytics, and machine learning technologies that enable companies to optimize supply chains, increase entry rates, create competitive advantage, and improve customer service.

2016

Blackstone and New Mountain Capital buy shares in JDA Software

In October 2016, it was announced the closure of a deal to invest $575 million in JDA Software. Blackstone and New Mountain Capital invested in the software developer. What shares in JDA Software they received following the results of the transaction is not specified.

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

In August 2016, JDA Software announced the attraction of investments exceeding half a billion dollars. This was announced a few days after it became known about the upcoming sale of the company.

On August 19, 2016, the JDA issued a press release in which it spoke about concluding an agreement with funds managed by investment companies Blackstone and New Mountain Capital (the largest JDA owner). According to the agreement, JDA will recapitalize the company by privately investing $570 million in equity.^[4]

JDA Software raised $570 million and is preparing to sell

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

In mid-August 2016, the WSJ reported that Honeywell was close to buying JDA for $3 billion, taking into account the latter's debt. The companies' plans to conclude this deal were previously reported by Reuters, later it distributed data on Blackstone's plans to invest in JDA.

The raised $570 million JDA wants to launch on the development of innovations in its products, the creation of cloud solutions of the next generation, the development and improvement of already released software. In addition, part of the funds will be used to pay off debts and reduce interest payments by $70 million per year. The closing of the investment deal with New Mountain Capital and Blackstone is scheduled for the fourth quarter of 2016.

According to informed WSJ interlocutors, the sale of JDA shares to Blackstone was one of the options considered by New Mountain Capital to reduce the vendor's debt. By August 2016, the JDA had accumulated about $2 billion in debt, which is nine times the company's profit before interest, taxes, depreciation and amortization.

At this time, the company offers solutions for planning and managing deliveries at all stages of the chain - from the supply of materials and the organization of production to the delivery, distribution, warehousing and sale of finished products. As of August 2016, JDA has about 4 thousand customers in various industries, such as retail and the production of everyday goods. The company has a representative office in Russia.

2012

Revenue growth to $1 billion

By 2008, JDA's revenue grew to $384 million, and in 2011, after buying a close-to-scale supplier of SCM products i2 Technologies (represented in Russia), it reached $691 million. Finally, in 2012, the company's turnover exceeded the symbolic threshold and reached the level of $1.065 billion.^[5]

Company sold to New Mountain Capital for $1.9 billion

JDA was purchased by private investment firm New Mountain Capital for $1.9 billion in 2012. The new owner then merged JDA with RedPrairie.

IBM and Epicor in talks to buy JDA

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

According to a report published by Reuters, the deal is at an intermediate stage: there are already a number of possible buyers who have shown an active interest in JDA. In addition to vendors, there are "strategic buyers": these are private investment firms that can also benefit from this asset.

JDA representatives have not yet officially commented on this information. Some analysts called the JDA decision a big surprise. For example, Ferrari Consulting and Research Group expert Bob Ferrari, who is also the author of the Supply Chain Matters blog, believes that "all indicators until the last moment indicated that the company intends to act on the market independently."

One of the reasons for the sale, analysts call, for example, the desire of JDA to offer retail companies not only functionality in the field of automation of supply chains, but also other relevant processes, for example, merchandising. In addition, market observers believe, JDA may have intentions to promote cloud solutions, which it cannot do alone.

Analyst Ray Wang of Constellation Research recalled that the JDA software includes a technology stack. From Microsoft .NET this perspective, the range of JDA buyers may be even wider and include, for example, Aptean or who Epicor may play on this advantage. In his opinion, even separately, Microsoft may be interested in acquiring JDA and including software the company in its Dynamics ERP line. However, according to him, it is worth considering the fact that Microsoft previously avoided the absorption of back-office system vendors, focusing in this regard on the development of front-office CRM tools.

Oracle and IBM also have strong consulting practices in retail, according to Wang. Infor, one of the largest industrial ERP vendors, may also show interest in JDA. The cost of the transaction may be quite high, since in the fiscal year 2011 alone, the JDA earned about $700 million.

