IBM, Epicor could be among potential JDA acquirers

The supply-chain software vendor is reportedly putting itself up for sale

IBM, Epicor and other vendors could be eyeing a purchase of supply-chain software vendor JDA, analysts said Tuesday following a published report that the company was looking for suitors.

The sale activities are "at an advanced stage," with a number of potential buyers showing interest in JDA, according to the report, published by Reuters late Monday. Along with "strategic buyers," private equity firms are said to be interested, according to Reuters.

A spokeswoman for JDA didn't immediately respond to a request for comment on Tuesday.

JDA's reported intentions came as some surprise to analyst Bob Ferrari of the Ferrari Consulting and Research Group, who authors the Supply Chain Matters blog. "All the indicators were that they were going at it alone," he said.

In terms of functionality, JDA has sound capabilities for retail companies, "not just in terms of supporting the supply chain, but also the merchandising activities that go into retail," Ferrari said.

Another motive for JDA to seek a buyer could be its desire to get deeper into cloud computing, something that could require a deeper-pocketed owner. At JDA's recent user conference, officials talked about taking the company's existing software and cloud-enabling them, Ferrari said.

JDA's software incorporates Microsoft's .NET technology stack. To that end, JDA buyers "could include Aptean, Epicor, and other companies which would benefit from a .NET stack and retail and supply chain customer base," said analyst Ray Wang, CEO of Constellation Research.

Microsoft itself may also be interested, given the natural fit JDA would make with its Dynamics ERP (enterprise resource planning) software. But Microsoft is a dark horse at best, according to Wang. "They have seemed to avoid large acquisitions in the back office side, focusing more on front-office CRM [customer relationship management]."

Meanwhile, Oracle and IBM both have sizable consulting practices for retail, Wang said. Infor, one of the industry's largest independent ERP vendors, could also benefit from a JDA acquisition, Wang said.

Such a deal could be expensive, as JDA reported nearly US$700 million in revenue for its fiscal 2011.

The company also drew headlines earlier this year when it disclosed that the US Securities and Exchange Commission was investigating some of its accounting practices. The vendor ultimately restated a number of financial statements, but said an internal audit had uncovered no intentional wrongdoing.

Chris Kanaracus covers enterprise software and general technology breaking news for The IDG News Service. Chris' email address is Chris_Kanaracus@idg.com

Tags business issuesapplicationsIBMepicorsoftwareJDAMergers and acquisitionssupply chain management

Recommended

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Chris Kanaracus

IDG News Service

Comments

Comments are now closed.

Most Popular Reviews

Follow Us

Best Deals on GoodGearGuide

Shopping.com

Latest News Articles

Resources

GGG Evaluation Team

Kathy Cassidy

STYLISTIC Q702

First impression on unpacking the Q702 test unit was the solid feel and clean, minimalist styling.

Anthony Grifoni

STYLISTIC Q572

For work use, Microsoft Word and Excel programs pre-installed on the device are adequate for preparing short documents.

Steph Mundell

LIFEBOOK UH574

The Fujitsu LifeBook UH574 allowed for great mobility without being obnoxiously heavy or clunky. Its twelve hours of battery life did not disappoint.

Andrew Mitsi

STYLISTIC Q702

The screen was particularly good. It is bright and visible from most angles, however heat is an issue, particularly around the Windows button on the front, and on the back where the battery housing is located.

Simon Harriott

STYLISTIC Q702

My first impression after unboxing the Q702 is that it is a nice looking unit. Styling is somewhat minimalist but very effective. The tablet part, once detached, has a nice weight, and no buttons or switches are located in awkward or intrusive positions.

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?