Honeywell Explores Acquisition of JDA Software
New Mountain took JDA Software private in 2012 for $1.9 billion and then merged it with a company called RedPrairie.
Honeywell, on the other hand, has been looking to beef up its sensing and productivity solutions division, as the rise of internet shopping fuels demand for warehouses and logistics that speed up delivery and lower costs.
The company has been struggling under the burden of more than $2 billion in debt. Earlier this year, credit ratings agency Moody’s Investors Service warned that JDA Software’s debt levels might be unsustainable and that the risk of impairment in its capital structure would be high without a sizeable equity infusion or reduction in debt.
JDA Software , based in Scottsdale, Arizona, provides retail and supply chain planning and execution solutions for more than 4,000 corporate customers worldwide.
The sources asked not to be identified because the negotiations are confidential. Honeywell, New Mountain Capital and JDA Software declined to comment.
JDA Software’s majority owner, buyout firm New Mountain Capital LLC , has already explored a sale of the company to private equity firms, and there is no certainty its latest talks with Honeywell will result in a deal, the people said on Monday.
According to Reuters , the acquisition would illustrate how Honeywell , a U.S. diversified industrial conglomerate, is keen to boost its automation portfolio after it agreed last month to acquire Intelligrated Inc , a U.S. distribution systems and logistics company, for $1.5 billion.
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Blue Yonder
Blue Yonder (formerly JDA Software, Inc.) provides seamless, friction-free commerce, empowering every organization and person on the planet to fulfill their potential. Blue Yonder’s machine learning-driven digital fulfillment platform enables clients to deliver to their customers when, how and where they want it. Applying over 35 years of domain expertise, contextual intelligence, and data science, Blue Yonder is helping more than 3,300 of the world’s leading manufacturers, retailers and logistics companies create more autonomous, sustainable and profitable operations.
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