Opening of an office in Russia

JDA Software Group announced the opening of the first office in Russia. The decision to open the office was made due to the need to meet the increased demand for JDA solutions and services for organizing supply chains and retail in the region. The new JDA office is located in Moscow. The company's office will serve existing and potential clients in Russia and the CIS, including also Ukraine, Kazakhstan, Azerbaijan, Georgia and Belarus. Previously, JDA business in these countries was carried out from abroad with the help of strategic partners of the company in Russia. However, JDA will continue to work closely with strategic partners in Russia in the future.

2011: Delivery of RMS solutions for transport companies

JDA sells specialized solutions for transport companies, including Revenue Management System. The systems of this class are aimed at automatic analysis of market conditions, demand and the current structure of sales of passenger and freight transportation, which allows you to more effectively manage pricing, existing offers and thereby maximize the income received by the transport company.

RMS-class solutions improve demand forecasting accuracy, accelerate response to market changes, and improve efficiency and accuracy of business forecasting. In addition, the system allows you to fully control and plan the resources of the transport company, providing tools that can maximize its profitability. In particular, this will increase revenues by accurately forecasting demand on each flight and pricing passenger and freight traffic.

Technical support ($266 million) and consulting ($262 million), rather than license sales ($141 million), make a major contribution to the company's revenue.

Customers of the company are more than 6 thousand enterprises around the world and in various areas of the economy: retail, wholesale trade, metallurgy, transport and logistics. The company's annual turnover is at $700 million, business growth in 2011 - 9%. The business of JDA Software Group is growing, including through acquisitions - over the past 12 years, 11 companies have been bought.

In 2011, more than 60 JDA customers - both new and existing - implemented company solutions in EMEA. The reach of existing users of JDA solutions has also increased. Among the new and existing JDA customers in the EMEA region are Dohle Handelsgruppe, Fromageries Bel, Gloria Jeans, the Lenta hypermarket, Magnitogorsk Metallurgical Plant, Marks & Spencer, the network of wholesale stores Metro, Poundland Limited, Ltoit Prickers. Tata Steel Europe, Woolworths South Africa, as well as X5 Retail Group.

2010: Year-end revenue forecast of $590-625 million

JDA Software published a forecast of financial results for 2010. Taking into account the acquisition of i2 Technologies, which ended on January 28, 2010, the financial forecast includes the income of the absorbed company.

According to the forecast, the revenue of JDA Software for the entire year, which will end on December 31, 2010, will be 590-625 million. dollars The sale of licenses in 2010 should bring the company 125-135 million dollars. The revenue of JDA Software will include the results of i2 Technologies for 11 months.

The forecast of financial results contains data from two merged companies. In 2009, JDA Software earned $385.8 million in revenue. In connection with the acquisition, i2 Technologies did not report the results of the fourth quarter of 2009, however, taking into account the results of nine months for the whole of 2009, the company's revenue was estimated to be $220-230 million.

According to Hamish Brewer, CEO of JDA Software, the creation of a leading company in the market is in accordance with the plan. Once the i2 Technologies deal is completed, that confidence increases. The company expects to profit from the merger in the first year after the completion of the transaction. JDA Software is confident that this acquisition will positively affect the company's financial results.

JDA Software will not give up i2 Technologies customers and contracts to support its systems. Mr. Brewer compared the integration with i2 Technologies to the merger with Manugistics in 2006.

The acquisition of Manugistics almost doubled the size of JDA Software. As in the case of the takeover of i2 Technologies, Manugistics had developed technologies, but experienced difficulties in sales.

One of the main differences between these acquisitions is the expansion of the market share brought by each company. The deal with Manugistics brought JDA Software a presence in the manufacturing industry. i2 Technologies products are traditionally focused on discrete production.

The changes related to the acquisition will also affect the sales structure, Mr. Brewer said. i2 Technologies has traditionally entered into a small number of large transactions and received part of the proceeds from the sale of licenses and the provision of services. Over time, JDA Software intends to make more average deals in addition to large contracts and have more predictable revenues.

