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

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Mergers and acquisitionsbusiness issuesIBMsoftwareapplicationsepicorsupply chain managementJDA

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

Chris Kanaracus

IDG News Service
Show Comments

Cool Tech

Breitling Superocean Heritage Chronographe 44

Learn more >

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?