Honeywell reportedly in talks to acquire JDA Software
Honeywell International is in talks to acquire JDA Software Group Inc in a deal that would value the supply chain management software company at roughly USD $3 billion, according to Reuters.
New Mountain Capital LLC, JDA’s majority owner, has previously contemplated a sale of the company to private equity firms, and a source said yesterday that there is no guarantee that talks with Honeywell will result in a deal.
Due to the confidential nature of negotiations, the sources asked not to be identified.
Scottsdale, Arizona-based JDA Software provides end-to-end, integrated retail and supply chain planning and execution for more than 4,000 customers across the globe. The company has some $2 million in debt to contend with and was recently given warning by Moody’s Investor Service that its capital structure could be impaired without a reduction in debt or sizable equity investment.
Increasingly fierce competition among software vendors for products in supply chain planning, warehouse management and transportation will further reduce JDA Software’s market share.
Last month, Honeywell acquired Intelligrated Inc, a US distribution systems and logistics company for $1.5 billion. The diversified industrial conglomerate is looking to increase its automation portfolio and boost its sensing and productivity solutions division as increased online shopping calls for streamlined logistics processes.
Honeywell, New Mountain Capital and JDA Software all declined to comment.
This story was originally reported by Reuters.
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