Business development is expected by increasing revenues from the sale of licenses and support. Also, Mr. Brewer sees opportunities for sales growth in increased sales of managed services, the deployment of solutions according to the SaaS model and through IT outsourcing services.

2008

i2 Technologies purchase deal collapses

i2 Technologies terminated the merger agreement dated August 10, 2008 with JDA Software Group and its subsidiary Iceberg Acquisition and expects to receive $20 million in compensation from JDA Software within three business days. The delay requested by JDA Software and not granted to it prevented the company from completing the deal. JDA Software management refused  to agree to disclose any information  explaining the circumstances that led  to the termination of the agreements.

According to Jackson L. Wilson Jr., chairman of the board of directors of i2 Technologies, the company has a strong financial position in the market and, despite the breakdown of the merger deal with JDA Software, intends to continue to operate  and support its customers.

As stated by Pallab Chatterjee (Dr. Pallab Chatterjee) Executive Director of i2 Technologies, in a difficult economic environment, SCM systems are critical for efficient business operations. Therefore, companies now need i2 Technologies technology and expertise, which focuses on developing innovative solutions and providing them with their customers.

As a result of the agreement, i2 Technologies' stock value fell to $5.90 per share from $6.35 in the morning trading hours, and JDA Software shares rose 19 cents  to be valued  at $12.76.

i2 Technologies purchase announcement for $346 million

In August 2008, JDA Software, one of the leading SCM vendors, announced its intention to acquire i2 Technologies. The transaction to be completed in Q4 2008 would amount to approximately $346 million. The combined client base is expected to exceed 6,000 companies, and the number of employees will be about 3,000.

For the JDA group, this is the eleventh major acquisition in the last 10 years, with Manugistics buying for $211 million in May 2006 for the most significant takeover so far. The JDA believes that they already have sufficient experience in "embedding" acquired companies into their own business structure, which is proved by the successful promotion of Manugistics developments, and now the accession of i2 Technologies is a logical and logical step for the company.

According to JDA CEO Hamish Brewer, i2 Technologies has been a key player in the SCM market for the past 20 years, and its acquisition will allow JDA to double its target market and include discrete manufacturing companies in addition to existing continuous manufacturing, retail and transportation customers. And if the acquisition of Manugistics at one time became a "revolutionary" step for JDA, which significantly changed its business and contributed to the turn towards automation of production companies, then the current takeover of i2 Technologies is not so much transformative as increasing the volume of the company's presence in the already mastered market. So, at the end of the transaction, the client base of the company will consist of about 1,500 retailers and 4,500 production and distribution companies.

The combined company's total annual revenue will be about $635 million, which, according to experts, significantly brings it closer to the "titans" of the automation market, such as SAP and Oracle. However, some analysts doubt that the company will be able to invest enough to provide the necessary support to the entire existing client base of i2 Technologies. i2 Technologies users, experts say, have shown enough patience over the past few years, waiting for the resolution of the difficult financial situation in which their vendor finds itself. And now they have the right to expect that their patience will be fully rewarded. And if the new owner cannot offer them all the services in demand in the near future, then these companies will probably begin to look for a replacement for their current supplier. 

It is possible that as a new SCM provider, they will choose one of the ERP vendors that have also recently been subject to a trend towards asset and development consolidation, and therefore can offer a much more complete range of solutions, including integrated applications for business analysis and business efficiency, also demanded by manufacturing and trading companies. Nevertheless, logistics automation, including warehouse and transport, has so far been a rather independent and specialized area in which ERP solutions do not yet have sufficient functionality. Therefore, in this area, one can expect more likely to aggravate "internal" competition - between various specialized SCM platforms, for example, between JDA, Manhattan Associates and RedPrairie, experts say.

1996-2006

JDA entered the exchange in 1996.

In 1998, JDA bought the software company Arthur Retail, in 2000 - the supplier of solutions for planning retail space Intactix, in 2006 - the company E3 Corporation and the well-known in our country Manufacturing.

1985: Foundation of the company

JDA Software was founded in 1985 (headquartered in Arizona).

Notes