On November 1, 2012, RedPrairie Corporation and JDA Software announced their merger. Under the terms of the agreement, the entities affiliated with RedPrairie will effect a cash tender offer to acquire all outstanding shares of JDA common stock for $45 per share. My initial positive and negative thoughts on the merger were outlined in Part One of this blog series, while Part Two discussed how the merger might work and some points to consider when evaluating the merger.
After any merger of two large companies in a specific market, there is inevitably a shift in the market landscape, and opportunities become available that a savvy competitor will take advantage of. A look at the current state of the SCM market reveals that we need much more innovation than consolidation in the market, such as new solutions and capabilities in addition to “upgrades” and increased ease of use. RedPrairie/JDA will now have to be focused on product family rationalization, stabilizing their employee base, and retaining customers. But at the same time the smaller vendors in the space such as Logility, Manhattan Associates, Kinaxis, E2open, and ToolsGroup, will, if they’re smart, be focused on innovation, new customers, customer success, and growth—real growth on a global basis.
Part 1 of this blog post series followed the genesis of Manhattan Associates from its inception in 1990 throughout the mid-2000s. During this time, Manhattan Associates was the epitome of an impeccable supply chain management (SCM) software company in terms of market share, growth, profitability, and its product capabilities. Indeed, the company set the industry standard for the supply chain execution (SCE) space and was the envy of its competitors.
But lately, the two competitors that had long looked at Manhattan from behind, RedPrairie Corporation and JDA Software, have been posting much more upbeat news in terms of growth in contrast to Manhattan’s declining revenues. Part 2 analyzed some possible reasons behind that occurrence and focused on RedPrairie’s track record.
Part 4 of this blog post series will conclude with predictions about what’s in store (no pun intended) for all three renowned SCM vendors. Read the rest of this entry »